SBV Approves Plan for Digital Transformation of Banking Sector by 2025
SBV issued Decision No. 810/QD-NHNN approving the plan for digital transformation of the banking sector by 2025, with orientation toward 2030, along with the questions and answers (Q&A) on the plan. The overall goal of the plan is to comprehensively renovate the management activities of SBV in the direction of modernity, thus fully meeting the government criteria on digital transformation and realizing the goal of financial inclusion and sustainable development. This plan addresses the increase in knowledge about digital transformation in the banking industry, the details on building and perfecting the legal framework to facilitate the digital transformation process in the banking industry, and the development of digital infrastructure. The Decision takes effect from the date of signing.
The plan suggests establishing the Banking Sector Digital Transformation Steering Committee to perform the functions and tasks of researching and proposing guidelines, strategies, mechanisms, and policies to create a legal environment to promote the digital transformation process and direct the implementation of the plan. The Banking Sector Digital Transformation Committee will be headed by the Governor of SBV. Functions, tasks, working regulations, and composition of the Steering Committee shall be decided by the SBV Governor. In addition, SBV notified that Paypal (a company operating in the field of e-commerce) conducted a survey on the current state of cybersecurity and safety in Association of Southeast Asian Nations (ASEAN) fintech sector. On the basis of the survey, Paypal made recommendations for the sustainable development of the ASEAN fintech ecosystem and strengthening the ability to prevent and combat cyber threats. These recommendations are related to developing legal regulations on cybersecurity for the fintech sector, adopting strong cybersecurity policies at the regional level in line with global security standards, promoting regulatory sandbox in the region for knowledge sharing and risk management, establishing an overall training program to raise awareness of people and businesses about cybersecurity, and encouraging public-private partnerships in research, recruitment, and information- sharing.
In a separately issued statement, SBV notified that credit institutions and foreign bank branches are required to instruct their branches and transaction offices to implement preventive measures in response to COVID-19 pandemic. Credit institutions are required to continue to implement measures to support and remove difficulties for COVID-affected customers, such as rescheduling debt payment, exempting and reducing interest/fees, providing new loans, in line with the circulars published in March 2020 and April 2021. Each credit institution, based on its financial capacity and capabilities, shall consider whether to reduce the lending interest rates, reschedule debt payment, and implement other support measures as well as publicize their interest rates and other support measures and policies.
Related Links (in Vietnamese)
- Press Release on Digital Transformation Plan
- Q&A on Digital Transformation Plan
- Press Release on Recommendations
- Press Release on COVID-19 Support Measures (in English)
Keywords: Asia Pacific, Vietnam, Banking, Fintech, Digital Transformation Plan, Technology Risk, COVID-19, Credit Risk, Cyber Risk, Loan Moratorium, Regtech, SBV
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