Decision 1998/215/qđ-Nhnn: Issued Regulations To Control Especially For The Vietnam Joint-Stock Credit Organization

Original Language Title: Quyết định 215/1998/QĐ-NHNN: Ban hành Quy chế kiểm soát đặc biệt đối với các tổ chức tín dụng cổ phần Việt Nam

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The decision on issuing special control regulations for credit institutions in Vietnam Joint-stock STATE BANK GOVERNOR pursuant to the law on Government Organization 30/9/1992;
Pursuant to Decree No. 15/CP on 02/3/1993 of the Government about the tasks, powers and responsibilities of ministries, ministerial agencies;
Pursuant to decision No. 96/1998/QD-TTg dated 19/5/1998 of the Prime Minister about the strengthening arrangement of joint stock commercial banks in Ho Chi Minh City;
According to the proposal of the Director General, financial institutions-Bank, the decision article 1.-attached to this decision "special control regulations for the Vietnam Joint-stock credit organization".
Article 2.-the decision to this effect after 15 days from the date of signing.
Article 3.-Office of the Governor, the Director of the financial institutions, the Chief Inspector of the State Bank, heads of relevant units in the central State Bank; Director of the State Bank branch, city; Chairman of the Board, General Director (Manager) of the credit organization shares responsibility for this decision enforcement./.
SPECIAL CONTROL REGULATIONS for CREDIT INSTITUTIONS in VIETNAM JOINT STOCK (attached to decision No. 217/1998/QD-NHNN5 on 29/6/1998 of the Governor of the State Bank) CHAPTER i. GENERAL PROVISIONS article 1. In order to ensure the legal rights of depositors, helping credit institutions to overcome financial difficulties, maintain affordability, the ability to pay, the State Bank of Vietnam (hereinafter abbreviated as State Bank) decide to put into the special control when credit institutions falling into one or a number of cases stated in article 5 rules This mechanism.
Article 2. Control especially the Bank performs business management measures in particular as specified in this regulation to control, direct monitoring of the situation of the Organization and operation of credit institutions.
Article 3. This regulation applies to the commercial bank and finance company shares (hereinafter abbreviated as credit institution shares) were placed in control of the State Bank.
Article 4.
1. The Governor of the State Bank decided the latest credit institution shares on special control status and decided to end the special control;
2. The decision of special control and decided to end the special control was the State Bank informed the competent State bodies and local authorities to coordinate implementation.
 
