The Van Thinh Phat case shows a lesson in controlling bank cash flow.

On the afternoon of November 23, the National Assembly discussed in the hall the draft Law on Credit Institutions (amended).

Delegate Pham Van Hoa ( Dong Thap delegation) agreed with the revision of regulations related to ending cross-ownership, manipulation, and domination of banks because this is a very important issue.

In fact, some of our banks have been caught up in the past. According to the delegate, it is important for banks to monitor and pay attention to cases where the bank owners are large enterprises. For this group, it is necessary to specifically consider the percentage of shareholders of the owners.

In those banks, people's deposits do not reach the borrowers or businesses in need. Those who need to borrow have a hard time, but shareholders and owners of these banks can borrow very easily.

"If we do not take timely precautions and stop it, the possibility of SCB happening is very high," Mr. Hoa said and suggested that the State Bank needs to pay more attention because according to the information he has, currently, there are banks owned by business owners, which need to be carefully considered to ensure safety.

"Don't say the credit limit is reduced to 10% or 15%. For example, if 10% is allowed but dozens of shareholders borrow 10%, how much money will it add up to? It is very dangerous for them to withdraw money at the same time. We suggest paying attention to this area," Mr. Hoa emphasized.

Finance - Banking - The Van Thinh Phat case shows a lesson in controlling bank cash flow — Delegate Pham Van Hoa, Dong Thap delegation (Photo: Quochoi.vn).

Also mentioning this issue, delegate Trinh Xuan An ( Dong Nai delegation) emphasized that according to the Central Resolution and the National Assembly Resolution, we must not only handle but also end the situation of cross-ownership.

In fact, through the SCB case and the assessment of some current banks, delegates believe that there are 3 problems: cross-ownership, domination, manipulation of the credit system, the banking system, creating risks, extremely urgent problems that need to be handled to build strong developing banks.

Mr. An emphasized that cross-ownership, domination and manipulation of banks are very sophisticated and often invisible tricks.

“However, with this invisible and constantly changing object, we use tools as designed by the law such as reducing the share ownership ratio, reducing the credit limit and expanding the objects that are not allowed to hold positions... that is, we are using the visible to control the invisible. In my opinion, it is ineffective," said Mr. An.

According to Mr. An, it is important to determine which individuals and organizations are the real owners of the bank. Therefore, the law needs to develop regulations to determine which individuals and organizations have the power to control and influence decision-making in banking activities.

Finance - Banking - The Van Thinh Phat case shows a lesson in controlling bank cash flow (Figure 2). — Delegate Trinh Xuan An, Dong Nai delegation (Photo: Quochoi.vn).

To do this, delegate An proposed to regulate two specific issues: It is necessary to make transparent the personal information of organizations that are shareholders of commercial banks, instead of reducing the ownership ratio. It is necessary to determine the obligation to disclose information to shareholders of both organizations and individuals, groups of people related to owning shares of credit institutions above a specific level.

In addition, delegates said it is necessary to control cash flow and capital sources through non-cash payment mechanisms and apply personal data control.

"This place has very specific regulations related to cash flow because cash flow does not come naturally. It has to come from somewhere, from an individual. The Van Thinh Phat case shows us such a lesson," Mr. An stated.

Regarding the issue that has been mentioned many times, which is the story of having someone else stand in his/her name, Mr. An said that the draft law's provision that shareholders "are not allowed to contribute capital or buy shares of a credit institution under the name of another individual or legal entity in any form, except in cases of entrustment as prescribed by law" is still general.

The problem of using a name to stand in for a loan was clearly seen in the recent SCB case. However, the draft regulation will be very difficult to handle.

"What is contributing capital and buying shares of a credit institution under the name of another individual or legal entity? How will this regulation be implemented in practice? I propose very specific regulations to have a basis and prevention methods, especially against the "matrix" that we often euphemistically call the ecosystem created by the "bosses" and "madams" behind the banks," Mr. An suggested .

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