ANTD.VN - The Banking Inspection and Supervision Agency has warned of risks regarding the share ownership ratio of shareholder groups at a joint stock commercial bank; at the same time, it pointed out that this bank has a high level of credit concentration on large customers, and that there are some violations in credit granting...
Risks of equity ownership, credit to large customers
Department of Banking Inspection and Supervision 1 (Department 1) of the Banking Inspection and Supervision Agency (under the State Bank) has just issued a notice of inspection conclusion of Kien Long Commercial Joint Stock Bank (KienlongBank).
According to the inspection conclusion, KienlongBank's business activities have achieved some positive results such as: bad debt ratio maintained at a low level, business results increased compared to previous years...
However, the Banking Inspection and Supervision Agency also pointed out many limitations and violations of KienlongBank.
Regarding the issuance of internal regulations, the inspection results showed that there were existing regulations on credit scoring, customer ranking, and some risks in the issuance of internal regulations on credit granting activities for KienlongBank's customers.
Regarding the share ownership ratio, purchase and transfer of shares of Kienlong Bank shareholders, the inspection results have not detected any shareholders, shareholders and related persons according to the law exceeding the ownership ratio according to the law.
However, the inspection results have warned of risks regarding the share ownership ratio of shareholder groups. Shareholders in the group are not considered shareholders and related persons as prescribed in the Law on Credit Institutions, but have had relationships of interests and economic relations.
Regarding credit granting activities for large customer groups, the inspection results show that the bank has a high level of credit concentration, credit granting to customers has some violations, problems in credit granting conditions, credit appraisal and approval; loan term; loan inspection and supervision; collateral; loan approval process implementation, customers do not meet internal regulations on conditions for issuing UPAS L/C...
KienlongBank has not complied with the reporting deadline as prescribed by law on anti-money laundering and anti-terrorism financing for a number of large cryptocurrency transactions.
The inspection conclusion also issued a number of risk warnings in lending activities, bond investment, and issuance of UPAS L/C for customers.
The Banking Inspection and Supervision Agency also said that the direction, management, supervision and internal audit work has not yet promptly detected and fully assessed violations, problems and risks in credit granting activities as stated in the inspection and examination results, thereby having drastic and appropriate handling measures, risk management and ensuring the safety of banking operations.
It is known that up to now, the bank has also overcome the warnings of the inspection agency.
Issued 2 penalty decisions
Regarding the causes of the above violations, the inspection conclusion stated that in addition to objective causes, there are also some subjective causes such as:
The work of directing, operating, supervising, and internal auditing of the bank still has some shortcomings as stated in the inspection results. The work of appraising and approving credit granting, checking, and supervising loans for some customers still has some violations, shortcomings, and is not effective, in compliance with legal regulations, and ensuring control of credit granting risks.
Some individuals and functional departments at KienlongBank branches have not seriously complied with the provisions of the law, the State Bank and KienlongBank's internal regulations.
In addition, some loan customers do not comply with and implement the provisions of the law and the State Bank in their loan relationship with the Bank.
The Banking Inspection and Supervision Agency also pointed out the responsibilities for administration, management, inspection, and control when violations and problems mentioned in the Inspection Conclusion occurred.
Individuals directly related to the violations and shortcomings mentioned in the Inspection Conclusion are responsible for advising, deciding, monitoring, managing, and inspecting each case of violation and shortcomings.
After the inspection, Department 1 issued a Decision to sanction administrative violations in the field of banking and currency against KienlongBank for 2 administrative violations: Granting credit to organizations and individuals who do not meet the conditions prescribed by law (By December 5, 2024, all customers with violations had paid off their loans at KienlongBank);
And the violation: Not reporting on time as prescribed by law on anti-money laundering and anti-terrorism financing (KienlongBank has corrected and sent full and accurate reports for these transactions).
Source: https://www.anninhthudo.vn/canh-bao-mot-so-ton-tai-han-che-tai-mot-ngan-hang-thuong-mai-co-phan-post603234.antd
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