SBV Approves Digital Transformation Plan, Issues Other Updates
The State Bank of Vietnam (SBV) published the Digital Transformation Plan for 2022, announced a project on the restructuring of credit institutions dealing with bad debts, and published a circular guiding commercial banks to provide interest rate support for loans. SBV is also requesting opinion on the draft Law on anti-money laundering as well as on the draft circular regulating lending activities of credit institutions.
Below are the key highlights of the recent updates:
- SBV issued Decision No. 1097/QD-NHNN approving the Digital Transformation Plan of the banking sector for 2022. The objectives of the Plan are to develop a digital government, a digital economy, and a digital society. The plan covers tasks related to formulating a new Decree on a regulatory sandbox for fintech in the banking sector, promoting the use of digital payments, promoting the use of digital platforms, reviewing and publicizing the list of open data and shared data in the form of default data-sharing, and deploying solutions for cyber-security.
- SBV announced that the Deputy Prime Minister, Le Minh Khai, has approved the project "Restructuring the system of credit institutions in association with bad debt settlement in the 2021-2025 period." This project aims to create a clear and substantive change in the restructuring of the system of credit institutions associated with dealing with bad debts, strive to reduce the number of weak credit institutions by 2025, prevent new weak banks from arising, strive to have at least 2-3 commercial banks in the top 100 largest banks in Asia.
- SBV published Circular No 06/2022/TT-NHNN which amends and supplements a number of articles of Circular No. 50/2018/TT-NHNN on regulations on documents profile, order, and procedures for approving a number of changes of commercial banks and foreign bank branches. The Circular No 06/2022/TT-NHNN takes effect from August 15, 2022.
- SBV published Circular No 03/2022/TT-NHNN guiding commercial banks to implement interest rate support under the Government's Decree No. 31/2022/ND-CP on interest rate support from State budget for loans of enterprises, cooperatives, and business households. The circular highlights that commercial banks shall provide loans with interest rate support on lending activities of credit institutions and foreign bank branches to customers. The circular includes provisions related to scope of application, method of interest rate support, determining and announcing the interest rate support limit for each commercial bank, management of interest rate support limits of commercial banks, responsibilities of commercial banks, and responsibilities of units under SBV. This circular came into effect from May 20, 2022.
- SBV is requesting opinion from organizations and individuals on the draft amendments to Law on prevention of money laundering. Additionally, SBV is requesting opinion on draft circular which amends and supplements a number of articles of Circular No. 39/2016/TT-NHNN regulating lending activities of credit institutions and foreign bank branches.
Related Links (in English and Vietnamese)
- Press Release on Digital Transformation Plan (in English)
- Press Release on Restructuring of Credit Institutions
- Circular No 06/2022/TT-NHNN
- Circular No 03/2022/TT-NHNN
- Notification on Draft Law on Anti-Money Laundering
- Notification on Draft Circular on Lending Activities of Credit Institutions
Keywords: Asia Pacific, Vietnam, Banking, Digital Transformation Plan, Bad Debt, NPLS, Regtech, Fintech, Credit Risk, Lending, AML CFT, ML TF Risk, SBV
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