8 banks were inspected for investment in corporate bonds
Implement the Prime Minister’s direction in the public telegrams on strengthening management, supervision, inspection and examination of the stock market, corporate bond market, State bank directed the Banking Supervision Agency to strengthen inspection and examination of the situation and investment activities of corporate bonds of credit institutions in the system.
Accordingly, the Banking Supervision Agency has planned to inspect 8 commercial banks including Techcombank, HDBank, TPBank, SHB, PVComBank, VietBank, SeABank and Baoviet Bank.
By April, the inspection agency had conducted an inspection at 7 banks, except Baoviet Bank, because the Ministry of Finance had checked with this bank.
After the inspection, the supervisory inspection team reported to the inspection decision maker and submitted to the Governor of the State Bank a report on inspection results, supplementing the inspection contents of service provision activities related to investment in corporate bonds. business of credit institutions.
At the same time, the inspection results are also sent to the Commission Stock The State to handle violations related to the use of capital mobilized through the issuance of bonds by issuers.
Also in the first period of this year, the Banking Supervision Agency also carried out a specialized inspection with United Overseas Bank Vietnam (UOB) One Member Limited Liability Bank and inspected the implementation of the provisions of the law on banking , anti-corruption for the State Bank of Lang Son, Nam Dinh Branch.
According to the inspection agency, specialized inspection activities are aimed at detecting loopholes and inadequacies in the management, administration, mechanisms, policies and regulations of the monetary and banking laws. thereby recommending competent authorities to correct, amend, supplement and complete mechanisms, policies, and legal regulations.
At the same time, the inspection also aims to prevent, detect and promptly handle risks that may cause unsafety in credit institution operations.
Previously, in late 2021 and early 2022, the Prime Minister issued many directives on strengthening management, supervision, inspection and inspection of the stock market, corporate bond market and strengthening shocks. to regulate bond market activities together with measures to stabilize the market.
In particular, the Prime Minister requested the State Bank to assume the prime responsibility for, and coordinate with relevant agencies, strengthen inspection and examination of the situation and investment activities of corporate bonds of credit institutions, promptly detect, warn of risks and take remedial measures according to regulations, ensuring the safety of the credit institution system.
The request was made in the context that banks are often in the group of enterprises with the largest bond issuance and investment balance in the market.
As in April, out of 23 private corporate bond issuances with a value of 16,472 billion VND, up to 14,940 billion (91%) are bonds issued by commercial banks. In which, MBBank leads with 4,600 billion VND 3-year bonds and Sacombank behind with 2,500 billion VND.
In addition, in the Government’s report to the National Assembly, by the end of March, the total balance of investment in corporate bonds of credit institutions was 326,500 billion VNDan increase of 19% compared to the end of 2021 and accounting for 2.95% of total credit outstanding.
In which, investment in corporate bonds for the purpose of construction and real estate business is 124,800 billion, up 29% compared to the end of 2021, accounting for 38% of the total balance of investment in corporate bonds.
Besides, the bond balance for the purpose of increasing capital is 101,500 billion VNDincreased by 7% compared to the end of last year and accounted for nearly 32% of the total balance of the whole system.
The financial statements of the first quarter of the above banking group also showed that the balance of investment in corporate bonds at most banks increased compared to the end of 2021. In which, Techcombank is the bank with the largest corporate bond investment balance in the market with more than 101,100 billion VND (including bonds issued by other credit institutions).
Compared to the end of 2021, the bank’s corporate bond investment balance has increased by nearly 22%. Similarly, the balance of investment in corporate bonds at banks such as TPBank also increased by 21% during this period, reaching over 53,000 billion VND; HDBank increased by 14%, reaching nearly 24,800 billion; SHB increased 148%, reaching more than 17,200 billion; SeABank increased by 35%, reaching nearly 6,200 billion VND…
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