On November 6, 2024, Deputy Prime Minister Ho Duc Phoc signed Decision No. 18/2024/QD-TTg stipulating the functions, tasks, authority and organizational structure of the Banking Supervision Agency (BSA) under the State Bank of Vietnam (SBV). This Decision takes effect from January 5, 2025.
SBV Headquarters
The functions and tasks of the BSA
According to Decision No. 18/2024/QD-TTg, the BSA is an entity with the same status as a General Department under the SBV, and performs the functions of counseling and assisting the SBV Governor in the state management of the credit institutions and the foreign bank branches; the state management in the banking supervision and inspection; handling complaints and accusations, combating corruption, providing deposit insurance; conducting administrative and specialized inspections; and supervising the banking operations in the fields under the state jurisdiction of the SBV; meeting citizens, handling complaints and accusations, combating corruption in accordance with the laws; and other tasks as assigned by the SBV Governor.
The BSA is also tasked to submit to the SBV Governor for the latter to submit to the Government, the Prime Minister the following documents: draft Decrees of the Government, draft Decisions of the Prime Minister on the organizational structures and the operations of the credit institutions, the foreign bank branches, the representative offices of foreign credit institutions and other foreign institutions with banking operations in Vietnam, the banking inspection and supervision, and the deposit insurance; strategies, programs, schemes and key projects on developing the systems of the credit institutions, the foreign bank branches, the representative offices of foreign credit institutions and other foreign institutions with banking operations in Vietnam, the banking inspection and supervision, and the deposit insurance.
Submitting to the SBV Governor for decision, approval or promulgation of the following documents: Circulars on the organizational structures and the operations, the operational safety of the banking operations of the credit institutions, the foreign bank branches; regulations on the establishment, re-organization, dissolution, bankruptcy, liquidation of a credit institution, a foreign bank branch, a representative office of a foreign credit institution, or a foreign organization with banking operations in Vietnam; the regulations on the banking inspection and supervision, and the deposit insurance.
Issuing, amending, supplementing, revoking a license for the establishment and operations of a credit institution; a license for the establishment of a foreign bank branch; a license for the establishment of a representative office of a foreign credit institution or a foreign institution with banking operations in Vietnam, and the types of licenses for other banking operations as assigned by the SBV Governor.
Resolving the issues related to the organizational structures, the governance and the operations of the credit institutions and the foreign bank branches in order to ensure safe and sound banking operations of the credit institutions and the foreign bank branches as assigned by the SBV Governor and in accordance with the applicable laws.
Performing the rights and responsibilities of the agency representing the ownership of the State equity at the credit institutions, the financial institutions, and any businesses managed by the SBV in line with the legal provisions and the assignment of the SBV Governor.
Re-inspecting the cases that have been concluded by the Banking Inspection and Supervision Department, the Supervision and Inspection Units under the SBV municipal/provincial branches, in such cases when there are signs of law violations in the inspection process, or after having received and reviewed any related complaints, denunciations, recommendations or feedbacks.
Applying enforcement actions in accordance with the authority, or proposing the competent agencies, organizations, or individuals to take enforcement actions to ensure the safety of the banking system, and penalizing violations committed by the inspected or supervised subjects in accordance with the applicable laws.
In addition, the BSA is also responsible for assisting the SBV Governor in performing the state management in meeting the citizens, resolving complaints and accusations; performing the assigned tasks and power in meeting the citizens, resolving complaints and accusations in accordance with the laws and as assigned by the SBV Governor; assisting the SBV Governor in performing the state management in combating corruption; performing the tasks and power in the combat against corruption in accordance with the applicable laws and as assigned by the SBV Governor.
The organizational structure of the BSA
About the organizational structure, the BSA shall be comprised of 7 entities, namely:
- The Authority for Administrative Inspections (referred to as Authority I);
- The Authority for Banking Operation Safety Policies (referred to as Authority II);
- The BSA’s Office;
- The Department of Banking Inspection and Supervision I (referred to as Department I);
- The Department of Banking Inspection and Supervision II (referred to as Department II);
- The Department of Banking Inspection and Supervision III (referred to as Department III);
- The Department of Safety Supervision of the Credit Institution System (referred to as Department IV).
The Director of the Department of Banking Inspection and Supervision shall have the authority to make decisions on inspecting the subjects to the banking supervision as assigned (except for the cases in which the inspection decisions are made by the BSA Chief Inspector in line with the regulations on the organization and operations of the BSA); performs the tasks and mandates of the inspection deciding person, and take enforcement actions against any detected administrative violations in accordance with the applicable laws.
The SBV Governor shall stipulate the functions, tasks, authority and organizational structure of the entities under the BSA.
The BSA shall be comprised of one Chief Inspector and maximum 4 Deputy Chief Inspectors.
The Chief Inspector of the BSA shall be appointed/dismissed/removed/mobilized/seconded by the SBV Governor after having consulted with the Government’s Inspector-General.
The SBV Governor shall appoint, dismiss or demote any Deputy Chief Inspector of the BSA upon the request of the Chief Inspector of the BSA and in accordance with the laws.
Le Hang