SBV Approves Plan for Digital Transformation of Banking Sector by 2025
SBV issued Decision No. 810/QD-NHNN approving the plan for digital transformation of the banking sector by 2025, with orientation toward 2030, along with the questions and answers (Q&A) on the plan. The overall goal of the plan is to comprehensively renovate the management activities of SBV in the direction of modernity, thus fully meeting the government criteria on digital transformation and realizing the goal of financial inclusion and sustainable development. This plan addresses the increase in knowledge about digital transformation in the banking industry, the details on building and perfecting the legal framework to facilitate the digital transformation process in the banking industry, and the development of digital infrastructure. The Decision takes effect from the date of signing.
The plan suggests establishing the Banking Sector Digital Transformation Steering Committee to perform the functions and tasks of researching and proposing guidelines, strategies, mechanisms, and policies to create a legal environment to promote the digital transformation process and direct the implementation of the plan. The Banking Sector Digital Transformation Committee will be headed by the Governor of SBV. Functions, tasks, working regulations, and composition of the Steering Committee shall be decided by the SBV Governor. In addition, SBV notified that Paypal (a company operating in the field of e-commerce) conducted a survey on the current state of cybersecurity and safety in Association of Southeast Asian Nations (ASEAN) fintech sector. On the basis of the survey, Paypal made recommendations for the sustainable development of the ASEAN fintech ecosystem and strengthening the ability to prevent and combat cyber threats. These recommendations are related to developing legal regulations on cybersecurity for the fintech sector, adopting strong cybersecurity policies at the regional level in line with global security standards, promoting regulatory sandbox in the region for knowledge sharing and risk management, establishing an overall training program to raise awareness of people and businesses about cybersecurity, and encouraging public-private partnerships in research, recruitment, and information- sharing.
In a separately issued statement, SBV notified that credit institutions and foreign bank branches are required to instruct their branches and transaction offices to implement preventive measures in response to COVID-19 pandemic. Credit institutions are required to continue to implement measures to support and remove difficulties for COVID-affected customers, such as rescheduling debt payment, exempting and reducing interest/fees, providing new loans, in line with the circulars published in March 2020 and April 2021. Each credit institution, based on its financial capacity and capabilities, shall consider whether to reduce the lending interest rates, reschedule debt payment, and implement other support measures as well as publicize their interest rates and other support measures and policies.
Related Links (in Vietnamese)
- Press Release on Digital Transformation Plan
- Q&A on Digital Transformation Plan
- Press Release on Recommendations
- Press Release on COVID-19 Support Measures (in English)
Keywords: Asia Pacific, Vietnam, Banking, Fintech, Digital Transformation Plan, Technology Risk, COVID-19, Credit Risk, Cyber Risk, Loan Moratorium, Regtech, SBV
Featured Experts
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
HKMA to Increase Focus on Suptech and Regtech Cloud AdoptionRelated Articles
BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
EBA Seeks Views on Proportionality Assessment Methodology
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
US Agencies Propose Changes to Call Reports and Instructions
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
EBA Examines Asset Encumbrance in Banking Sector
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
EBA Publishes Methodological Guide to Mystery Shopping
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
APRA Issues Update on Capital Reform Policy Settings for Banks
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
CPMI-IOSCO Assess Continuity Planning of Market Infrastructures
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
BoE Announces Changes to Validation Rules for Form BTL
The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.
BCBS Proposes Changes to Process for Reviewing G-SIB Methodology
The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.
