SBV Sets Out Key Tasks to be Implemented for Second Half of 2020
The Governor of SBV, Le Minh Hung, issued Document No. 5596/NHNN-VP to SBV entities, credit institutions, and the foreign bank branches on the implementation of the tasks for the last six months of 2020. These tasks include managing the monetary and credit policies closely to make timely forecast and assessments and supporting the businesses and people to overcome difficulties amid COVID-19 pandemic. In addition, SBV announced that Vietcombank has implemented initiatives to apply the internal capital adequacy assessment process (ICAAP) of Pillar 2 since July 2020.
The Banking Inspection and Supervision Agency of SBV held a preliminary conference on the work results of the Agency and key tasks for 2020. At the conference, the Deputy Governor of SBV delivered a speech requesting the Agency to focus on implementation of tasks issued in Document No. 5596/NHNN-VP. The SBV Governor has requested the banking industry to focus on implementing the key tasks in the last six months of 2020, including the following:
- To closely monitor and update official information about any new developments of the COVID-19 pandemic to implement all measures to contain the outbreak; to proactively formulate and apply the appropriate response scenarios, ensuring safe and smooth banking operations, especially the information technology and payment systems of SBV.
- To finalize the amendment and supplementation of Circular No. 01/2020/TT-NHNN in accordance with the practical situations to create more favorable conditions for businesses and credit institutions to resolve difficulties and recover the economic growth. Circular No. 01/2020/TT-NHNN directs credit institutions and foreign bank branches to restructure the repayment periods, waive and reduce the interest and fees, and maintain the debt classification to support the customers affected by COVID-19 pandemic.
- To continue to promote the communication on credit programs and policies and closely coordinate with the ministries, agencies, and local authorities to identify any violations in consumer lending activities of the credit institutions.
- To continue closely monitoring and directing the credit institutions to implement the restructuring plan in association with resolving bad debts in the 2016-2020 period.
- To coordinate with the relevant ministries and agencies to implement the procedures for building a roadmap to increase the capital for state-owned commercial banks in the 2021-2026 period, including an increase of capital from the state budget to be submitted to the competent authorities for approval.
- To finalize and submit to the government, for promulgation, a Decree on Fintech Regulatory Sandbox.
Related Links (in English and Vietnamese)
Keywords: Asia Pacific, Vietnam, Banking, COVID-19, Fintech, Regulatory Sandbox, Credit Risk, Operational Risk, Basel, ICAAP, Pillar 2, SBV
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
FSC Korea Highlights Increasing ESG Focus in Korean Financial SectorRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
