Binh Thuan State Bank fined 143 million VND for administrative violations against 5 units

On January 10, the State Bank of Vietnam - Binh Thuan Provincial Branch (SBV) held a conference to review activities in 2023 and deploy tasks for the banking sector in 2024.

According to the report of the provincial State Bank, inspection and supervision work is focused, restructuring of credit institutions (CIs) and handling of bad debts are being implemented, ensuring that the banking system in general and the people's credit fund (PCF) system in particular develop safely, without incidents causing insecurity and disorder in the area...

In 2023, the provincial State Bank issued 13 warning documents (7 documents for banks; 6 documents for QTDND) and requested explanations from violating units to promptly rectify and ensure operational safety.

Finance - Banking - State Bank of Binh Thuan fined 143 million VND for administrative violations against 5 units — Customers borrow capital at Agribank. (Photo: NT).

As of November 30, 2023, mobilized capital reached VND 56,603.5 billion, an increase of 7.32% over the beginning of the year (the same period last year increased by 7.79%); total outstanding loans in the area reached VND 85,611.6 billion (excluding loans from credit institutions outside the area), an increase of 7.19% over the beginning of the year (the same period last year increased by 5.8%); credit structure shifted towards increasing outstanding loans for the trade, service, agriculture, forestry and fishery sectors in line with the orientation of restructuring local economic sectors.

Of which, outstanding loans in VND reached VND 84,166.5 billion, accounting for 98.3% of total outstanding loans; outstanding short-term loans reached VND 53,679.8 billion, accounting for 62.7% of total outstanding loans.

Outstanding loans classified by interest rates: interest rates less than or equal to 6%/year account for about 2.68% of total outstanding loans, interest rates from 6-7%/year account for about 2.97% of total outstanding loans, interest rates in the range of 7-9%/year account for 26.46% of total outstanding loans; interest rates from 9-12%/year account for about 49.58% of total outstanding loans, interest rates above 12%/year account for about 18.3% of total outstanding loans.

Regarding the inspection, supervision and examination of banks; in 2023, the provincial State Bank conducted 12 inspections, achieving 100% of the inspection plan for 2023; inspected 6 treasury safety inspections; inspected compliance with regulations on foreign exchange agency activities of 8 foreign exchange agency enterprises.

Based on the violations detected through inspection, administrative fines were imposed on 5 units with the amount of 143 million VND. At the same time, there were 134 recommendations, of which 92 were resolved and 42 were not resolved due to not being due.

In addition, conduct forensic examination of credit records at commercial banks under the direction of the State Bank of Vietnam. In conjunction with inspection activities, continue to monitor and handle post-inspection recommendations for credit institutions.

In 2024, implement the lending program for the market stabilization program during the upcoming Lunar New Year according to the direction of the Provincial People's Committee.

Organize the implementation of the Project on restructuring the system of credit institutions associated with bad debt settlement in the period 2021-2025, the action plan of the banking industry to implement the Project and guiding documents of the State Bank.

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