The State Bank of Vietnam (SBV) announced its decision to continue to focus on implementing a number of credit risk management measures in 2022, in response to the economic difficulties resulting from the COVID-19 pandemic; these include directing credit institutions to continue creating favorable conditions for affected debtors and to continue to implement government-introduced credit programs and policies. In another development, SBV notes that, at the Bank for International Settlements (BIS) general meeting of Governors in January 2022, it was highlighted that the Vietnamese authority's Cyber Security Development Strategy for 2021–2025 identifies the priority goal of building a professional and modern cyber-security and safety foundation; the theme of the BIS meeting was "Central banks' priorities in responding to and managing cyberspace risks.” Moreover, SBV issued Directive No. 02/CT-NHNN, which directs relevant entities to accelerate the digital transformation and ensure the information technology security for banking operations.
The following are additional highlights of these recent developments:
- The SBV Cyber Security Development Strategy for 2021–2025 includes proactively identifying and promptly resolving any cyberspace safety and security incidents, ensuring the information safety and security, supporting effectively the specialized operations of SBV, and assisting the supervision and responses to any information security incidents in the banking sector. To achieve this goal, SBV will actively promote cooperation, create networks, share more information on cyber-security in a quick and timely manner, share and support the development of governance activities enhancing the cyber resilience and recovery of the information systems, and participate in the cooperation mechanisms and discussions on cyber security and safety.
- With respect to the Directive on digital transformation, SBV requests all SBV entities, credit institutions, and foreign bank branches and the intermediary payment service providers to focus on implementing the specific tasks and measures. These include proactively implementing the tasks and measures as stipulated in the Digital Transformation Plan of the Banking Sector, improving awareness about the role and advantages of the digital transformation, and enhancing the cooperative activities, experience sharing, research and application of digital technology to banking operations. SBV also encouraged credit institutions and intermediary payment service providers to develop and implement their own frameworks of risk management as well as to regularly review and assess risks to have contingent plans and timely response solutions. Credit institutions are encouraged to proactively research and deploy digital technology and solutions in design, products, and services in line with the SBV vision about digital transformation in the banking sector. SBV requests credit institutions to working closely with the relevant authorities to combat crime and fraud in the cyberspace as well as to promptly report to SBV about any security-related issues.
Related Links (in English and Vietnamese)
- Press Release on Credit Management Measures
- Press Release on Cyber Security Strategy
- Press Release on Digital Transformation Directive
Keywords: Asia Pacific, Vietnam, Banking, Covid 19, Cyber Risk, Credit Risk, Digital Transformation Plan, Regtech, SBV
Previous ArticleOCC Consults on Stress Test Report and FDIC Sets Priorities for 2022
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.