What are the activities of commercial banks in Vietnam? What are the regulations on opening of accounts at commercial banks in Vietnam under the Law on Credit Institutions in 2024?
- What are the activities of commercial banks in Vietnam?
- What are the regulations on opening of accounts at commercial banks in Vietnam under the Law on Credit Institutions in 2024?
- What are the other business activities of commercial banks in Vietnam?
- What are the regulations on entrusted and agency activities of commercial banks in Vietnam under the Law on Credit Institutions 2024?
What are the activities of commercial banks in Vietnam?
Pursuant to Clause 23, Article 4 of the Law on Credit Institutions 2024, commercial banks are a type of bank that carries out all banking activities and other business activities in accordance with the provisions of the Law on Credit Institutions 2024 with the aim of making a profit.
Pursuant to Clause 1, Clause 2, Article 6 of the Law on Credit Institutions 2024, the legal form of a commercial bank is as follows:
- Domestic commercial banks are established and organized as joint-stock companies, except for cases specified in Clause 2 of Article 6 of the Law on Credit Institutions 2024 and cases where mandatory transfer plans are approved.
- State commercial banks are established and organized as single-member limited liability companies with 100% charter capital held by the State.
Pursuant to Article 107 of the Law on Credit Institutions 2024, commercial banks will have the following 06 specific banking activities:
(1) Accepting demand deposits, time deposits, savings deposits, and other types of deposits.
(2) Issuing certificates of deposit.
(3) Providing credit under the following forms:
- Lending;
- Discounting, rediscounting;
- Bank guarantee;
- Issuing credit cards;
- Payment guarantee within the country; international payment guarantee for banks authorized to make international payments;
- Letter of credit;
- Other forms of credit issuance as prescribed by the Governor of the State Bank.
(4) Opening payment accounts for customers.
(5) Providing payment instruments.
(6) Providing payment services through accounts, including:
- Providing domestic payment services, including checks, payment orders, payment mandates, collection orders, collection mandates, money transfers, bank cards, collection services, and payment services;
- Providing international payment services after being approved in writing by the State Bank; other payment services as prescribed by the Governor of the State Bank.
These are the 06 banking activities of commercial banks as stipulated by the Law on Credit Institutions 2024.
What are the activities of commercial banks in Vietnam? What are the regulations on opening of accounts at commercial banks in Vietnam under the Law on Credit Institutions in 2024? (Image from the Internet)
What are the regulations on opening of accounts at commercial banks in Vietnam under the Law on Credit Institutions in 2024?
Pursuant to Article 109 of the Law on Credit Institutions 2024, the opening of accounts at commercial banks is regulated as follows:
- Commercial banks must open payment accounts at the State Bank and maintain the required reserve amount in this account.
- Commercial banks are allowed to open payment accounts at credit institutions that provide payment services through accounts.
- Commercial banks are permitted to open payment accounts overseas in accordance with the regulations on foreign exchange.
What are the other business activities of commercial banks in Vietnam?
In addition to the banking activities specified in Article 107 of the Law on Credit Institutions 2024, commercial banks are also engaged in other business activities as regulated by relevant laws, specifically outlined in Article 114 of the Law on Credit Institutions 2024, as follows:
(1) Commercial banks are allowed to carry out the following business activities as regulated by the Governor of the State Bank:
- Cash management services; treasury services for credit institutions, branches of foreign banks; asset custody services, safe rental services;
- Provision of money transfer services, collection services, payment services, and other non-account-based payment services;
- Buying and selling State Bank bills, corporate bonds; buying and selling other valuable papers, except for those specified in point a, Clause 2 of Article 114 of the Law on Credit Institutions 2024;
- Foreign exchange brokerage services;
- Gold trading;
- Other services related to payment guarantees, credit letters;
- Advisory services on banking operations and other business activities specified in the license.
(2) Commercial banks are allowed to carry out the following business activities as regulated by relevant laws:
- Buying and selling government securities, guaranteed government bonds, local government bonds;
- Issuing bonds;
- Securities depository services;
- Banking supervision activities;
- Acting as an asset management agent for the borrower, who is an international financial institution, foreign credit institution, or branch of a foreign bank.
(3) Commercial banks are allowed to engage in other business activities related to banking operations, apart from the activities specified in Clause 1 and Clause 2 of Article 114 of the Law on Credit Institutions 2024, as regulated by the Governor of the State Bank and other relevant laws..
What are the regulations on entrusted and agency activities of commercial banks in Vietnam under the Law on Credit Institutions 2024?
Pursuant to Article 113 of the Law on Credit Institutions 2024, the entrusted and agency activities of commercial banks are regulated as follows:
- Commercial banks have the right to entrust and receive entrusted activities, act as agents in banking operations, and act as payment agents as regulated by the Governor of the State Bank.
- Commercial banks are allowed to engage in agency activities in insurance as regulated by the laws on insurance business, within the scope of insurance agency activities specified by the Governor of the State Bank.
The Law on Credit Institutions 2024 comes into force from July 1, 2024, except for the provisions in Clause 2 of Article 209 of the Law on Credit Institutions 2024.
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