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…
The State Bank of Vietnam has raised concerns over internal control issues at Shinhan Bank's Vietnam branch after completing a thorough inspection. The bank's central bank issued nine corrective recommendations, highlighting inadequate loan screening and monitoring processes. The inspection, conducted on September 21, focused on various aspects including lending operations, asset classification, loan-loss provisions, risk management, foreign exchange transactions, and overseas remittances.
The authorities found deficiencies in the loan screening process and subsequent monitoring, as some loan applications did not include sufficient documents proving borrowers' income and repayment capacity. Additionally, the branch was found to lack essential information about borrowers' financial conditions and the purpose of the loans in certain cases. The inspection report also revealed that the branch did not adhere to its own schedule for monitoring.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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