DNVN - Recently, the Inspectorate and Supervisory Board of the State Bank of Vietnam (SBV) of Dak Lak province announced the conclusion of the inspection of the Vietnam Export Import Commercial Joint Stock Bank (Eximbank) - Dak Lak branch. The inspection results showed many violations and limitations in the credit granting activities of this bank branch.
Through examining the credit application files of 33 customers borrowing capital from Eximbank Dak Lak as stated in Inspection Decision No. 01/QD-TTGSNH dated November 27, 2024, the inspection team found that Eximbank Dak Lak had granted credit to customers to repay loans early at the Power Finance Joint Stock Company. However, this process revealed many shortcomings, did not fully comply with internal regulations as well as regulations of the State Bank, increased risks and violated regulations on lending to repay loans early at other credit institutions.
Specifically, this bank violated the State Bank's regulations on loan terms when granting credit to 27 customers with loan terms extending to 2032, while previous loans at the Power Finance Joint Stock Company were only valid until 2027. This is contrary to the provisions at Point b, Clause 6, Article 8 of Circular 29/2016/TT-NHNN dated December 30, 2016 of the State Bank on lending activities of credit institutions.
In addition, Eximbank Dak Lak has not properly and fully implemented the appraisal process according to internal regulations, leading to many potentially risky loans. In which:
Eximbank Dak Lak did not fully assess the ability to meet the loan conditions according to the regulations of the State Bank and internally. As a result, 29 customers who did not meet the conditions of profitable business operations and no accumulated losses in the last two years were still granted credit, violating Clause 2, Article 3 of the Regulations on refinancing lending for enterprises in Decision 10989/2022/EIB/QD-TGĐ dated December 30, 2024 of the General Director of Eximbank.
Eximbank Dak Lak has determined the loan amount based on the value of the collateral, which is a system of machinery and equipment for electricity production that has been used for 4 years, which is a high-risk asset group according to internal regulations. However, the lending rate is higher than the standard level according to Decision 73/2024/EIB/QD-HDQT dated March 13, 2024. This increases the risk of capital loss because the actual value of the asset may be lower than the valuation when lending.
In addition, the loan approval of the Eximbank Dak Lak High-Level Credit Council did not ensure the principles of accuracy, objectivity, publicity and transparency according to the Regulations on the organization and operation of the credit council, stipulated in Decision No. 451/2023/EIB/QD-HDQT dated November 15, 2023. Notably, 2/3 of the members of this council were related to the violating loans (according to the minutes of the council's meeting).
In addition, Eximbank Dak Lak also refinanced 27 loans at the Power Finance Joint Stock Company, although these loans had previously been refinanced at BIDV Son Tay and Nam A Commercial Joint Stock Bank with a loan term until 2027. Notably, the bank also lent an additional VND135 billion (equivalent to VND5 billion/customer), with a term extended to 2032, increasing the risk.
According to the bank inspector and supervisor, at the time Eximbank Dak Lak appraised the loan in June 2024, the funded solar power projects had been operating for about 3.5 years, equivalent to 50% of the payback period according to the original plan. According to the survey, the actual value of solar power projects in Dak Nong fluctuated from 13-14.5 billion VND/MW, the fixed asset value of the remaining project was lent an additional 5 billion VND (offset) by the Electricity Finance Joint Stock Company.
Thus, the loan refinanced by Eximbank Dak Lak will be equivalent to the remaining value of the solar power generation project (the remaining equity of customers participating in investing in machinery and equipment systems for electricity production is insignificant), leading to the risk of capital recovery of the project mainly belonging to Eximbank Dak Lak.
According to the inspection conclusion, the main cause of violations stemmed from the lack of compliance by responsible individuals in the process of loan appraisal, control and approval.
In which, the individuals involved include: Customer Relations Officer, Head of Corporate Customer Department and Director of Eximbank Dak Lak responsible for credit appraisal and proposal.
Appraisers, department heads and the Director of the Appraisal Center at the Head Office are responsible for re-appraising and recommending loan approval.
The Chairman, Vice Chairman and members of the Senior Credit Council are responsible for approving unsecured loans.
In response to these violations, the State Bank Inspectorate has requested the Board of Directors of Eximbank to consider and strictly handle the violating groups and individuals according to the bank's internal regulations. Handling the violations in the refinancing lending activities of 27 customers is necessary to minimize risks and ensure compliance with legal regulations.
Duy Loc
Source: https://doanhnghiepvn.vn/kinh-te/thanh-tra-chi-loat-sai-pham-cua-eximbank-dak-lak-hang-tram-ty-dong-tin-dung-tiem-an-rui-ro/20250213012030905
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