Public Bank Vietnam Found to Have Multiple Violations in NHNN Inspection

On 7 April 2026, the State Bank of Vietnam (NHNN) Inspector General issued Inspection Conclusion No. 10/KL-TTNH3 following an inspection of Public Bank Vietnam Limited Liability Bank (PBVN). The conclusion identifies multiple shortcomings and deficiencies across PBVN’s credit activities, foreign exchange and remittance operations, risk management, governance, and internal controls.

Key shortcomings identified

The inspection conclusion notes that PBVN has internal regulations covering credit activities, foreign exchange transactions, remittance abroad, and anti–money laundering controls. However, the NHNN Inspector General found violations and gaps in implementation of relevant rules.

• Credit activities and risk management: Violations were identified in complying with rules governing lending, guarantees, and letters of credit, including issues related to debt classification, provisioning, and the use of allowances to manage risk.
• Handling of bad debts and off-balance sheet debt collection: The inspection pointed to deficiencies in how bad debts and off-balance sheet debt collection were handled after provisioning.
• Loan file sampling: Sampling of PBVN client loan files showed remaining deficiencies in loan eligibility, appraisal and loan decisioning, monitoring of borrowings, collateral management, debt restructuring, and other lending-related matters.
• Foreign exchange and remittance documentation: The conclusion also indicates violations related to operational documentation for some foreign exchange transactions and remittance abroad.

Restructuring plan (PACCL) for 2021–2025 remains incomplete

The inspection conclusion states that the implementation of the restructuring plan (PACCL) tied to bad debt resolution for 2021–2025 at PBVN is still incomplete. Some indicators were not fully achieved, and some content related to duties and measures under Decision 689 was not fully specified.

It further notes that governance, risk management, and internal audit in implementing PACCL did not receive adequate attention relative to unmet targets.

Governance, risk management and internal controls

In the area of governance, risk management, and internal controls, the NHNN Inspector General concluded that PBVN’s governance and internal control systems have deficiencies. The report also states that there is no internal IT auditor addressing IT-related risks.

Causes cited by the Inspector General

The inspection conclusion attributes the issues to both external and internal factors. It cites objective external factors, including adverse market conditions and customer-related risks, as well as subjective internal factors such as governance, oversight, control and audit shortfalls, incomplete procedures, and non-compliance across units.

Administrative penalties and recommendations

The NHNN Inspector General’s conclusion also notes that PBVN’s leadership bears responsibility for the identified issues and violations. A decision to impose administrative penalties in the monetary-banking domain was issued against PBVN for internal-regulation violations, lending violations, and foreign-currency lending violations.

The report includes recommendations for PBVN to address the identified deficiencies, violations, and risk warnings. These include directing the Board of Directors and relevant bodies to conduct accountability measures, develop a concrete remediation plan, monitor progress, and apply appropriate regulatory responses to ensure safe and stable operations.

Background on PBVN

Public Bank Vietnam (PBVN) is a 100% foreign-owned bank under Public Bank Berhad, Malaysia. PBVN was established in 2016 based on the transfer of assets, liabilities, rights, obligations, and lawful interests of the Vietnam-based joint venture VID Public. The bank’s headquarters are located at Hanoi Tungshing Square Building, No. 2 Ngo Quyen, Hoan Kiem District, Hanoi.