The Banking inspection and supervision of the State Bank of Viet Nam and some recommendations

Abstract

In the recent years, the banking inspection and supervision of the State Bank of Viet Nam (SBV) has been acknowledged being renewed and strengthened, improving the legal system with regards to banking safety, increasing the quantity as well as the quality of supervisions, which be contributed to the reconstruction, non-performing loan (NPLs) resolution and strengthening cross-ownership control at credit institutions in order to contribute significantly to the renewal and development of the banking industry, ensuring the safety and the whole development of credit institutions and the financial system. 

However, there are still many inadequacies and limitations in the banking inspection and supervision which related to: not high quality regarding to remote supervisation of SBV, undefined the potentially systemic risk for credit institutions, unsupported the system alert function, the problem of the combination between the remote supervision and the spot inspection, organization of inspection apparatus, qualification of inspectors… This study will estimate the banking inspection and supervision in the period from 2011 to 2017, as the result of this the writer will give some recommendations for SBV