State Audit named the bank that voluntarily granted credit in excess of the permitted limit

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The State Audit has just released a summary report on audit results in 2020; this includes activities related to the management and use of state capital and assets in 2019 of the State Bank of Vietnam, 4 financial institutions, banks, insurance and in 2018 of the Bank for Social Policies.

According to the State Audit Report, in 2019, the State Bank of Vietnam operated a proactive and flexible monetary policy, contributing to controlling average inflation at 2.79%, stabilizing the macro economy. , supporting economic growth, stabilizing the currency and foreign exchange markets; reduce the operating interest rate 2 times. Audited financial institutions, banks and insurance companies ensure safety indicators in their operations, profitable business, and achieve the target of a bad debt ratio of less than 2% on the balance sheet.

However, some credit institutions have exceeded the maximum allowable credit growth such as the Public Commercial Joint Stock Bank (PVCombank) exceeding VND 13,656 billion; Saigon Commercial Joint Stock Bank (SCB) exceeded 8,654 billion dong; Bao Viet Commercial Joint Stock Bank exceeded 3,153 billion VND; Shinhan Bank exceeded 132 billion VND; Mizuho Ho Chi Minh Bank exceeded 192 billion dong; Busan Bank – Ho Chi Minh Branch exceeded 83 billion VND; Vietnam – Russia Joint Venture Bank exceeded 69 billion VND.

The audit also pointed out that, except for the cases in 2020, banks have fully made provisions or have paid off loans, so the State Audit has not adjusted to reduce the cost of credit risk provisions at Vietcombank 1,940, 2 billion dong, not adjusted to increase credit risk provision expense at Agribank 1,357.58 billion dong. The audit results also adjusted to reduce provision expense at Vietcombank by VND 183.87 billion, increase provision expense at Agribank by VND 97.16 billion.

The State Audit believes that banks still have many limitations such as lack of rigorous appraisal, periodically not re-evaluation of collateral, cash disbursement without or lack of documents proving the purpose of using loans; not controlling and closely monitoring the use of loans.

The State Bank manages to achieve the objectives assigned by the National Assembly.

In addition, the State Audit also emphasized that the State Bank stipulates the determination of the value of collateral assets, and the accounting for the value of financial leasing assets is not appropriate.

Specifically, the determination of the value of security assets for financial leasing according to Circular No. 02/2013/TT-NHNN dated January 21, 2013 is not based on the actual fair value of the asset but depends on outstanding loan balance, does not reflect the true nature of the security asset.

Some credit institutions have exceeded the maximum allowable credit growth such as the Public Commercial Joint Stock Bank (PVCombank) exceeding VND 13,656 billion; Saigon Commercial Joint Stock Bank (SCB) exceeded 8,654 billion dong; Bao Viet Commercial Joint Stock Bank exceeded 3,153 billion VND; Shinhan Bank exceeded 132 billion VND.

At the same time, the accounting, monitoring and recording of the value of financial lease assets at their original cost according to the provisions of the Consolidated Document No. The value of the leased asset decreases gradually and is transferred to the lessee at the end of the lease term.

As for the Bank for Social Policies, the State Audit of Vietnam assessed that this unit wrote off debts of VND 19.44 billion for many customers who were considered missing as confirmed by the commune government, not in accordance with the provisions of Civil Code 2015.

In which, there are 17 cases of still paying social insurance premiums; adjusting the capital plan of the poor ethnic minority loan program in time, resulting in 3,135 cases of non-concessional interest rate of VND 2.56 billion in 2018 and 2019; applying the 12-month grace period for most loans to students who do not consy as prescribed in Decision 157/2007/QD-TTg (only applicable in cases where students who have not yet got a job/no income); the policy of reducing interest for students when repaying debts before the due date is still inadequate.

Regarding the application of information technology, the State Audit of Vietnam acknowledged that the Bank for Social Policies has not fully implemented the management of the information technology system in accordance with the orientations, plans and regulations of the State Bank. ; the management support capacity of the information technology system is not effective; have not fully implemented the regulations of the State Bank; The application of information technology to financial statements is still limited.

At Vietcombank, by the end of 2019, a number of financial accounting operations have not been fully automatically recorded on information technology systems, some credit rating scoring data has not been comprehensively reviewed based on on the entity’s available data sources.

Source: ndh.vn – Translated by fintel.vn