Vietnam's State Bank found guilty of violating protocol

The State Bank of Vietnam has been found guilty of violating regulations regarding inspections, settlement of complaints and anti-corruption efforts, according to the Government Inspectorate.

In its report, the inspectorate said the bank's remote monitoring had failed to detect potential risks to credit institutions or fulfill its role as an early warning system.

“The credit system faces many potential risks but the State Bank has failed to come up with a solution to deal with them, resulting in plans having to be adjusted passively every year,” the report stated.

The Government Inspectorate also discovered violations made by the bank's inspection and supervision agencies in Hanoi and Ho Chi Minh City between 2010 and June 2015.

In some cases, the agencies were over-zealous, while in others they were negligent and did not punish violators in accordance with the law.

The State Bank was also assessed to have failed to deal with credit institutions that are in danger of insolvency. While many credit institutions have not followed regulations, the State Bank has fallen short of detecting, preventing or dealing with these violations. 

Regarding anti-corruption efforts, the State Bank's guidelines on the declaration and disclosure of assets do not follow government regulations, resulting in delayed and inaccurate annual reports.

In response, the Government Inspectorate has asked the prime minister to instruct the State Bank to review and revise its regulations and guidelines on inspection and anti-corruption efforts. The State Bank's governor has also been instructed to take disciplinary action against groups and individuals listed in the Government Inspectorate's report.

Additionally, the State Bank's provincial and municipal units have been instructed to closely monitor the implementation of the Government Inspectorate's recommendations, and to report all suspected criminal activities in accordance with the law.