SBV to requires banks under special supervision to report daily: draft circular

Local banks that are under special supervision due to high risk ratios will have to report 15 specific financial ratios daily on request of the Board of Supervisors, according to the Circular Draft on putting banks under special supervision.

Local banks that are under special supervision due to high risk ratios will have to report 15 specific financial ratios daily on request of the Board of Supervisors, according to the State Bank of Vietnam’s Circular Draft on putting banks under special supervision.

These restricted lenders will have to seek approval from the SBV to transfer ownership of CEO and Board of Management members, Board of Supervisors manager and members, General Directors; distribute retained earnings; carry out transactions of buying, selling, transferring and pledge assets, or any transactions which can change values of “Cash, gold, silver and precious metals”, “Deposits at other credit institutions”, loans to other credit institutions”; change accounting methods, policies of financial products and customer services.

Local lenders will likely be put under alert status for at most 2 years if they are found having problems about credit risks, market risks, operational risks and others, said the SBV.

However, the Decision to put banks under special supervision won’t be disclosed to the public unless the SBV’s Governor decided to do so, the Circular Draft read. – Stoxplus.com

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Jun 11 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry