On January 14, 2020, the Board of Directors (BOD) - the highest decision-making agency - of the Bank for International Settlements (BIS) issued an official announcement to invite the State Bank of Vietnam (SBV) to become its member in 2020, together with the Central Banks of Kuwait and Morocco. This event marks a new step in the international integration process of the SBV in particular and the Vietnamese banking sector in general.
The admission of new members in the BIS is quite limited, on average new members could only be admitted every 5-10 years. According to the BIS press release, this is the first such expansion since 2011, and will take the number of the BIS members to 63. The selection for BIS membership is very strict and based on criteria such as the scope of the economic development, the level of the central bank’s governance. The invitation of the BIS to the SBV represents the recognition of Vietnam's socio-economic development achievements in the recent years, as well as the positive results of the SBV in managing the monetary policy and managing the banking system.
On the part of the SBV, becoming a member of the BIS will help the SBV and the banking system access the highest principles and standards of the global financial system, contributing to accelerating the international integration of the domestic banking and financial system, helping to consolidate and enhance the capacity and competitiveness of the Vietnamese banking and financial system as well as the economy. Moreover, the SBV in particular and Vietnam in general will be able to get directly involved in the process of developing the standards, principles, criteria and practices for financial, monetary and banking activities in the world; hence creating opportunities to address the specific issues of the economy and the domestic banking and financial system in order to consolidate the financial stability and sustainable growth.
Established in 1930, BIS is the oldest international organization and one of the most prestigious organizations in the global financial and monetary system. The members of the BIS include central banks / monetary management agencies of different countries, including developed countries and some developing countries with global influence such as the members of the G7, the G20 and the OECD, accounting for 95% of the world GDP. The BIS consists of 06 committees and 03 BIS-hosted associations. Of these, 06 subordinate committees are (i) the Irving Fisher Committee on Central Bank Statistics (IFC), (ii) the Committee on Payments and Market Infrastructures (CPMI), (iii) the Basel Committee on Banking Supervision (BCBS), (iv) the Committee on the Global Financial System, (v) the Markets Committee and (vi) the Central Bank Governance Forum. The BIS hosts three associations that also participate in the Basel Process: the Financial Stability Board, the International Association of Insurance Supervisors and the International Association of Deposit Insurers.
VA