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
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.
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Next Article
EIOPA Updates Risk Dashboard in August 2020Related Articles
Regulators Fine Goldman Sachs for Risk Management Failures
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
Canada Hosts International Conference of Banking Supervisors
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA Proposes More Measures to Help Insurance Customers Amid Crisis
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA Issues Opinion to Address Risk Stemming from Legacy Instruments
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB Publishes Non-Bank Financial Intermediation Risk Monitor for 2020
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury Publishes Policy Statement Amending Benchmarks Regulation
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA Initiates Action Against a Bank for Liquidity Compliance Breach
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
PRA Consults on Implementation of Certain Provisions of CRD5 and CRR2
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies Finalize Rule to Reduce Impact of Large Bank Failures
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies Finalize Rule on Net Stable Funding Ratio Requirements
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.
