Shinhan Bank's Vietnam unit under scrutiny over internal control issues
Shinhan Bank's Vietnam operations are facing scrutiny over internal controls after the Southeast Asian country's central bank issued nine corrective recommendations, including shortcomings in loan screening, according to industry officials on Wednesday. The State Bank of Vietnam's regional inspection authority issued its findings on Sept. 21 after conducting a comprehensive inspection of Shinhan…
Shinhan Bank's Vietnam branch is currently under investigation by the State Bank of Vietnam for internal control issues. The bank's regional inspection authority issued nine recommendations to address problems related to its lending operations. These recommendations include inadequate loan screening and monitoring processes, as well as insufficient documentation proving borrowers' income and repayment capacity.
During the comprehensive inspection conducted on September 21, the authorities found that some loan applications were missing crucial information about borrowers' financial status and loan purposes. Additionally, the branch failed to follow its own schedule for monitoring loan performance. The findings highlight the need for improvements in loan screening, approval, and post-loan monitoring processes at the branch level.
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