Headlines 03/09/2019 14:34 CH

Types of special administration over credit institutions are released

Hồng Thuận

On August 2, 2019, the State Bank of Vietnam promulgated the Circular No. 11/2019/TT-NHNN regulating the special administration over credit institutions.

Upon taking into consideration actual conditions and levels of risks arising from business activities of credit institutions, the Governor of the State Bank or the Director of State Bank’s branch may make his/her decision on:

- Putting a credit institution into special administration existing in the form of special surveillance or full control;

- Interpretations, extent, methods and activities of operational administration must be consistent with forms of special administration and regulations laid down in clause 1 of Article 15 in the Circular No. 11.

Including the followings:

- Special surveillance means an effort to put a credit institution into direct administration by the State Bank through such activities as, imposing direct remote directions, controls and on-the-spot inspections by the Special Administration Committee over operations of credit institutions. 

- Full control means an effort to put a credit institution into direct administration by the State Bank through such activities as, imposing direct directions and controls in an on-the-spot manner by the Special Administration Committee over daily activities of credit institutions. 

The Circular No. 11/2019/TT-NHNN will enter into force on October 1, 2019 and replace the Circular No. 07/2013/TT-NHNN dated March 14, 2013.

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