According to Conclusion No. 289/TB-TTRA dated July 24, 2024, during the inspection period, Vietbank Long An operated relatively stably, indicators on capital sources and capital use increased over the years, and business results were profitable. Vietbank Long An basically complied with the regulations of the State Bank of Vietnam and legal provisions on capital mobilization activities; opening and using payment accounts, credit cards and providing payment services; anti-money laundering; anti-terrorism financing; anti-weapons financing; insurance agency activities.
However, a series of violations were also discovered by the bank inspectors, although not serious, but led to some risks in the unit's lending, the bad debt ratio increased higher than the recommended level of the State Bank.
Specifically, violations of lending and borrowing principles: Customers used loans for purposes other than those committed to the unit, violating the provisions of Clause 2, Article 4 of Circular No. 39/2016/TT-NHNN (and other amended and supplemented documents). The reason is said to be that customers did not fully understand their responsibilities when borrowing capital. Vietbank Long An inspected the use of loans by customers but did not properly assess the actual situation of capital use, and did not detect cases where customers used capital for purposes other than those intended. According to the decision, this issue is the direct responsibility of the customer who borrowed capital and used capital for the wrong purpose; the person assigned to inspect and supervise the loan; and the general responsibility of Vietbank Long An's leadership in management.
Violations in appraisal and lending decisions: Vietbank Long An's appraisal and approval of loans were not strict, violating the provisions of Clause 1, Article 17 of Circular No. 39/2016/TT-NHNN. The banking inspectorate pointed out that Vietbank Long An had not fully recognized and fulfilled its responsibilities in appraisal and approval of loans. The ability to analyze and evaluate of appraisal officers was limited, and internal regulations were not strictly followed, leading to violations. In addition, customers engaged in small-scale production and business activities with low professionalism had difficulty in preparing and providing documents proving eligibility for loans to banks.
Violation of loan term: Vietbank Long An has not fully recognized its responsibilities in loan appraisal and approval, its ability to analyze and evaluate is limited and it has not strictly complied with internal regulations. This leads to the branch violating the provisions of determining loan terms that are not consistent with the business cycle, capital recovery period, and customer repayment capacity, violating the provisions of Clause 1, Article 28 of Circular No. 39/2016/TT-NHNN.
Violation of loan level: Vietbank Long An's loan level assessment was not consistent with the customer's capital usage plan, violating the provisions of Article 12 of Circular No. 39/2016/TT-NHNN. The cause was determined to be that Vietbank Long An did not fully understand its responsibilities in loan assessment and approval, had limited analysis and evaluation capabilities, and did not strictly comply with internal regulations, leading to violations.
Violation of loan application documents: Vietbank Long An did not collect enough information and documents related to the customer's debt repayment source and capital usage plan as a basis for appraisal and loan decision, violating the provisions of Clause 1, Article 94 of the Law on Credit Institutions 2010, amended and supplemented in 2017, Clause 1, Article 102 of the Law on Credit Institutions 2024 and Clause 1, Article 9 of Circular No. 39/2016/TT-NHNN (amended and supplemented in 2024). The banking inspectorate determined that the customer was at fault for not fully understanding the responsibility in providing complete loan application documents to the bank. However, the officers in charge of collecting documents did not seriously comply with the regulations in collecting related documents as a basis for consideration, appraisal and loan approval.
Violations in the inspection of loan use: Vietbank Long An has not strictly inspected and supervised the use of customers' loans according to Vietbank's internal regulations, and has not fully implemented the provisions of Clause 3, Article 94 of the Law on Credit Institutions 2010, Clause 5, Article 102 of the Law on Credit Institutions 2024 and Clause 2, Article 24 of Circular No. 39/2016/TT-NHNN (and other amended and supplemented documents). The reason is that the inspection and supervision of loan use by customers has not been carried out by bank branches in a thorough and formal manner. In addition, most individual customers or small-scale production and business households have difficulty in providing documents proving the purpose of using loans according to regulations.
In addition to the above violations, the State Bank of Region 13 also pointed out existing problems, limitations, and potential risks for Vietbank Long An. In particular, the branch established a Mortgage Contract for property rights arising from the Land Use Rights (LUR) Transfer Contract, and agreed on a value of secured assets (LSA) with the customer much higher than the transfer price of LUR stated in the notarized LUR transfer Contract and the customer's Deposit Contract. In addition, the Long An branch of Vietbank seized secured assets that were not in accordance with Vietbank's internal regulations, posing potential legal risks.
Based on the results of the inspection, verification and conclusion mentioned above, the Chief Inspector of the State Bank of Vietnam, Region 13, requested the Director of Vietbank Long An to organize a meeting to review, rectify and draw lessons for the collectives and individuals related to the violations, shortcomings and risks regarding the existing contents, and at the same time implement 4 recommendations and 3 recommendations to overcome the shortcomings and limitations in order to continue to maintain safe, effective and legal operations.
Source: https://doanhnghiepvn.vn/kinh-te/tai-chinh-ngan-hang/thanh-tra-ngan-hang-chi-loat-vi-pham-cua-vietbank-long-an/20250730042549299
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