Tightly manage banking operations

(Baonghean) -Recently, never before has bad information about the professional ethics of a number of bank staff been published and mentioned so much in the mass media as well as in official forums. And never before has banking business activities contained and potentially contained so many risks...

Discussing this issue with us, Mr. Nguyen Xuan Thong - Director of Vinh International Bank (VIB) Branch, shared: In addition to regular education, professional training, and orientation for staff, the previous person orienting the next person, we especially attach importance to strict regulations and rules in lending. Careful and serious from the Head Office. For the first year of operation of VIB Vinh Branch, the Branch Director was only allowed to approve loans of up to 500 million VND/customer. After 2 years of operation, the Branch Director was increased to a maximum loan approval limit of 1 billion VND/customer. And now, after 5 years of operation - VIB Vinh is the best branch of the VIB system nationwide, the Vinh Branch Director is only allowed to approve loans of up to 2.5 billion VND/customer, and other higher loan amounts must be submitted to the Head Office for approval.

Transaction activities at VIB International Bank, Vinh branch.

Currently, violations of professional ethics in the banking industry have occurred in capital mobilization and credit activities. In capital mobilization, employees borrow money from depositors at the same interest rate as the bank's deposit interest rate to use for various purposes; Taking advantage of loopholes to issue fake savings books for bad purposes (real books but no money); Tellers receive money from depositors, then still make a savings book normally but do not enter it into the system, leaving both documents and money out for spending (usually done with customers who deposit for long terms). Only when customers bring the book to withdraw money does the bank discover it, at which point the teller may have already run away...

Regarding credit: Credit officers borrow from customers to use for various purposes; Borrow money from customers or acquaintances to re-lend at high interest rates to enjoy the difference; Take advantage of the reputation of bank officers and banks to receive deposits or loans for personal gain; Credit officers use personal money to lend more to customers if they see that the customers are good, safe and have great needs; Collude with credit brokers, provide false information on the submission to get approval from leaders to share the percentage of customers' loans with credit brokers;

Currently, bad debt at credit institutions in Nghe An accounts for about 2% of total outstanding debt. However, bad debt has been set aside by banks for risk and reserve. In recent times, some bank officials with poor morals have committed fraud, falsified loan documents to appropriate bank capital, causing public outrage and reducing people's confidence in the operations of some banks. Taking advantage of this situation, some cases have taken the opportunity to "fish in troubled waters" to compete unfairly, spreading false rumors such as "director of bank C, bank D absconded, customer N has a loan balance of 30 billion VND from banks in the area but spreads rumors of bankruptcy of 200 billion VND..." with the aim of bringing each other down... However, people should not worry about the safety of their deposits because of bad debt arising from bank A or B. Do not think that joint stock commercial banks are unsafe, deposit money in state-owned commercial banks, but choose the bank with the best service and convenient transactions. If people do not fully understand the nature, it may lead to an unnecessary transfer of capital, money flowing from one bank to another. This will make the already difficult capital more unstable for the banking industry. The important thing is how to make money circulate well in the economy. If capital is only concentrated in a few state-owned commercial banks, it is not necessarily good for the economy because it is not invested in a diverse way.

Regarding the two cases of fraud and capital appropriation at Eximbank Vinh Branch, Eximbank Vietnam is currently investigating and handling the relevant officers according to the level of violations. For now, the General Director of Eximbank Vietnam has decided to suspend 13 officers of Eximbank Vinh.

Mr. Dang Nam Hai has been temporarily detained by Nghe An Police and is under investigation. Eximbank Vinh is working with relevant agencies to investigate and handle bad debts and debts of fraudulent customers. Currently, Eximbank Vinh has a new CEO taking over, all business activities at this bank are still running normally. Any individual who violates the law, depending on the severity, will be handled according to the provisions of the law.

In order to promptly rectify and improve credit quality, the State Bank of Vietnam, Nghe An Province Branch, requires Directors of credit institutions and credit institution branches to strictly implement the following contents: "Review all outstanding loan records at their units to evaluate, classify debts and set up risk provisions in accordance with regulations, paying special attention to comparing customers with large outstanding debts, checking the legality of loan collateral; Units with bad debts higher than 5% of outstanding debts must have solutions and measures to recover debts for each customer, analyze the causes of bad debts and assign specific responsibilities to offending officers (if any); In cases of newly arising loans, credit institutions and credit institution branches need to pay attention to assigning relevant officers to work with customers to register secured transactions in accordance with regulations..."

Quynh Lan