Circular 08/2009/tt-Nhnn: Regulation On Special Control In Respect Of Credit Institutions

Original Language Title: Thông tư 08/2010/TT-NHNN: Quy định về việc kiểm soát đặc biệt đối với tổ chức tín dụng

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 The CIRCULAR stipulates special controls for credit institutions _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pursuant to the law the State Bank of Vietnam in 1997 and the law on amendments and supplements to some articles of the law on the State Bank of Vietnam in 2003;
Pursuant to the law on credit institutions in 1997 and the law on amendments and supplements to some articles of the law on credit institutions in 2004;
Pursuant to Decree No. 96/2008/ND-CP dated 26/8/2008 of the Government functions, tasks, powers and structure of the State Bank of Vietnam;
The State Bank of Vietnam regulations on special control in respect of credit institutions as follows: chapter I GENERAL PROVISIONS article 1. Scope this circular stipulates special controls for credit institutions established and functioning according to the law on credit institutions, including:-credit institutions of the State;
-Credit organization stock;
-Venture credit organization;
-Credit institutions 100% foreign capital.
Article 2. Application object 1. Credit institutions as defined in article 1 of this circular.
2. organizations and individuals related to control activities in particular credit institutions.
Article 3. Explanation of terms In this circular, the terms below are interpreted as follows: 1. "special control" is a credit institution was placed under the direct control of the State Bank of Vietnam (hereinafter the Bank) due to the risk of losing the ability to pay or risk losing the ability to pay.
2. "special control" is an organization consisting of members is established by the decision of the Governor of the State Bank (hereafter referred to as Governor) to direct control of credit institutions are put into special control status.
3. "special loans" are loans by State banks or other credit institutions or insurance deposits Vietnam for credit institutions are placed on special loan control condition in case of urgency to ensure the affordability of deposits for customers. Special loans be repaid in priority before all other debts of the credit organization.
4. "special control period" is the period of time from when the decision to put the credit organizations on the status of special control until a decision is made to terminate the special controls for credit institutions.
5. "credit organization representative" is someone of the credit institution are placed on special control or status as officers of the State banks appointed by the Governor on behalf of credit institutions to manage, control, credit organizations operating in the case of defective titles of members of Management Board Member, supervisory board, General Director (Director).
6. "organizational consolidation projects and activities" is organization and consolidation approach works for credit institutions are put into special control status.
Article 4. The Governor's jurisdiction 1. Decide the control of the special, limited time special control, extend the time limit for the special control, ending control especially for credit institutions.
2. The decision to establish the Special Control Committee and election of officers join Special Control Board under the provisions of this circular.
3. Specify other credit institutions taking control especially for credit institutions are put into special control status at the same time appoint officers of the institutions that participate in the Special Committee.
4. Specify the credit organization representative participated in the governance, control, credit organizations operating in the case prescribed in clause 9 of article 3 circular.
5. Determine the State Bank for credit institutions loans special loans under the provisions of Paragraph 7 of article 3 of this circular.
Article 5. Record-setting principles 1. The profile must be set up by the South Vietnamese. The Vietnamese copies and translations from English to Vietnamese competent agencies to be certified under the provisions of the law.
2. The text of the credit organization suggest the issues related to this circular by the Chair of the Board (in case of defective titles of Chairman, a member of the Board, Member Board of supervisors, or General Director) or representatives of credit institutions as defined in paragraph 9 of article 3 circular sign. The signed text is responsible for the accuracy, the integrity of the record under his authority.
3. The profile of credit institutions submitted to the State Bank, the State Bank branch in the city, where credit institutions are put into special control headquarters (hereafter referred to as the State Bank branch) using one of the form: send directly; sent by post; sent via fax or e-mail (call to confirm), then the original submission for the State Bank to check and save.
Chapter II SPECIFIC PROVISIONS section I CONTROL PARTICULARLY article 6. Conditions of credit institutions to the special control credit institutions can be placed into a special control status as falling into one or of the following circumstances: 1. the risk of loss of ability to pay, are manifest: 3 (three) times in a row does not guarantee a minimum rate of 1 between total assets "Yes" can pay right away over a period of 7 days According to and the total assets of "debt" to pay immediately in the next 7 day period for each type of coin, gold.
