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.
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Keywords: Asia Pacific, Vietnam, Banking, COVID-19, Fintech, Regulatory Sandbox, Credit Risk, Operational Risk, Basel, ICAAP, Pillar 2, SBV
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