On October 18, 2024, in Hanoi, the State Bank of Vietnam (SBV) held a virtual conference on the internal control, audit and inspection at the credit institutions in 2024 under the co-chair of Governor Nguyen Thi Hong and Deputy Governor Pham Quang Dzung.
Speaking at the cConference, Governor Nguyen Thi Hong highly commended the contributions of the Boards of Directors/the Boards of Members, the Executive Boards and the Boards of Control at the credit institutions for effectively in performingfulfilling their assigned duties and tasks, contributing to ensuring ensuring that the operations of thethese institutions CIs comply with the laws, regulationss and the CIs’their charters. According to the reports of from the credit institutions, the internal control, audit and inspection processes at the CIs have continued to develop grow in both in scale and qin quality,; with the internal audit activities have gradually expanding to covered all of the banking processes and operations.
PreviouslyEarlier, in his opening speech at the Conference, Deputy Governor Pham Quang Dzung emphasized the importance of the internal control, audit and inspection at the credit institutions in to ensuringe operational the safety and sound governance of business operations, governance, and the compliance with the laws.
Deputy Governor Pham Quang Dzung delivers his opening speech
According to the SBV Deputy Governor, the SBV has issued a relatively fullcomprehensive set of relevant legal documents, includingsuch as Circular No. 44/2011/TT-NHNN dated December 29, 2011, regulating the internal control systems and the internal audits of the credit institutions and the foreign bank branches; Circular No. 13/2018/TT-NHNN dated May 18, 2018, regulating the internal control of the commercial banks and the foreign bank branches; Circular No. 14/2023/TT-NHNN dated November 20, 2023, regulating the internal control of non-bank credit institutions. The SBV has also advised the Government to submit to the National Assembly for the adoption of the Law on Credit Institutions in January 18, 2024, which clearly defines the functions, tasks and activities of the Boards of Directors, the Boards of Control, the General Directors of credit institutionsthe CIs, and innovates and institutionalizes the internal control and the internal audits of the credit institutions.
Mr. Lai Huu Phuoc, Deputy Chief Inspector in charge of the Banking Supervision Agency, speaks at the Conference
Reporting on the internal control, audit, and inspection systems at the credit institutions, Mr. Lai Huu Phuoc, Deputy Chief Inspector in charge of the Banking Supervision Agency, stateaid that the system of the internal control, audit and inspection at the credit institutions haved been organized into three independent lines of defense protection throughoutacross the organizational structures of the credit institutions to ensure the coordination, mutual support, as well as to avoid while preventing overlaps, contributing to the early detection and the warning of the signs of risks and violations, thereby ensuring safe and sound banking operations.
At the Conference, the representatives of the Boards of Control of from several credit institutions also shared discussed their experiences and discussed solutions to improve the effectiveness of their Boards of Control, as well as their inspection and internal audit at the credit institutions functions.
An overview of the Conference
Toward the end of the Conference, Governor Nguyen Thi Hong emphasized the necessity of paying attention to theimportance of internal control, audit and inspection at the credit institutions; . She stressed the need to ensuring ensure adequate the human resources and the infrastructure for these functions and to provide internal control, audit and inspection; providing complete, accurate, and timely information, data, and operational reports to the Boards of Control, the Internal Audit Divisions, or the internal inspection and supervision departments. This will enable in order to help them to effectively fully performcarry out their assigned duties and responsibilities in supervising the credit institutions’ compliance with the relevant regulations, etc.
The SBV Governor also urged requested the Boards of Control to continue enhancing promoting their roles, responsibilities, and authority in inspecting and controlling the reports sent submitted to the SBV; strictly comply with the reporting regime as prescribed, ensuring the timelines, the quality, the accuracy, the completeness, and the update of the data and information in the reports, etc.
Le Hang