Accordingly, Article 4 of this Decree prohibits banks from providing client’s authentication information upon access to banking services, including client’s secret key, biometric data, access password and client’s authentication information to any entity, organization or individual unless such provision is authorized in writing by that client or in any other form as agreed upon.
Client information must be protected confidentially. The provision of client information for other state agencies, organizations or individuals is only allowed with regard to cases regulated in details by regulations of laws or having the written authorizations of such client.
Every bank must promulgate its internal regulation on protection of confidentiality, storage and provision of client information in accordance with the regulations of this Decree.
This Decree takes effect from November 1st, 2018 and replaces Decree No. 70/2000/ND-CP dated November 21st, 2000.
Accordingly, personnel expected to be appointed to become a member of the Board of Directors, member of Board of Members, member of Board of Controllers or Director General (Director) at banks must obtain the written approval of the State Bank of Vietnam’s Governor.
Each written approval of the State Bank of Vietnam’s Governor shall remain valid within 06 months from the date on which it is signed. After the effective period, if the election or appointment of personnel of banks fails to be completed, the written approval will become automatically null and void.
This Circular takes effect from November 1st, 2018
These regulations shall be abolished:
a) Section 3 Chapter II; Article 21; Clause 1, Clause 2 Article 43; Article 44; the regulations on approval for personnel specified in Articles 16, 46, 47, 48, 49, 50 and 51 of Circular No. 06/2010/TT-NHNN dated February 26th, 2010;
b) The regulations on approval for personnel specified in Section II Part III; Section III Part III of Circular No. 03/2007/TT-NHNN dated June 5th, 2007;
c) Decision No. 516/2003/QD-NHNN dated May 26th, 2003 and Decision No. 14/2006/QD-NHNN dated April 4th, 2006.
+ The Foreign Exchange Settlement System (controlled by the Joint Stock Commercial Bank for Foreign Trade of Vietnam);
+ The securities payment system;
+ The clearing and switching system for financial transactions
These are the payment systems playing key roles in serving payment needs of the subjects in the economy, is likely to cause systematic risks.
If through the inspection of reports, information sources and results of the inspection conducted at head office of the a payment system operator detecting potential risks posing danger to safety and stability of important payment systems, the State Bank of Vietnam shall issue warnings and recommendations.
This Circular takes effect from January 1st, 2019.
At the same time, banks have to establish or assign a department in charge of information security to perform the task of information security assurance and response to cybersecurity incidents and manage the center for cyber information security operation (Article 12)
It is required to apply anti-phishing authentication measures and methods for preventing and fighting against illegal alteration to websites which provide online transaction services and detecting and providing warning of suspected transactions, Denial of Service attack (DoS) and Distributed Denial of Service attack (DDoS) (Article 24).
Periodically, to carry out assessment of security system once every six months (for Level 3 information systems), once every year (for Level 2 information systems), once every two years (for Level 1 information systems (Article 41).
This Circular comes into effect from January 1st, 2019 unless otherwise prescribed in point b Clause 2 Article 12 which comes into force from January 1st, 2020.
1. Circular No. 40/2011/TT-NHNN (Clause 2 Article 9 and Clause 3 Article 10) regulating conditions for establishment of a joint-stock commercial bank, accordingly, the condition “having at least 2 founding shareholders as organizations” is abolished.
2. Circular No. 21/2013/TT-NHNN (point i Clause 1 Article 6 is abolished) regulating conditions for establishment of branches in country of commercial bank, accordingly, the condition “have full and valid dossier” is abolished.
3. Circular No. 21/2014/TT-NHNN (point a Clause 2 Article 10 is abolished) regulating conditions for allowing banks, branches of foreign banks to extend other foreign exchange transactions. Accordingly, the condition “the permit with limited duration is issued by the State Bank” is abolished.
4. Circular No. 30/2015/TT-NHNN (Article 11) regulating requirements for licensing joint stock non-bank credit institutions. Accordingly, the condition “having at least two founding shareholders as organizations” is abolished.
5. Circular No. 31/2012/TT-NHNN (Clause 6 Article 8,Clause 1 Article 25) regulating conditions for licensing to establish cooperative banks.
6. Circular No. 04/2015/TT-NHNN (point d Clause 1 Article 31) regulating conditions for licensing to establish the people’s credit funds.
This Circular takes effect from October 1st, 2018.
Accordingly, the phrase “maintain the 30-day solvency ratio applicable to Vietnamese dong (including Vietnamese dong and other foreign currencies freely converted into Vietnamese dong according to the exchange rate regulated in point a Clause 25 Article 3 of this Circular)" shall be corrected into “maintain the 30-day solvency ratio applicable to Vietnamese dong".
In particular, it is required to only focus mainly on production, business and priority areas, concurrently strictly control credit provided for areas with potential risks such as real estate, securities, BOT, BT transport projects, credit for consumer spending, especially in relation to real estate, etc.
In addition, the SBV also requests to strictly control the provision of loans in foreign currencies, gradually reduce and develop a roadmap to stop the provision of loans in foreign currencies.
This Directive takes effect from the date of its signing.
In addition, this Circular also amends the formula for calculation of liquid reserve ratio and the maximum ratio of short-term capital sources used as the medium and long term loans in Vietnamese dong.
Accordingly, banks and branches of foreign banks have to comply with maximum ratio when they use short-term capital sources for provision of medium and long term loans as follows: not exceeding 45% in 2018 and not exceeding 40% in 2019. For non-bank credit institutions, such ratio must not exceeding 90%.
This Circular takes effect from July 31st, 2018.
To abolish Clauses 15, 16, 17 and 22 Article 1 of Circular No. 19/2017/TT-NHNN dated December 28th, 2017.
According to Clause 2 Article 5 of this Circular, commercial banks, foreign banks’ branches must have internal regulations in compliance with Article 93 of the Law on Credit Institutions and the regulations regulated in this Circular.
Particularly, for a foreign bank’s branch, its Director General (Director) may promulgates the branch’s internal regulations in accordance with the parent bank’s regulations or use the internal regulations promulgated by the parent bank.
Commercial banks, foreign banks’ branches have to prepare internal control reports and submit them to the State Bank, including:
- Annual self-inspection and self-assessment results according to Appendix 1 issued together with this Circular;
- Annual risk management report according to Appendix 2 issued together with this Circular;
- Annual internal capital adequacy assessment report according to Appendix 4 issued together with this Circular;
- Annual internal audit report according to Appendix 5 issued together with this Circular, alongside unscheduled internal audit report.
Time limit for submission of each type of report shall comply with the regulations in Clause 3 Article 7. In each internal control report, it is required to update the problems, limitations and risks that recently arose in the internal control system of each whole commercial bank (including the departments of the headquarters, branches and other affiliates).
In addition, every year, commercial banks, foreign bank's branches also have to carry out internal capital adequacy assessment for between 3 and 5 years (Article 59). However, this provision shall be applied from 2021.
This Circular shall take effect from January 1st, 2019. Commercial bank and foreign bank's branch shall implement the regulations on internal capital adequacy assessment mentioned in Chapter V of this Circular from January 1st, 2021.
To amend, supplement to a number of articles of Circular No. 44/2011/TT-NHNN dated December 29th, 2011.