The State Bank has announced the inspection conclusion for the Prosperity and Development Joint Stock Commercial Bank (PGBank, stock code: PGB) after the inspection process according to Decision No. 105/QD-CucI.2. The inspection conclusion was issued on June 27. The inspection conclusion announcement was signed on July 4.
In conclusion, PGBank has basically issued internal policies and procedures on credit granting, off-balance sheet commitments; debt classification, provisioning and use of reserves to handle credit risks; checking and monitoring loans; loan guarantees; handling bad debts, debt collection and risk handling...
However, the inspection agency discovered that PGBank still has limitations and shortcomings. PGBank's operations still have some shortcomings in governance and risk management. The bank's Board of Directors and Board of General Directors have issued some internal regulations that are either lacking or not timely.
The effectiveness of control points in business processes is not high, the review and assessment of the causes of bad debt is not complete, and the responsibilities of related groups and individuals are not clear.
Internal audit activities also have limitations, such as not promptly detecting violations in credit granting, the number of personnel does not meet requirements and the audit capacity related to information technology is still weak. The methods and tools for identifying and measuring risks of the bank are assessed as "still simple, still in the process of research and development".
In credit granting activities, through sample inspection, the inspection agency discovered a number of cases of incomplete implementation of regulations on loan conditions, appraisal, loan approval, inspection and supervision of loans and collateral.
The conclusion also warns of potential risks when PGBank grants credit to customers with collateral such as unsecured loans, debt collection rights, receivables... and some customers have warnings of risks regarding financial status, project progress, and debt repayment revenue.
Inspectors pointed out a series of problems of PGBank in credit granting and bad debt handling (Photo: Tien Tuan).
Regarding bad debt handling, the conclusion stated that in 2023, PGBank has not achieved 100% of the plan to recover bad debt that has been handled. The bank's bad debt handling and recovery activities for some customers still have some shortcomings such as the loan term structure is not fully in accordance with legal regulations; the inspection and re-evaluation of the financial situation and collateral of customers have not been carried out in a timely manner to have a direction for debt handling and recovery.
During the inspection of the share ownership ratio, purchase and transfer of shares and stocks of shareholders at PGBank, the agency has compiled a number of contents related to the purchase and transfer of shares of 15 shareholders with an ownership ratio of over 0.1% of PGBank's charter capital and transferred the information to the competent authority for consideration according to regulations.
The Chief Inspector of the State Bank has decided to fine PGBank a total of VND370 million for three violations, including failing to issue a number of internal regulations as prescribed by law; establishing an incomplete trust contract and failing to establish a Debt Purchase and Sale Council as prescribed.
PGBank is required to seriously rectify and learn from experience in management and operation. The bank must direct groups and individuals to review and clearly identify the causes of existing shortcomings and limitations, and at the same time organize reviews and handle responsibilities. The Board of Directors and General Director of PGBank must develop a plan with a specific roadmap to overcome all the violations mentioned above.
The inspection agency also requested PGBank to assign a focal point to monitor and urge the remediation; direct debt collection and remedy the consequences of problem loans; and mobilize all resources to handle bad debts in accordance with the law.
PGBank has 16 shareholders, including 3 organizations and the rest are individuals owning 1% of the bank's charter capital.
Of which, 3 institutional shareholders and also 3 major shareholders of PGBank (owning 5% of the bank's capital) are Cuong Phat International Joint Stock Company with more than 56.87 million shares, equivalent to 11.37% of charter capital; Vu Anh Duc Trading Joint Stock Company owns more than 56.11 million shares, equivalent to 11.22% of capital; Gia Linh Import-Export and Trade Development Company Limited holds more than 55 million shares, equivalent to 11% of capital.
Source: https://dantri.com.vn/kinh-doanh/thanh-tra-tai-pgbank-ket-qua-ra-sao-20250709131415820.htm
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