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
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Hasan Cerhozi
Hasan leads Moody’s Analytics ESG methodology development. He is expert on carbon transition, nature related risks and is a guest lecturer at ESSEC Business school on sustainable finance.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
BOT Consults on Phase I of Sustainable Finance Taxonomy InitiativeRelated 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.
