SBV Publishes Multiple Regulatory Updates for Banks in December 2022
The State Bank of Vietnam (SBV) adjusted the credit target for 2022, issued a statement requesting credit institutions and foreign bank branches to provide credit to the economy and reduce lending interest rates, released guidance on environmental risk management in credit extension activities of credit institutions and foreign bank branches, and published circulars on prevention and combat of money laundering as well as debt purchase and sale activities of credit institutions and foreign bank branches.
Below are key highlights of these recent updates, as part of which, SBV:
- decided to adjust the credit target for 2022 by about 1.5% to 2% for the whole system of credit institutions indicating that credit institutions with better liquidity and lower interest rates will enjoy higher credit growth.
- issued a Document No 9064/NHNN-TD requesting credit institutions and foreign bank branches to provide credit to "production and business fields," priority sectors (agriculture, rural exports, small and medium-sized enterprises, supporting industries, high-tech enterprises), industrial park construction, housing real estate projects, and commercial housing projects. SBV expects credit institutions to promote the implementation of the interest rate support program, reduce lending interest rates, and control credit risk for investment activities in corporate bonds, potentially risky fields such as investment, securities trading, real estate sector.
- published a Circular that guides the implementation of environmental risk management in credit extension activities of credit institutions and foreign bank branches in Vietnam. Environmental risk assessment in credit extension activities is the determination of the level of environmental risks in credit granting activities of investment projects. The Circular will come in effect from June 01, 2023.
- seeks opinions from organizations and individuals on the draft Circular guiding the implementation of a number of articles of the Law on prevention and combat of money laundering. The Circular will come into force in March 2023 and replaces Circular No 35/2013/TT-NHNN dated December 31, 2013 of the State Bank of Vietnam guiding the implementation of a number of regulations on prevention and combat of money laundering.
- will amends and supplement a number of articles of Circular No 09/2015/TT-NHNN dated July 17, 2015 of the Governor of the State Bank of Vietnam, regulating purchase and sale of debt activities by credit institutions and foreign bank branches. The Circular will come in effect from February 09, 2023.
Related Links (in Vietnamese)
Keywords: Asia Pacific, Vietnam, Banking, Basel, ESG, Lending, Credit Risk, Liquidity Risk, Interest Rate Risk, SBV
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