SBV suggests delaying the establishment of digital banks in financial centre

SBV suggests delaying the establishment of digital banks in financial centre

The State Bank of Việt Nam (SBV) suggested that the establishment of digital banks should be postponed to January 1, 2027.

A view of downtown HCM City. —  VNA/VNS Photo

In the latest draft (Draft 12) of the Resolution on the establishment and operation of the financial centre in Việt Nam, the Ministry of Planning and Investment (MPI) has proposed forming digital banks from commercial banks that are members of financial centres.

The implementation process will begin on January 1, 2026.

The roadmap for adopting international banking standards (Basel III) within the financial centre is also planned to start concurrently.

However in its feedback on the proposal, the State Bank of Việt Nam (SBV) suggested that the establishment of digital banks should be postponed to January 1, 2027.

With the roadmap for adopting Basel III standards, the SBV didn’t agree with the proposal to implement it from January 1, 2026. The SBV emphasised that the application of international banking standards and practices in the financial centre should align with the roadmap being developed for commercial banks and foreign bank branches.

If immediate implementation is required, the SBV recommended clearly defining the Basel III application roadmap for foreign investors, requiring them to comply with these standards when establishing operations in the financial centre from January 1, 2026. This would be a condition for obtaining a license to operate within the centre.

However, the MPI maintains that financial centres have distinct regulatory frameworks compared to the country’s general policies. Therefore, the ministry has retained its original proposals to ensure a consistent policy framework for financial centre development.

Besides, the draft proposes that banks or financial institutions headquartered in the financial centre should not be subject to restrictions on foreign ownership limits or foreign investment conditions when providing services within the centre or across borders.

Nevertheless, the SBV pointed out that this provision directly relates to Việt Nam’s trade and investment commitments. Therefore, further review is necessary to mitigate the risk of violating Việt Nam’s obligations under trade agreements and investment protection treaties. 

Bizhub