DNVN - On February 28, the State Bank Inspectorate of Binh Duong province issued a notice of inspection conclusion for Orient Commercial Joint Stock Bank, Binh Duong branch (OCB Binh Duong). Thereby, a series of violations and shortcomings of this bank were clearly pointed out by the inspection agency.
According to the inspection results, OCB Binh Duong has made efforts to implement solutions to increase credit growth, deploy support policy programs, and restore the economy according to the Party's policies and the laws of the State and the banking industry.
Basically, OCB Binh Duong complies with the provisions of the law and the banking industry on interest rates in lending activities, bad debt handling and off-balance sheet debt recovery after handling risks. Comply with the provisions on insurance agency activities, exchange rates in foreign currency trading activities, and regulations on overseas money transfers. At the same time, comply with the provisions on anti-money laundering and anti-terrorist financing.
OCB Binh Duong Bank has had many shortcomings and violations in the appraisal and supervision of customer loan applications.
However, OCB Binh Duong still has limitations that need to be reviewed to overcome and correct to limit possible risks.
Specifically, for lending activities, OCB has not issued internal regulations on "Other legal entities and individuals with potential risks to operations". OCB Binh Duong's overdue debt transfer notice does not fully comply with regulations. In addition, OCB's T24 system has not fully automatically tracked customers' debt repayment probation period.
In addition, the branch has not really paid attention and closely monitored the loan capital and the customer's business situation. The granting of credit to customers for consumer loans (purchase of household items) with a large amount of over 100 million VND, the documents proving the purpose of the loan use are only delivery receipts/invoices/list of goods.
OCB Binh Duong appraised and approved a loan for a customer with a 12-month grace period for principal repayment without any evidence. The appraisal and approval of a loan for capital needs to pay for real estate transfer costs/compensate for real estate transfer are based only on the value on the loan papers/deposit contracts provided by the customer, not based on the value of the transfer on the notarized transfer contract.
Not only do the general problems exist, the State Bank of Binh Duong Province's Inspection and Supervision also shows that OCB Binh Duong still has the following specific violations:
The loan application is not strict, the documents related to the loan are not unified, and the information is not fully recorded. OCB Binh Duong has not yet collected/not fully collected the loan application. The appraisal of capital needs is not appropriate/does not have sufficient basis, and the documents proving the source of debt repayment have not been fully collected.
The assessment of the customer's financial situation and debt repayment sources is not strict, the debt repayment period is not suitable for the customer's income source, the assessment of the customer's loan source is not suitable, and some other errors related to the assessment.
OCB Binh Duong has not fully inspected and monitored loan capital and customers' financial situation according to internal regulations, and has not collected/not fully collected documents proving capital use.
At the same time, the branch/customer has not complied with the conditions of credit approval, lacked supervision of payment for each input partner, each economic contract, each invoice, ensuring that the financing does not exceed the invoice value, contract value. OCB Binh Duong has also not monitored the financing invoices for each economic contract, each beneficiary to avoid duplicate financing.
In addition, the inspection agency said that the content of the regulations on money transfer and foreign currency transfer abroad for individual customers is not in accordance with the regulations. The collection of customer identification information when opening a payment account is also not complete.
In addition to the objective causes of violations, such as the impact of the COVID-19 pandemic, geopolitical conflicts, the period of personnel inspection with many changes, young staff lacking experience, the T24 system not being completed, OCB and OCB Binh Duong also have many subjective causes such as: Not thoroughly complying with regulations on lending, bad debt handling, collecting customer identification information, not being thorough in appraisal, inspection, control before and after lending.
The work of checking and supervising credit granting has not been focused on and has not been seriously implemented. There is a lack of measures to manage cash income from customers. The provision of banking services and capital to many customers, but the control work is not thorough and strict, leading to violations and errors in operations at the unit.
According to the State Bank of Binh Duong Province's Inspection and Supervision Agency, the Credit Council at OCB's Headquarters and areas, the re-appraisal department, the debt settlement department, the branch management board, transaction offices, departments, operations and related individuals must be held responsible for the above violations.
In addition, this agency also made many recommendations to the General Director of OCB, the Board of Supervisors of OCB and the Director of OCB Binh Duong to overcome violations and improve the quality, efficiency and safety of the bank's operations.
Duy Khanh
Source: https://doanhnghiepvn.vn/kinh-te/thanh-tra-ngan-hang-chi-loat-ton-tai-vi-pham-tai-ngan-hang-ocb-binh-duong/20250301124837394
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