2. the Creditor does not have the ability to revoke risk losing the ability to pay, are manifest: bad debt accounted for 10% or more compared to total outstanding loans or from 100% of the total capital has come up within 12 consecutive months.
3. The number of estimated openings of credit institutions grew more than 50% of the total capital of food and funds.
Article 7. Special monitoring of credit institutions 1. In process management, inspection, testing, monitoring or through reports by credit institutions, credit institutions it deems the risk status of special control or serious breach of the provisions of the law on banking activities or other circumstances that lead to the condition of the credit organization operations are not safe , instability, the Governor can apply special monitoring measures for credit institutions.
2. State Bank of India can apply special monitoring measures: a) the election officers of the State Bank to directly in credit institutions, supervise the daily activities of the credit institution.
b) directs credit institutions implement measures consistent with the provisions of current legislation to remedy the situation poorly, not safety or stability of the credit organization.
c) requires credit institutions to report periodically or irregularly on the implementation of the content of the direction of the State Bank.
3. The Governor decided to end the term apply special monitoring measures.
Article 8. Special control decisions 1. Governor to consider, decide to put a credit organization to the special control when credit institutions are one of the signs referred to in article 6 of this circular.
2. The decision to put the credit organizations on the status of special control include the following: a) Name credit institutions are special control;
b special control reasons);
c), last name, the specific tasks of the members of the Supervisory Board particularly d) special control period.
3. special control decisions are notified to the credit institutions are put into special control status, State Bank branch, deposit insurance of Vietnam and the other specific case due to the Governor to decide.
4. Don't publicize the decision put credit institutions into special control condition, unless otherwise stated in paragraph 3 of this article.
Article 9. Organisational approach and methodology activities reinforce the Organization and activities must include at a minimum the following: 1. Name, address, website of the credit organization;
2. Name, address, telephone number of the members of the Management Board, the Supervisory Board members, the Director-General (Executive Director) credit institutions or representatives of credit institutions;
3. Summary of status situation of the Organization and operation of credit institutions;
4. The cause of credit institutions were put into special control;
5. measures to overcome the special control and plan the implementation of these measures.
Article 10. The responsibilities and powers of the credit institution are placed on special control status When in one of the cases referred to in article 6 of this circular, credit institutions must report in writing submitted by the State Bank, through the inspection agency, the Bank Supervision Department of the State Bank (hereafter referred to as inspection bodies Monitoring), which stated the financial situation, the causes and the measures adopted or envisaged to apply to fix.
2. Set the channel information accurate, complete, up-to-date, ensuring works smoothly for special control Committee during the special control institutions.
3. The Management Board, supervisory board, General Director (Director) credit institutions are placed on special or control condition representative credit institutions as defined in paragraph 9 of article 3 of this circular, is responsible for: a) approach build organizational and operational consolidation process through special control Committee; organizations implementing projects to consolidate the Organization and the activities that have been approved by the Governor.
b) continue to administer, control, operations and secure the assets of the credit institution in accordance with the provisions of the law, of the State Bank, except in case of temporary suspension of the right to Executive, management, control of credit institutions.
c) work regularly in credit organizations to implement the plan to consolidate the Organization and operation.
d) responsible for the issues related to the Organization and operation of credit institutions before, during and after the period of special control.
DD) observance seriously the requirements of the Special Committee relating to the organisation, management, control, administration of the credit.
e) situation report and the results of special control measures at the request of the Special Committee.
g) cost savings to limit financial losses.
h) arranged venue, means working for special control Committee.

4. in the time control, without the approval of the State Bank, prohibit credit institutions: a) allows the Chairman and the members of the Management Board, the Chairman and members of the Board, General Director (Director) transfer of shares (for credit institutions).
b) dividend (if any).
c), pipe, pledge, mortgage, transfer or have any transaction related to the property and documents, related records.
d) denying or diminishing the rights, obligations and liability for customers.
SECTION II SPECIAL CONTROL COMMITTEE article 11. Organization of Special Control Board 1. Special Control Board must have a minimum of 3 members of which 7 members is prefect.
2. the Special Committee members are officers in the relevant unit in the State Bank, Bank branch, or officers of other credit institutions proposed by the Governor.