CHAPTER II. THESE SPECIFIC PROVISIONS article 5. Credit institutions the shares could be placed into a special control status as falling into one or more of the following cases: 1. Risk of loss of ability to pay, are manifest: 1.1. 3 times in a month, did not maintain the dynamic property value is equivalent to the account must be paid within the next 3 working days;
1.2. The inability to mobilize to pay the due debt;
2. the risk of loss of liquidity, are manifest: 2.1. The repayment provision, overdue loan debt from 12 months or more accounted for over 10% of the total outstanding loans;
2.2. The customer has no debt payment capability, no legitimate collateral is greater than 100% of the capital itself.
3. The number of accumulated losses greater than 50% of the total capital of food and funds.
Article 6.
1. When there is risk of falling into one of the status referred to in article 5, the credit institution must immediately report stock State Bank branch where credit institutions based on the financial situation, the causes and the measures adopted or envisaged to apply to fix.
2. Pursuant to the report of the joint-stock credit organization prescribed in clause 5.1. This and the ability to rectify themselves or through inspection, inspection, monitoring, detection of credit institutions the shares in one of the cases referred to in article 5, the Director of State Bank branch where credit institutions stake headquartered or State Bank inspectors must report and recommendations to the State Bank Governor decided to organize shares credit on special control status.
Article 7. Special control decisions include the following: 1. The name of the credit organization controlled stock in particular;
2. The reason the special control;
3. They, member name, and the specific duties of the Control Board;
4. Time limit for control special.
Article 8.
1. the Special Committee was established by the decision of the Governor of the State Bank, the head of so the State Bank Governor.
2. Special Control Manager is responsible for assigning tasks to the members of the Board under the scope of the tasks, powers has rules; responsible handling of issues related to special control process the credit organization stock; responsible to the Director of the Bank branch, the Governor of the State Bank of conducting special control Committee and decisions related to the special control institutions.
3. the Special Committee must have a minimum of 3 members, special control Committee members must have the following standard: 3.1. As officers of the State Bank branch, in the room: the management of the credit institution, the aggregate (where there is no room to manage the credit organization), Inspector, foreign exchange management, accounting, credit;
3.2. Have qualified, experience of professional work and working time in the banking industry for at least 10 years;
3.3. Not the shareholders, father, mother, wife, husband, son of one of the members of the Board of Trustees, controllers, General Manager (Director) of the credit institutions controlled shares in particular.
4. The Special Committee members work as assigned by the head of Department and responsible to the head of Department, Director of the State Bank branch, the city about his mission. The replacement Control Board members especially as the Governor of the State Bank decided at the suggestion of the Director of the State Bank branch, the city and head of a special control.
5. where necessary, the Governor of the State Bank will assign a credit organization to join the special control institutions and shares and appoint officers of the institutions that participate in the Special Committee.
Article 9. Special Control Committee has the duties, powers and responsibilities: 1. Tasks: 1.1. The Steering Board, supervisory board, General Director (Director) credit institutions shares are put into a special control scheme construction solidify the Organization and operation.
The content options are clear: status of organization and operation, causes, remedies, duration and efficiency of the scheme;
1.2. The direction and supervision of credit institutions of shares implemented the measures outlined in the consolidation approach equity credit institutions were particularly through Control Board;
To steer implementation projects, special control Committee are right to ask credit institutions shares: 1.2.1. Report, provide documentation, information related to the personnel organization, activities, financial status;
1.2.2. the entire inventory of existing assets or perform independent audits in order to determine the situation of operation, financial institutions and at the time the shares were placed in a special control condition to determine the true financial status;
12.3. Invite the debt, creditors compare to determine the possibility of debt collection, debt;

