Implement the examination of People’s credit funds under the direction of the SBV Governor in 2021

10:48-29/04/2021

On April 19, 2021, the Deposit Insurance of Vietnam (DIV) held an online conference to deploy the examination of People’s credit funds (PCFs) under the direction of the State Bank of Vietnam (SBV) Governor in 2021. The aim of the conference is to unify and guide the examination contents in the DIV system and propose solutions for consolidation and development in the coming time.

 

Attending the conference were Mr. Le Quang Huy - Director of Department III of Banking Supervision Agency (BSA); Mr. Bui Quang Vu - Deputy Director of Department of cooperative credit institution and microfinance institution inspection, Department III, BSA; Mr. Nguyen Huy Trang - Officer of Department III, BSA.

 

On the side of SBV branch in Hanoi, there were Mr. Tran Quoc Hung - Deputy Director and Ms. Nguyen Thi Nhung - Senior Inspector, Inspection Department.

On the side of DIV, there were Mr. Pham Bao Lam - Chairman of the Board of Directors; Mr. Dao Quoc Tinh - General Director, together with leaders and officers of relevant departments at DIV’s headquarters; Directors and Deputy Directors in charge of examination, leaders and staff of relevant departments and divisions at branches via 07 video conference points.

On the opening remarks of the conference, Mr. Pham Bao Lam stated that recently, DIV cooperated with relevant departments of the SBV to propose and implement solutions to consolidate the operation of PCFs, especially the implementation of the Prime Minister's Directive No.06/CT-TTg dated March 12, 2019 and the implementation of the project “Consolidating and developing the PCF system to 2020, with the vision to the 2030” issued together with Decision No.209/ QD-NHNN dated January 31, 2019 of the SBV. Despite impacts of the Covid-19 epidemic and severe flooding in the central provinces, DIV had overcome difficulties and successfully completed the PCF examination as directed by SBV Governor. In particular, DIV has made many proposals and recommendations to PCFs to surmount the shortcomings and violations detected through examination, and at the same time, proposed recommendations to the SBV to correct the mechanism and policy for the operation of PCF system.

In 2021, DIV continues to examine 35 PCFs in 19 provinces and cities nationwide as directed by the SBV Governor. Beside the examination contents as applied in 2019 and 2020, a number of new contents are added such as safety ratios in operation, loan activities (in particular, directly compare loans and verify the actual use of loans).

 “I believe that, with the close guidance of the SBV's leadership, the support of the BSA and the determination and efforts of each officer in the examination, DIV will well completed the assigned tasks, affirmed the role of protecting the legitimate rights and interests of depositors, maintaining the stability of the system of credit institutions, ensuring the safe and healthy development of banking activities”- Chairman Pham Bao Lam emphasized.

Speaking at the conference, Mr. Le Quang Huy - Director of Department III of the BSA assessed the PCF system's operation as well as the effectiveness of the examination. He said: “Recently, the DIV and the Cooperative Bank have been the important factors for the successful implementation of Project 209, dealing with backlog issues for PCF system”. Following the success of the past few years, Mr. Le Quang Huy hoped that DIV will continue to promote the roles, deploy the examination in a more formal and methodical manner, becoming a solid back-end of the SBV in examining and supervising PCFs.

 At the conference, DIV presented the summarized report on reviewing the examination of PCF under the direction of the SBV Governor in 2020. The delegates also learned the guidance on PCF examination under the direction of the SBV Governor in 2021 and discussed, shared experience related to examination contents and methods with the representatives of Department III of BSA and SBV Hanoi branch.

On the closing remarks, Mr. Vu Van Long - Deputy General Director of DIV affirmed that, in order to meet the assigned tasks under the direction of the Prime Minister and the SBV Governor in 2021, DIV would increase the training for staff in charge of examination. At the same time, DIV would plan to organize a number of working sessions with SBV provincial branches and PCFs subject to be examined to  guide the implementation of new requirements. Mr. Vu Van Long believed that through the conference, examination officers would be equipped with useful knowledge to apply effectively to their work. Meanwhile, it was suggested that examination staff in the DIV system should continue to do research, improve knowledge and skills to smoothly and effectively deploy the annual examination plan. 

Communication Department