(TBTCO) – The State Bank of Vietnam has issued Circular 14/2023/TT-NHNN regulating the internal control system of non-bank credit institutions and this content will take effect from 2024.
Subjects applying Circular 14 include non-bank credit institutions including financial companies and financial leasing companies; Organizations and individuals related to the internal control system of non-bank credit institutions.
|Non-bank credit institutions must implement new regulations on internal control. Photo: TL
|There will be new regulations on commercial banks’ operating networks. Prepare to apply new regulations on large value transactions that must be reported.
According to Circular 14, the internal control system is a set of mechanisms, policies, processes, internal regulations, and organizational structure of non-bank credit institutions built in accordance with the provisions of Circular 14. Law on Credit Institutions, this Circular and relevant legal regulations. This system is organized to control, prevent, detect, and promptly handle risks and achieve set requirements. The internal control system performs senior management supervision, internal control, risk management and internal audit.
Supervision by senior management is the supervision of the board of directors, board of members, general director (director) of internal control, risk management and supervision of the organization’s control board. Non-bank credit for internal audit.
Credit risks that are required to be controlled are risks due to customers’ failure to perform or inability to perform part or all of their debt repayment obligations under contracts or agreements with non-bank credit institutions. . In which, customers (including credit institutions and foreign bank branches) have relationships with non-bank credit institutions in receiving credit (including receiving credit through entrustment). ), receive deposits, issue corporate bonds./.