The Monetary Authority of Singapore (MAS) has agreed to create a new partnership with the State Bank of Viet Nam (SBV) to facilitate financial innovation and banking supervision.
MAS and SBC have entered into a memorandum of understanding (MoU) to work on joint innovation projects of two countries.
The pact will enable fintech companies in one jurisdiction better understand the regulatory regime and opportunities in the other, and boost the sharing of information on emerging FinTech trends and developments.
The partnership has also revised their existing MoU on banking supervision for expanding cooperation in crisis management.
According to MAS), the MoU underlines the two regulators’ shared commitment to protect the financial sectors in both countries.
MAS managing director Ravi Menon said: “Singapore and Vietnam share a strong common interest to improve the supervision of our banks, and to promote financial innovation.
“The new partnership in FinTech will encourage joint initiatives to improve the quality of financial services and enhance financial inclusion in both our countries and within ASEAN.”
SBV governor Le Minh Hung said: “With the signing of the revised MOU on cooperation and exchange of information in banking supervision and MOU on cooperation in the field of financial innovation, the framework for cooperation between our two agencies will be broadened and deepened, contributing importantly to the development of the strategic partnership between the two countries.”
MAS is involved in the management of exchange rate, official foreign reserves and liquidity in the banking sector in Singapore.
The authority supervises all financial institutions in Singapore, including banks, insurers, capital market intermediaries, financial advisors, and stock exchanges.
SBV, which is a ministerial agency of the Vietnam’s Government, is engaged in managing monetary and banking activities, as well as foreign exchange in the country. It manages public services under the jurisdiction of the state bank.
Image: State Bank of Vietnam building in Hanoi. Photo: courtesy of Adam Eales.