Cross-banking ownership: ‘Everyone knows and recognizes it, but it’s very difficult to name and show face
Delegate Trinh Xuan An (Doan Dong Nai) said that the anti-cross-ownership regulation in the revised draft Law on Credit Institutions introduced this time is not strong.
National Assembly member Trinh Xuan An.
Discussing the revised Law on Credit Institutions, delegate Trinh Xuan An (Doan Dong Nai) said that: Before events such as the recent massive capital withdrawal at a bank, or in the United States, despite having a system. Even though the bank is strong, there is still a chance of bankruptcy, breakdown, etc., it is recommended that the law take measures to prevent the risk of system breakdown.
“Cross-ownership must be stopped, not restricted, cross-ownership is known and recognized by everyone, but it is very difficult to name it. If we assess cross-ownership, we can now see that there is a loophole in our credit system. This is really a difficult problem,” said Mr. An
According to Mr. An, the regulation on ending cross-ownership in the revised draft Law on Credit Institutions introduced this time is not strong.
“This is passive, ending cross-ownership must be public and transparent, organizations and individuals involved in this matter. Reset the banking-related supervisory model,” suggested Mr. An.
In order to have an incident like people withdrawing money massively at a bank recently, it is directly related to the inspection of the banking sector. But the revised Law on Credit Institutions this time only has 1 regulation, we think that there should be a whole chapter on this issue and need an independent agency model.
Delegate Nguyen Hai Trung – Lieutenant General, Director of City Police. Hanoi said that: The interests of the banking group have been causing concerns and risks to the safety of the system. Although the draft revised Law on Credit Institutions has provisions to limit this situation. However, there is currently a group of large shareholders with or without names in the Board of Directors, the Board of Management and controlling positions still occur, taking a long time for investigation.
Relating to banking-related fraud, in which subjects use fake information and documents, open bank accounts, hire to open accounts, resell accounts to law-breakers, The Director of Hanoi Public Security suggested that regulations should be legislated, in which there should be a requirement that credit institutions have a technological background in customer identification and ensure legitimacy.
“When a crime occurs, the police force must quickly track the cash flow and block the account. However, the current regulations do not meet the requirement of timely prevention. After defrauding the money, the object transferred the money very quickly, so the amount recovered was very small,” said the Director of Hanoi Public Security.
According to Mr. Trung from this practice, the regulation on providing customer account information for investigation needs to be shortened.