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Tuesday, June 18, 2024

SBV asks Eximbank to ward off interest groups

By Hai Ly

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HCMC – The inspection and supervision body under the State Bank of Vietnam (SBV) has requested to Eximbank to exercise caution and integrity in its management and operations to ward off interest groups.

In document No. 2666 sent to Eximbank, the inspection and supervision body urged the board chairman and members to strictly adhere to the Law on Credit Institutions, relevant laws, and Eximbank’s Charter in a cautious and honest manner for the benefit of the bank and its shareholders.

On June 21, 2023, the Board of Directors (BOD) of Eximbank held an extraordinary meeting with an aim to dismiss the board chairman and the general director of the bank and elect new leadership. However, the meeting could not proceed due to the absence of two out of five members of the BOD, which did not meet the legal requirements for conducting a meeting.

The second extraordinary meeting of the BOD is scheduled to take place on June 28, 2023, provided that all conditions are met.

A central bank representative stated that the central bank’s examination body is closely supervising the case of Eximbank. Under the current regulations, the positions of board chairman, board members, and general director require prior approval from the SBV.

Before electing or replacing these positions, commercial banks are required to notify the SBV in advance to obtain feedback, added the representative.

Since October last year, there have been multiple changes in the major shareholder structure of Eximbank. In the recent document sent to Eximbank, Deputy Chief of Bank Inspection and Supervision Le Quang Huy emphasized that the board chairman and members of the board need to take full responsibility under the law and before the SBV Governor for the management and operations of the bank.

The incident involving Saigon Joint Stock Commercial Bank (SCB) highlighted the need for the consolidation of the Vietnamese banking system. The SBV’s strict supervision of Eximbank underscores the importance of preventing and addressing issues in a timely manner to ensure the safety of the entire banking system and financial market.

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