Decision No. 18/2024/QD-TTg stipulating the functions and duties of the Banking Inspection and Supervision Agency in Vietnam
Decision No. 18/2024/QD-TTg stipulating the functions and duties of the Banking Inspection and Supervision Agency in Vietnam
On November 6, 2024, the Prime Minister of the Government of Vietnam issued Decision 18/2024/QD-TTg regulating the functions, tasks, powers, and organizational structure of the Banking Supervision and Inspection Agency under the State Bank of Vietnam.
Decision 18/2024/QD-TTg takes effect from January 5, 2025, and replaces Decision 20/2019/QD-TTg.
Article 1 of Decision 18/2024/QD-TTg specifies the position and function of the Banking Supervision and Inspection Agency as an equivalent unit to a General Department under the State Bank of Vietnam as follows:
- Performing advisory functions to assist the Governor of the State Bank in state management for credit institutions, branches of foreign banks, state management in bank inspection, supervision, citizen reception, complaint resolution, denunciation, anti-corruption, negative actions, and deposit insurance.
- Performing administrative inspection, specialized inspection, and banking supervision within the fields under the state management scope of the State Bank, citizen reception, complaint resolution, denunciation, and anti-corruption, negative actions according to legal regulations and assignments of the Governor of the State Bank.
The Banking Supervision and Inspection Agency has legal standing, a seal with the national coat of arms, a separate account as prescribed by law, and is headquartered in Hanoi.
Decision No. 18/2024/QD-TTg stipulating the functions and duties of the Banking Inspection and Supervision Agency in Vietnam (Image from the Internet)
What are the components of the organizational structure of the Banking Supervision and Inspection Agency in Vietnam?
According to Article 3 of Decision 18/2024/QD-TTg, the organizational structure is specified as follows:
Article 3. Organizational Structure
- Administrative Inspection Department (abbreviated as Department I).
- Safety Policy in Banking Operations Department (abbreviated as Department II).
- Office.
- Banking Inspection and Supervision Department I (abbreviated as Department I).
- Banking Inspection and Supervision Department II (abbreviated as Department II).
- Banking Inspection and Supervision Department III (abbreviated as Department III).
- System Safety Supervision Department for Credit Institutions (abbreviated as Department IV).
The Head of the Banking Inspection and Supervision Department is authorized to issue inspection decisions for banking inspection subjects assigned (except inspections decided by the Chief of Banking Supervision and Inspection according to the law on the organization and operation of the Banking Supervision and Inspection), executes duties and powers of the decision-making inspector and administrative sanction as per legal provisions.
The Governor of the State Bank is responsible for specifying the functions, tasks, powers, and organizational structure of the units under the Banking Supervision and Inspection Agency.
Thus, the organizational structure of the Banking Supervision and Inspection Agency includes the following entities:
- Administrative Inspection Department
- Safety Policy in Banking Operations Department
- Office
- Banking Inspection and Supervision Department 1
- Banking Inspection and Supervision Department 2
- Banking Inspection and Supervision Department 3
- System Safety Supervision Department for Credit Institutions
Note: The Governor of the State Bank determines the functions, tasks, powers, and organizational structure of the units under the Banking Supervision and Inspection Agency.
What are types of banks in Vietnam?
According to Article 4 of Law on Credit Institutions 2024:
Article 4. Definition of Terms
In this Law, the following terms are defined as follows:
[...]
- A bank is a credit institution that can conduct all banking activities as stipulated by this Law. Types of banks include commercial banks, policy banks, cooperative banks.
[...]
According to the above regulation, there are 03 types of banks as follows:
[1] Commercial Bank is a type of bank that can conduct all banking activities and other business activities according to regulations for profit purposes.
[2] Policy Bank is established by the Prime Minister of the Government of Vietnam and operates not for profit to implement the state’s socio-economic policies.
[3] Cooperative Bank is a bank for all people's credit funds, established by contributions from people's credit funds and certain legal entities, primarily aimed at system linkage, financial support, and capital harmonization within the system of people's credit funds.
