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
Previous Article
HKMA to Increase Focus on Suptech and Regtech Cloud AdoptionRelated 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.
