SBV published updated information on the legal framework for implementing Basel II standard for banks in Vietnam and a roadmap for implementation of this standard. The Governor of SBV signed the Official Letter No. 1601/NHNN-TTGSNH approving the roadmap for Basel II standard. By 2020, at least 12-15 commercial banks will have successfully applied Basel II.
The Governor of SBV, on December 30, 2016, had signed the Circular No. 41/2016/TT-NHNN on capital adequacy ratios for banks and foreign bank branches (Circular 41) according to Basel II. This was considered the first step with respect to the implementation of Basel II in accordance with the schedule approved by the Governor of SBV to implement Pillar 1 and Pillar 3 of Basel II. To further complete the legal framework for the implementation of Basel II Standard in Vietnam, on May 18, 2018, SBV had issued Circular No. 13/2018/TT-NHNN, which covers implementation of the second pillar of Basel II and provides provisions related to internal control for commercial banks and foreign bank branches.
Related Link: Press Release
Keywords: Asia Pacific, Vietnam, Banking, Basel II, Legal Framework, Roadmap, Pillar 1, Pillar 2, Pillar 3, Capital Adequacy, SBV
Previous ArticlePBC Releases Fintech Development Plan for 2019-2021
PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.
EBA published guidelines on loan origination and monitoring, which bring together prudential standards and consumer protection obligations, along with the anti-money laundering and the Environmental, Social, and Governance (ESG) considerations.
EBA published a consultation paper on the draft amended regulatory technical standards on own funds and eligible liabilities.
EBA published a report on convergence of supervisory practices in 2019.
IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.
MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.
BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.
FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.