The State Bank of Vietnam (SBV) approved the plan of the banking sector to implement National Strategy for Digital Economy and Digital Society Development to 2025 with orientation to 2030 and published a circular on special loans for specially controlled credit institutions. SBV is also requesting opinion on amending and supplementing a number of articles of the Law on credit institutions as well as on the draft circular on the operation of credit institutions that are cooperatives.
The key highlights of the aforementioned updates follow:
- SBV issued Decision No 1887/QD-NHNN which approves the plan to organize the synchronous and effective implementation of the tasks of the banking sector assigned in the National Strategy for Digital Economy and Digital Society Development to 2025. The key tasks include developing digital payments towards universal financial inclusion, promoting cashless payments, improving institutions, develop and use digital platforms, develop digital data, ensuring information security and network security, developing digital skills, digital citizens and digital culture, developing digital enterprises, and other related tasks. The Decision takes effect from the date of signing.
- SBV published Circular No 13/2022/TT-NHNN which amends and supplements a number of articles of Circular No 08/2021/TT-NHNN of July 06, 2021 stipulating special loans for specially controlled credit institutions. The Circular No 13/2022/TT-NHNN takes effect from October 28, 2022. For special loans arising from October 27, 2021 and outstanding until the effective date of this Circular, on the basis of applying the conversion rate of collateral specified in this Circular, credit institutions may use collateral at the State Bank of Vietnam to continue special loans, ensuring that the total conversion value of eligible secured assets is not lower than the total amount of special loans.
- SBV is requesting opinion from organizations and individuals on the dossiers of application for the development of a Law amending and supplementing a number of articles of the Law on credit institutions. The Law on credit institutions, along with detailed guiding documents and regulations has created a legal basis for the inspection and supervision of credit institutions. The Law provides for the establishment, organization, operation, special control, governance, reorganization, dissolution of credit institutions and the establishment, organization and operation of foreign bank branches, representative offices of foreign credit institutions, organizations other than foreign institutions having banking activities.
- SBV is requesting opinion from organizations and individuals on the draft circular on the classification of assets, the level of deduction, the method of setting up risk provisions and the use of provisions to handle risks in the operation of credit institutions that are cooperatives. The circular applies to credit institutions being cooperatives, including cooperative banks and people’s credit fund.
Related Links (in Vietnamese)
- Press Release on Decision No 1887/QD-NHNN
- Circular No 13/2022/TT-NHNN
- Dossier of Proposal For Development of Law on Credit Institutions
- Draft Circular on Operation of Credit Institutions Being Cooperatives
Keywords: Asia Pacific, Vietnam, Banking, Lending, Credit Risk, Regtech, Cooperative Banks, National Strategy, Digital Ecosystem, Basel, SBV
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