On December 21, 2021, the State Bank of Vietnam (SBV) and the Financial Supervisory Service (FSS) of the Republic of Korea jointly organized a virtual Workshop on the banking inspection and supervision. SBV Deputy Governor Doan Thai Son and FSS Deputy Governor Lee Jin Seok co-chaired and made opening speeches at the Workshop.
Also attending the Workshop, there were representatives from several SBV and FSS entities and a number of Korean commercial banks presenting in Vietnam.
In his opening speech, Deputy Governor Doan Thai Son shared stated that, since the establishment of the diplomatic ties in 1992, the cooperative relations between Vietnam and the Republic of Korea has been continuously developed since the establishment of the diplomatic ties in 1992over the past 30 years. Korean banks and financial institutions presenting in Vietnam are all operating actively and robustly, in compliance with the applicable laws and contributing to furthering the bilateral relations between the two countries in the economic and commercial sectors.
About the financial and banking management authorities of the two countries, over the past time, the SBV has established and developed close cooperative relations with the Bank of Korea (BOK), the Financial Services Commission (FSC) and the FSS. The Memorandum of Understanding (MoU) on bilateral cooperation and information exchange in the field of banking inspection and supervision, which was signed in 2019, has created a comprehensive framework for the SBV and the FSS to implement various practical cooperation activities.
Deputy Governor Doan Thai Son believed that the contents exchanged and shared at this Workshop would be useful reference information for both the FSS and the SBV, contributing to the inspection and supervision over the performance of Korean financial institutions in Vietnam, ensuring that these institutions operate in a safe and effective manner, in compliance with the applicable laws. He also expressed his sincere thanks to the FSS for having supported and collaborated with the SBV in the formulation and implementation of a capacity building program on anti-money laundering capabilities, which had been going on during the time from December 9-22, 2021. He expressed his hopes that, in the coming time, the SBV and the FSS would continue to further enhance the cooperative activities, in order to achieve more practical and effective outcomes.
Deputy Governor speaks at the Workshop
For the FSS’s side, FSS Deputy Governor Lee Jin Seok made high evaluation for the recent growth rates of Vietnamese banking sector, and expressed his hopes that Korean financial institutions, with their outstanding technologies, would contribute greatly to the development of Vietnam. In addition to the various cooperation programs between the two sides over the past time, Mr. Lee Jin Seok wished this Workshop would contribute to strengthening the cooperation between the SBV and the FSS, supporting to facilitate Korean banks' investments in Vietnam.
FSS Deputy Governor Lee Jin Seok speaks at the Workshop
At the Workshop, representatives from the FSS and the Banking Supervision Agency exchanged and discussed about the recent changes in the banking inspection and supervision in Korea, especailly after the application of Basel II standards; the granting of licenses for the establishment of new credit institutions in Vietnam; the current performance of Korean banks in Vietnam; the inspection and supervision results for Korean banks in Vietnam; the challenges and recommendations of Korean banks in Vietnam, etc.
Through this Workshop, the relevant departments of the Banking Supervision Agency could acquire important information and reference documents that may assist them in their researches, and may be applied to the banking inspection and supervision, as well as the licensing of banking operations and the implementation of Basel II standards in Vietnam, aiming towards the application of Basel III standards in the coming time. The SBV representatives all hoped to continue to receive more support from the FSS in the field of banking inspection and supervision, for the development of Vietnam’s banking industry in general, and the stability and safety of Korean banks operating in Vietnam in particular.
Le Hang