Article 12. The mechanism of action of Special Control Board 1. The Special Control Committee members working in credit institutions are under special control mechanism of cum.
2. Control Board specifically use the seal of the State Bank branch (for credit institutions the shares) or of the State Bank (for the credit institutions of State credit institutions, credit institutions 100% foreign capital) in the text, the report by the Chief Secretary.
3. Control Board special mission ends when the Governor has decided to terminate the special controls for credit institutions.
Article 13. Standards, conditions of special control Committee members 1. As officers of the State Bank, Bank branch, and other credit institutions (as needed).
2. Bachelor or post-graduate degree in economics, law or area of expertise which I will assume in the process of implementing the special control at credit institutions.
3. Have a minimum of 3 years working in the banking industry.
4. the person concerned is not a member of the Management Board, the Supervisory Board members, General Manager of the credit institution are placed in special control status.
5. In addition to the provisions outlined in paragraph 1, 2, 3 and 4 above, the head of the special control must be the leading cadres level Service back-up in the Service, the Bureau of the expertise at the State Bank or the leader State Bank branch.
Article 14. The responsibilities and powers of the Control Board special 1. The responsibilities and powers of the Control Board Special: a) is responsible for: (i) be responsible before the law, before the Governor about his decision in the process of implementing the special control institutions;
(ii) after the maximum period of 30 days from the day the Governor issued the decision under the provisions of article 8 of this circular, special control Committee to steer the Board, supervisory board, General Director (Director) or representatives of credit institutions as defined in paragraph 9 of article 3 of this circular building plans strengthen organization and operation , through and the Governor approved of this approach;
(iii) directing, overseeing credit institutions are placed in special control status implemented the measures outlined in the plan to consolidate the Organization and operation;
(iv) monthly report, reviews the results of projects to consolidate the Organization and operation of sending State Bank (through surveillance inspection bodies), the State Bank branch;
(v) the State Bank report on the abnormal upheaval of credit institutions were placed in the control condition, the inappropriate activity in the process of implementing the content according to the organisational approach and activities that have been approved;
(vi) Keeping Secrets about the status of credit institutions were placed in the special control status; only provide information about the relevant credit institutions when requested in writing by the competent authorities.
b) Authority: (i) credit institutions proposed to be placed in special control status report, provide documentation, information relating to the Organization and operation of credit institutions for special control Committee;
(ii) credit institutions proposed to be placed in special control status the entire inventory of existing assets or perform independent audits to assess the financial situation of credit institutions at the time of credit institutions are put into special control status;
(iii) suggest that credit institutions are placed in special control status invites the debt, creditors compare to determine the possibility of debt collection, debt;
(iv) Establishment of records suggest the bodies of law handling the object violations of the law or intentionally fails to repay the credit institutions.
(v) suspension of the activity is not consistent with organizational consolidation projects and activities, to the rules of safely in Bank operations during special control and immediately report the Governor about this decision.
(vi) temporary suspension of administrator privileges, controlling, operating credit institutions of the President and the members of the Management Board, the Chairman and members of the Control Board, the Director-General (Executive Director), Vice President (VP) if it deems necessary and to report immediately to the Governor about this decision.
(vii) recommend the Governor suspended administrator rights, control, administration of the credit of the Chairman and the members of the Management Board, the Chairman and members of the Board, General Director (Director).
(viii) the requirements of the Board, General Director (Director) dismissed, suspended the work immediately for those violations of the law, not Executive Organization and consolidation projects operate within special control.
(ix) petition the Governor to extend or terminate the term of special control institutions.
(x) the Governor recommendations on special loan for credit institutions.
(xi) the Governor recommendations on measures for the handling of credit institutions were put on special control status in accordance with the provisions of the current law.
(xii) suggested the Governor decides the issue arises not mentioned in the plan to consolidate the Organization and activity within special control.
2. for special control board: a) the assigned tasks for the members of the Special Committee under the scope of the tasks, powers has rules;
b) is responsible for handling the issues that relate to special control process;
c) responsible to the Governor about the Special Control Committee and decisions related to the special control institutions.
3. for the Special Control Committee members: Special Control Board members are responsible to perform the work as assigned by the head of Department and responsible to the Chief of the enforcement duties.