1.2.4. Establishment of the records suggested law agencies handle these objects have behavior violates the law or intentionally fails to pay the debt;
1.3. Regularly report to the Director of State Bank branch about the situation, the happenings of the credit organization stock; Monthly report reviews the results of the consolidation approach equity credit institutions up to the State Bank Governor.
2. Power: 2.1. Was right to suspend these activities inconsistent with the approach that has been adopted, the provisions do not ensure safety in operation can be detrimental to the interests of depositors. In the time up to 3 days to report the Governor of the State Bank of the decision to handle the suspension;
2.2. Proposed State Bank Governor to suspend the right to Executive, management, control of credit institutions of the members of the Management Board, supervisory board, General Director (Director), Vice President (VP).
2.3. The request of the Board, General Director (Director) dismissed, suspended ties with the inheritor of credit institutions are violations of the law, the Executive is not organized and consolidated approach has been adopted;
2.4. The petitions to State Bank Governor to renew or terminate the special control period;
2.5. The petitions to State Bank Governor about special loans to ensure the affordability of customer deposits.
2.6. The proposal to State Bank Governor decided the problem arises not in consolidation projects, renovation of the credit organization stock in the special control phase.
3. responsibility: the Special Control Committee responsible to the Governor of the State Bank about his decisions in the process of implementing the special control.
Article 10.
1. Control Board working in credit institutions controlled stock in particular;
2. Control Board specifically use the seal of the Bank branch in the text, the report by the head of Department; confidentiality status of credit institution unless otherwise requested in writing by the competent authorities;
3. Control Board special mission ends when the Governor of the State Bank has decided to discontinue the special controls for credit institutions.
Article 11. Management Board, supervisory board, General Director (Director) credit institutions controlled shares is particularly responsible for: 1. Build options to consolidate the Organization and the activity Control Board especially through and organize the implementation of the scheme;
2. Continue to administer, control, operations and secure the assets of the credit institution shares in accordance with the provisions of the law of the State Bank, except in cases of suspended privileges, Executive, control of the credit organization;
3. Work regularly in stock credit organizations to implement projects to strengthen and monitor the activity of the Executive Committee. The individuals who deliberately evade enforcement of the mission will be prejudice the responsibility according to the provisions of the applicable law;
4. Responsibility for the issues related to the Organization and operation of credit institutions the shares before, during and after the period of special control.
5. in the case of the provisional Administration Committee established under clause 2 article 9 2.2 properties, of the Provisional Board must now determine the responsibilities of the members of the Management Board, supervisory board and former Executive Committee and receiving the right governance, control, administration of the credit stock.
6. Executive seriously the requirements of special control Committee.
7. situation report and the results of special control measures at the request of the Special Committee;
8. Make the regime reduced to the lowest level the fiscal spending to reduce financial losses;
9. location, means of layout work for special control Committee.
Article 12. In order to secure the assets of the credit institution shares, during a special control, prohibit credit institutions the shares perform the following tasks, if not yet approved by the State Bank: 1. For shareholders in the transfer of shares;
2. Divide the return of shares (if any);
3. Take off the seal, pipe, pledge, mortgage, transfer of assets and materials, related records;
4. Reject or reduce the rights, obligations and liability for customers.
Article 13. To ensure affordability of customer deposits, credit institutions controlled stock in particular can be other credit institutions or the State Bank lending especially according to the recommendations of the Board of the credit organization shares and of the Control Board. This special loan will be repaid in priority before all other debts of the credit organization; Loan procedures and the use of this loan is secured in accordance with the current rules.
Article 14. State Bank Governor decided to control deadlines specific exceptional toward each credit institution shares.
In case the necessary and credit organization stock recommendations, State banks can give credit institutions the shares be extended special control time. Special control time (including extended time) not exceed 2 years.
Article 15. State Bank Governor decided to discontinue the special controls for credit institutions in the following cases: 1. special control expires without being renewed or credit institution shares are not likely to resolve the cause leading to the status of special control and State Bank decided to revoke the license to operate.
2. Credit institutions the shares have overcome the causes should the status of special control and return to normal operation.
3. Credit institutions shares are merged or consolidated with other credit organization according to the provisions of the current law.
4. Credit institution shares in bankrupt and being competent State agencies declared bankrupt according to law.
CHAPTER III. IMPLEMENTATION article 16.
1. Inspection of the State Bank has the responsibility to make the clue to receive resumes by State Bank branch in the province, the city proposed; evaluation and the Governor of the State Bank decided to put the credit institution into a State-controlled shares in particular, extend the time control, the end of special control; Special Control Board Director duties, powers and responsibilities are set forth in this regulation, monitoring the situation of credit institutions stock in particular control phase.
2. Service of financial institutions is responsible for coordination with State Bank Inspector reviews the status of credit institutions the shares to the State Bank Governor decided to credit organizations on the status of special control, extend the time control, the end of special control; The Governor of the State Bank of process specific to each credit institution shares before, during and after the period of special control.
3. The Service, the relevant Bureau in the central State Bank to base functions and the mission is responsible for guiding the handling of issues related to the Organization and operation of credit institutions shares are special control.
Article 17.
1. The Director of the State Bank branch, the city where the credit institution shares were placed in a special control status headquartered: 1.1. Cooperation with the inspectors State Bank, the State Bank Governor decided to control especially for credit institutions the shares;

1.2. Comments suggest to extend the time control, the end of special control;
1.3. Election officers are eligible, participating standards special control Committee;
1.4. Is the relationship with the authorities handle the problems arising in the area of special control process the credit organization stock;
1.5. Direction of activities of the Special Committee by the Governor of the State Bank;
1.6. Responsible to the Governor of the State Bank on the special control institutions of local stock;
2. The Director of the State Bank branch, the city where the credit organization stock was in a State of special control based branch: responsible for coordinating at the suggestion of the Board of control especially in handling the matters related to the implementation of the plan to consolidate the Organization and operation of credit institutions, stock control Special./.