Trang Chủ
Since 2019, the Governor of the SBV assigned the DIV to do the pilot examination with 06 People's Credit Funds in 5 provinces/cities. By the end of 2022, the SBV has assigned DIV to examine 99 People's Credit Funds in 29 provinces/cities with the number of People's Credit Funds and examination content increasing over the years. Through examination, DIV discovered a number of shortcomings and errors in the implementation of legal regulations. At the end of the examination, the examination teams sent timely reports to the SBV Branch in the province/city directly managing the People's Credit Funds to recommend handling the shortcomings and violations discovered through the examination. In particular, DIV always coordinates closely and reports regularly to the State Bank of Vietnam's provincial/city branches during the examination implementation process to handle complex issues that arise during the examination process.
Results of examination implementation over 4 years
Since 2019, after being assigned new tasks by the SBV with sensitive and complex examination contents such as directly reconciling deposits with customers, DIV has always been ready, proactive and focused all resources to meet the needs of the requirements of the SBV. Over the past 4 years, DIV has systematically implemented examination work at the request of the SBV. Immediately after receiving the directive dispatch from the SBV, based on the guidance document; DIV has immediately implemented the development of an examination plan, issued examination guidance documents... to unify implementation throughout the system, and at the same time organized training for officials participating in examination work. With the efforts and determination of the entire DIV system, overcoming difficulties caused by the Covid -19 epidemic, DIV has successfully completed the examination of the People's Credit Funds to ensure compliance with the content and requirements of the SBV.
Firstly, regarding the work of developing internal documents related to examination contents. Through the examination, it was shown that a number of examined units had fully and promptly developed relevant internal regulatory documents to the mobilization of deposits, the management and use of important seals, the implementation of regulations on limits and safety ratios in operations as well as lending activities, and appropriate basic content with the provisions of law. However, there are still many units that develop internal documents that are not complete and timely, the content is not in accordance with the law.
Secondly, on checking savings deposit mobilization activities: Based on checking and evaluating information and capital mobilization data, look between statements and detailed accounting books and between saved cards and savings deposit and related documents; Direct comparison of customers depositing money at 99 PCFs was examined and showed that: capital mobilization activities still exist, errors such as not ensuring the legality and validity of information on documents; the implementation of the cash collection and payment process is not in accordance with regulations. The main violations are errors in the operational process of accountants and treasurers of PCFs.
The examination also showed that at many People's Credit Funds, although the capital mobilization rate in the area is at a high level, it is not guaranteed to maintain the minimum ratio of deposit mobilization from members to the total deposit receipt level.
Thirdly, regarding the management and use of important seals. According to the examination results, there are still shortcomings in the management and use of seals, management, monitoring, inventory and damaged prints.
Fourthly, regarding compliance with regulations on limits and safety ratios in operations. Some units have not complied with regulations on limits and safety ratios in operations such as minimum total capital, solvency ratio, maximum ratio of short-term capital used for medium and long-term loans. In addition, most units calculate and determine some ratios incorrectly according to regulations because they do not clearly understand how to calculate the ratios, the calculation completely depends on the accounting software, not paying attention to the regulations of monitoring and calculating limits and ratios to ensure safety in operations.
Particularly for the credit limit for 01 customer and related customer groups, credit grant restrictions, the examination teams discovered many shortcomings and errors, because the People's Credit Funds did not strictly control the calculation and maintenance of these limits as prescribed.
Fifthly, about lending process; examination and supervision after lending is not carried out in accordance with regulations, there are remaining errors and potential risks; examination and supervision of customer loan usage at many PCFs has not been carried out in accordance with regulations.
In addition, some units lend to members of the Board of Directors/Chief Accountant/Supervisory Board but have not been approved by the Board of Directors and disclosed in the People's Credit Fund; not reporting to the Members' Congress on the loans incurred up to the time of taking data for the Members' Congress; not reporting to the SBV according to regulations.
Orientation and solutions for implementing examination work according to the direction of the Governor of the SBV
In the coming time, DIV will implement more drastically and effectively the tasks and solutions set out in Directive No.06/CT-TTg dated March 12, 2019 of the Prime Minister and direction of the SBV in official dispatch No.566/NHNN-TTGSNH dated February 6, 2023. The SBV has assigned the DIV to carry out examinations with the orientation of expanding the quantity and content of examinations.
In particular, in 2023, the SBV has assigned the DIVV to carry out new content on comprehensive examination of lending activities, focusing on reviewing customers' loan applications on that basis and evaluating civil legal capacity, civil behavior of customers, consideration of elements in credit contracts, purpose of loan use, collateral... and direct comparison of borrowers. Implementing these contents, DIVwill have a basis to comprehensively evaluate the operating situation of each examination subject, thereby making appropriate recommendations for timely correction, remediation and handling. Besides, propose and recommend competent agencies to make appropriate corrections and supplements, contributing to perfecting the legal basis, strengthening and consolidating the People's Credit Fund system.
From the achieved results, to be ready to effectively deploy examination work as required by the SBV - a key task in 2023, DIV needs to implement some of the following solutions:
Firstly, regarding the legal basis for conducting examinations at the request of the SBV: after 5 years, the DIV will coordinate and participate in supporting the examination and supervision functions of the SBV of People's Credit Funds on the basis of provisions in Directive No. 06/CT-TTg dated March 12, 2019 of the Prime Minister, up to now, it is necessary to complete the legal basis related to examination operations as required by the SBV with a legal document.
Secondly, regarding the coordination between the SBV and DIV: Implement well the regulations on coordination and information exchange between the SBV branches in provinces and cities and DIV Branches. At the same time, it is recommended that the SBV notify DIV from the beginning of the year about the number, objects of examination and examination content so that the DIV can proactively arrange time, human resources and other material conditions. It is recommended that the SBV provide more specific guidance on examination content and methods, especially strengthening coordination in handling problems during the examination process; Handling violations after examination.
Thirdly, regarding the implementation of examination work: members of the examination team research and better grasp the purpose, requirements, examination content and ways and methods of inspecting each content in accordance with the direction of the SBV and guidance of the DIV. The examination team carried out the examination in accordance with the SBV's requirements on examination content and methods, ensuring that it met the set purposes and requirements; examination results must be fully and accurately reflected; Clearly analyze the causes of problems and violations to make realistic recommendations, and clearly state the responsibilities of relevant groups and individuals; Avoid stating general causes or reasons inconsistent with the shortcomings and violations discovered through examination.
Fourthly, about training: DIV always focuses on training related to examination contents, however, to improve the effectiveness of examination as well as carry out examination of new contents, DIV continue to further strengthen training in the direction of in-depth training according to examination content as well as skills for examination officers.
Fifthly, leaders at all levels are requested to create favorable conditions in terms of means, equipment, and funding to carry out examinations at the request of the SBV. Because the examination work required by the SBV include comparing with customers who deposit and borrow money, while many PCFs operate in remote areas with underdeveloped transportation, so the work encountered many difficulties.
To continue promoting the results achieved over the past 4 years, with the attention of the Board of Directors of the DIV and the efforts of all examination officers throughout the system, the DIV strives to successfully accomplish such key tasks in 2023.
Communication Department
