Presenting the Report on explanation, acceptance and revision of the draft Law on Credit Institutions (amended), Chairman of the National Assembly's Economic Committee Vu Hong Thanh said that at the 6th Session, National Assembly Deputies (NADs) continued to give opinions on the draft Law on Credit Institutions (amended).
Immediately after the session, the National Assembly Standing Committee (NASC) directed the Agency in charge of verification, the Agency in charge of drafting and relevant agencies to coordinate closely, study carefully, and be responsible in absorbing, revising and explaining the opinions of National Assembly deputies and relevant agencies and organizations to complete the draft Law to ensure the requirements for restructuring the credit institution system according to the Party's policies and the National Assembly Resolution;
Ensuring the socialist-oriented market principle; having inheritance; ensuring consistency in the legal system, in accordance with accounting standards and international practices; enhancing the autonomy and self-responsibility of credit institutions; increasing the resilience of the credit institution system; strengthening the inspection, examination and supervision of banks.
The draft Law after being accepted and revised includes 15 chapters and 210 articles (7 more articles than the draft Law submitted to the National Assembly at the 6th Session).
Chairman of the National Assembly's Economic Committee Vu Hong Thanh.
On January 14, 2024, the Standing Committee of the National Assembly issued Report No. 725 on receiving, explaining, and revising the draft Law on Credit Institutions (amended) to the National Assembly Deputies.
Regarding the organization and management of credit institutions (Chapter IV), there is a proposal to remove the phrase "qualified according to the regulations of the State Bank" in the paragraph "selecting an independent auditing organization qualified according to the regulations of the State Bank" in Clause 1, Article 59 of the draft Law.
The Government proposes to amend Articles 47 and 48 to increase the obligations of managers and operators and the right to suspend and temporarily suspend the State Bank; proposes to amend Clause 2, Article 51 to increase the minimum number of members of the Board of Supervisors of a commercial bank from 3 to 5 members. Incorporating the opinions of National Assembly deputies and based on the Government's proposal, the National Assembly Standing Committee shall act as prescribed in Articles 47, 48 and 51 of the draft Law.
Regarding Clause 1, Article 59, the Standing Committee of the National Assembly revised as follows: “Before the end of the fiscal year, credit institutions and foreign bank branches must select an independent auditing organization that meets the requirements prescribed by the Governor of the State Bank to audit financial statements and audit internal control activities for the preparation and presentation of financial statements in the following fiscal year”.
Regarding the entrustment and agency business, agency assignment (Article 113), taking into account the opinions of the National Assembly Deputies, the National Assembly Standing Committee revised the draft Law in the direction of supplementing the provisions in Clause 2, Article 113 and similarly in the articles corresponding to each type of credit institution as follows: "Commercial banks are allowed to conduct insurance agency activities in accordance with the provisions of the law on insurance business, in accordance with the scope of insurance agency activities as prescribed by the Governor of the State Bank".
Regarding the regulation on credit limit (Article 136), taking into account the opinions of the National Assembly Deputies, the National Assembly Standing Committee has revised the draft Law in the direction of stipulating a specific roadmap in Clause 1, Article 136 of the draft Law with a period of gradually reducing the credit limit within 5 years from the effective date of the Law to 2029 to ensure transparency and clarity, while avoiding sudden impacts on the operations of credit institutions and foreign bank branches, but still limiting the concentration of credit on one customer and one group of customers, increasing access to credit for other customers.
Receiving comments on the provisions on risk provisions (Article 147), the Standing Committee of the National Assembly has revised the draft Law in the direction that the Government prescribes the level of risk provisions, the method of risk provisions and the use of provisions to handle risks in the operations of credit institutions and foreign bank branches (Clause 3, Article 147) because these contents are related to the provisions on accounting regime, corporate income tax, etc.
Therefore, it is necessary to have the participation of other ministries and branches; for asset classification, which is a specialized content of the banking sector, it must be implemented according to the regulations of the Governor of the State Bank.
Scene of the meeting on the afternoon of January 15
Regarding Early Intervention of Credit Institutions and Foreign Bank Branches (Chapter IX), taking into account the opinions of National Assembly Deputies, based on the Government's proposal, the National Assembly Standing Committee has revised the draft Law in the direction of stipulating that the State Bank shall consider and decide to carry out early intervention when a credit institution or foreign bank branch falls into one or several cases, including the case of "a) The accumulated loss of a credit institution or foreign bank branch is greater than 15% of the value of the charter capital, allocated capital and reserve fund recorded in the most recent audited financial statement or according to the inspection and audit conclusion of a competent state agency and violates the minimum capital safety ratio" in Clause 1, Article 156...
The Standing Committee of the National Assembly also explained and accepted the regulations on special control of credit institutions (Chapter X). Accordingly, based on the opinions of National Assembly deputies and the Government's proposal, the Standing Committee of the National Assembly would like to accept and revise the draft Law in the direction of assigning authority to the State Bank to consider and decide to put credit institutions under special control when they fall under the cases specifically stipulated in the draft Law.
At the same time, in order to have a basis for handling special situations that may arise, inheriting the current Law on Credit Institutions, the draft Law stipulates: "In cases where it is necessary to ensure the safety of the credit institution system, social order and safety when handling credit institutions under special control, the Government shall decide on the application of special measures based on the proposal of the State Bank and report to the National Assembly at the nearest session".
Regarding the function of banking inspection and supervision (Chapter XIII), accepting the opinions of the National Assembly Deputies and on the basis of the Government's proposal, the National Assembly Standing Committee accepted to revise the draft Law in the direction of stipulating: "The State Bank has the authority to inspect, examine and supervise credit institutions, foreign bank branches and foreign representative offices according to the provisions of the Law on the State Bank of Vietnam and other relevant provisions of law" in Clause 1, Article 207. At the same time, the National Assembly Standing Committee requested the Government, the State Bank, the Government Inspectorate, relevant ministries and branches (Ministry of Finance) to continue to have solutions to strengthen and improve the effectiveness of inspection, examination and supervision work, ensuring that credit institutions operate healthily, increasing the effectiveness and efficiency of the Law when promulgated.
Regarding the provisions on the Implementation Provisions (Chapter XV), the draft Law submitted to the National Assembly at the 6th Session stipulates that this Law takes effect from July 1, 2024. However, the Standing Committee of the National Assembly finds that the draft Law has many contents assigning detailed instructions and regulations, specifically the Government: 9 contents, the Prime Minister: 1 content, the State Bank: 28 contents.
At the same time, to give credit institutions time to prepare contents on governance, management and operation in accordance with the provisions of this Law after its promulgation and in sync with the effective date of a number of related laws such as the Law on Real Estate Business (in Articles 200 and 210), the Standing Committee of the National Assembly revised the Law to take effect from January 1, 2025.
In addition, the Standing Committee of the National Assembly also explained and accepted the opinions of National Assembly deputies related to handling cases of credit institutions being subject to mass withdrawals, special loans and lending (Chapter XI); handling bad debts and secured assets (Chapter XII); transitional regulations for Resolution No. 42/2017/QH14 (Article 210) ...
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