Vietnam: What is the current list of digital lending banks? Are individual customers not allowed to digitally apply for loans used for living purposes of over 100 million VND?
What are the digital lending rules in Vietnam?
On June 28, 2023, the Governor of the State Bank of Vietnam issued Circular 06/2023/TT-NHNN.
Accordingly, in Clause 11, Article 1, Circular 06/2023/TT-NHNN has added regulations on digital lending rules in Vietnam as follows:
Digital lending rules
1. Credit institutions shall adopt the digital lending method in a manner that is appropriate to their business conditions and loan features, and ensures security, safety and protection of data messages as well as confidentiality of information in accordance with regulations of laws on anti-money laundering and electronic transactions, SBV’s risk management guidelines and other relevant law provisions.
2. The information system used for carrying out digital lending activities must satisfy level-3 or higher-level information system security requirements laid down in the Government’s regulations on security of information systems by classification and SBV’s regulations on security of information systems in banking operations.
3. Credit institutions shall store and manage information and data in accordance with regulations of law; information and data must be stored safely, kept confidential, duly backed up and have their adequacy and integrity ensured to facilitate access or use, where necessary, or to serve the inspection, verification and resolution of trace requests, complaints or disputes, or to be provided at the request of competent authorities.
4. Each credit institution shall itself decide to adopt measures, forms and technologies for carry outing digital lending activities, accept all risks that may arise from digital lending, and must meet the following minimum requirements:
a) It has adopted solutions and technologies for ensuring the accuracy, confidentiality and safety during the collection, use and verification of information and data;
b) It has adopted measures for examining, checking, updating and verifying information and data; measures for preventing acts of forging, intervening and falsifying information and data;
c) It has developed measures for monitoring, identifying, measuring and controlling risks; risk treatment methods;
d) It has assigned responsibilities to each individual or department for performance of digital lending activities and risk management and control.
5. Credit institutions shall consider deciding to carry out digital lending activities as prescribed in Section 3 of this Circular. Relevant provisions of this Circular shall apply to other digital lending-related contents which are not mentioned in Section 3 of this Circular.
Accordingly, credit institutions must comply with the digital lending rules in Vietnam mentioned above.
In order to create a legal framework for digital lending activities by credit institutions to customers, the SBV agreed on general regulations on digital lending activities and made amendments to a number of other provisions to suit the form of digital lending.
On the other hand, digital lending is different from traditional lending in the form of lending. Therefore, digital lending must fully comply with credit laws.
Are individual customers in Vietnam not allowed to apply online for loans used for living purposes of over 100 million VND?
Clause 11 Article 1 of Circular 06/2023/TT-NHNN supplementing Article 32c to Circular 39/2016/TT-NHNN specifies the outstanding loan balance of credit institutions in Vietnam as follows:
Outstanding loan balance
The outstanding amount of loans for living purposes given by a credit institution to an individual customer who has been identified or has his/her identification information duly verified as prescribed in Article 32b of this Circular shall not exceed VND 100.000.000 (one hundred million).
Thus, the outstanding amount of loans for living purposes given by a credit institution to an individual customer shall not exceed VND 100.000.000 (one hundred million).
What is the current list of digital lending banks in Vietnam?
In the process of developing Circular 06/2023/TT-NHNN, the list of digital lending banks in Vietnam includes:
(1) Bank for Agriculture and Rural Development (Agribank):
(2) Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV):
(3) Bac A Commercial Joint Stock Bank (Bac A Bank)
(4) Viet Capital Commercial Joint Stock Bank (VietCapitalBank)
(5) Lien Viet Post Joint Stock Commercial Bank (LPBank)
(6) Tien Phong Commercial Joint Stock Bank (TPBank)
(7) Vietnam Maritime Commercial Joint Stock Bank (MSB)
(8) National Commercial Joint Stock Bank (NCB)
(9) Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank)
(10) Southeast Asia Commercial Joint Stock Bank (SeABank)
(11) Saigon – Hanoi Commercial Joint Stock Bank (SHB)
(12) Vietnam Technological and Commercial Joint Stock Bank (Techcombank)
(13) VIB International Bank (VIB)
(13) Vietnam Prosperity Joint Stock Commercial Bank (VPBank)
(14) Cooperative Bank
(15) Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank)
In general, the digital lending process of credit institutions is quite popular. Banks have been applying digital lending.
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