SECTION III SPECIAL CONTROL PERIOD, extend the TIME LIMIT for CONTROL special, SPECIAL CONTROL TERMINATION article 15. Special control period, extend the time limit for the special control 1. Special control period a maximum of 10 years from the date the decision to put credit institutions to control the Governor's special effect.
2. In the case of petitioning the Governor extended the deadline for the special control credit institutions as defined in (ix) point b paragraph 1 article 14 of this circular, special control Committee has recommended the Governors Sheet for the renewal of the term of special control institutions or to refuse the renewal of (reason).
3. within a maximum of 15 working days from the date of the recommendation of the Special Committee, the Agency overseeing the Ombudsman Unit related opinions, General and the Governor decide to renew or not to renew the special control institutions (reason).
Article 16. Termination of special control 1. The Governor decides to terminate the special controls for credit institutions when in one of the following cases: a) special control expires without being renewed.
b) credit institutions were redress was the latest on special control and function normally.
c) credit institutions do not have the ability to fix the cause of the latest on special control lead to bankruptcies.
d) before the end of the term of special control, credit institutions organized according to the relevant provisions of the current law.
2. In the case of petitioning the Governor terminate the special control in respect of credit institutions as defined in (ix) point b paragraph 1 article 14 of this circular, special control Committee has suggested the Newspaper ended control especially for credit institutions.
3. within a maximum of 30 working days from the date of the recommendation of the Special Committee referred to in Paragraph 2 of this article, the Agency monitoring Inspection Unit relevant opinions, and the Governor decided to end the special control institutions.
Chapter III LIABILITY of the UNITS BELONGING to STATE BANK article 17. Inspection Agency, oversees 1. Inspection, detection and timely reporting to the Governor when credit institutions are at risk of falling into one of the cases referred to in article 6 of this circular.
2. Election of officers join special control Committee as proposed by the Governor.
3. Do the clue received the report and recommendations of the credit institution, the State Bank's branch, special control Committee, opinions of the relevant unit, General and the Governor decide the issues related to the special control of the credit organization according to the provisions of this circular.
4. Responsible for the management and retention of records under the security regime involves special control institutions.
Article 18. Legal service 1. Election officers join special control Committee as proposed by the Governor.
2. within a maximum of 15 working days from the date of inspection, monitoring bodies have suggested text, Legal Service opinion in writing about legal issues in the course of the special control institutions send inspection agencies, monitoring.
Article 19. Financial services-accounting

Within a maximum of 15 working days from the date of inspection, monitoring bodies have suggested text, financial-accounting Service has written comments on issues related to accounting mechanisms and special loan refund for credit institutions are in a State of special control.
Article 20. The relevant units at the State Bank of The relevant units at the State Bank to join the Board special control and handle the related matters when there is the Governor's proposal.
Article 21. State Bank of India branch 1. Check, detect and report the Governor promptly upon credit institutions are at risk of falling into one of the cases referred to in article 6 of this circular.
2. Proposed handling of issues related to the special control, extend the time limit for the special control, ending control especially for credit institutions by the credit organization and Special Control Board under the provisions of this circular.
3. Election of officers join special control Committee as proposed by the Governor.
Chapter IV the TERMS OF IMPLEMENTATION of Article 22. Effect 1. This circular is effective from 6/5/2010.
2. Decision No. 217/1998/QĐ-NHNN dated Jan. 23/6/1998 issued regulations to control especially for the Vietnam Joint-stock credit organization, decision No. 1071/2002/QĐ-NHNN dated Jan. 2, 2002 amending and supplementing a number of articles, account control rules especially for the Vietnam Joint-stock credit organization attached to decision No. 217/1998/QĐ-NHNN dated Jan. 23/6/1998 , Decision No 646/2002/QĐ-NHNN dated Jan. 21/6/2002 amending article 14 of decision No. 208/1998/QĐ-NHNN dated Jan. 23/6/1998 of the Governor of the State Bank.
Article 23. Organizing Chief, Chief Inspector, bank supervision, heads of units of the State Bank of Vietnam, the Director of State Bank branch in the province, the city, the President and the members of the Management Board, the Chairman and members of the Board, General Director of credit institutions are responsible for the implementation of this circular.