THE STATE BANK OF VIETNAM
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SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No. 02/2006/CT-NHNN
Hanoi, May 23, 2006
 
DIRECTIVE
ON THE INTENSIFICATION OF RESTRAINING AND PREVENTIVE MEASURES FOR RISKS IN BUSINESS ACTIVITY OF CREDIT INSTITUTIONS
In the first months of the year 2006, monetary, credit and banking activity keeps developing that makes contribution to the monetary stability, inflation control and economic growth. Business activity of credit institutions, however, has been facing many difficulties, challenges due to shortcomings in operation scale, financial capacity and competitiveness, and adverse effect of some objective factors inside and outside the country.
With a view to preventing and restraining risks, assuring the prudence, efficiency and sustainability for the business activity of credit institutions, the Governor of the State Bank of Vietnam requests credit institutions and units of the State Bank to take following measures:
I. FOR CREDIT INSTITUTIONS
1. Evaluating, forecasting socio-economic conditions, domestic and foreign monetary market for the last months of the year 2006 and conditions of their business activity, on that basis, considering for an appropriate adjustment of their objectives, so as to efficiently carry out business activities.
2. Continuing to deploy solutions in the Directive No.02/2005/CT-NHNN dated 20 April 2005 of the Governor of the State Bank on the enhancement of credit quality, credit growth in line with the capacity of funds mobilization and risk control, assurance of system security and in other instructional documents of the Governor of the State Bank on the deployment of banking tasks in the year 2006.
3. Checking, correcting and completing internal procedures on currency trading, foreign exchange, payment, money transfer, informatics technology application in conformity with applicable provisions of related laws. Analysing risks that may occur in each operation procedure to immediately take restraining and preventive measures for risks such as: providing for the limit of loss stop for each foreign exchange trading staff; providing for the allocation, management of foreign currency position, levels for approving domestic and abroad sale, transfer of foreign currency for branches in the system; stipulating in details responsibility for the payment, money transfer, inspection, document archive; installing a software program for making immediate settlement of the foreign currency trading operation.
4. Verifying, selecting staff with sufficient capacity, standard, moral quality to perform operation activities; issuing an authorization mechanism, providing for responsibility of staff in charge and operating staff in line with the capacity and business experience of the staffs who have experienced training, challenges and the available material facilities. Enhancing the internal inspection, control, audit and new technology application for timely detection, prevention of violation and risks.
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