The Position and Function of the State Bank of Vietnam as Prescribed
Position and Function of the State Bank of Vietnam as Prescribed
The position and function of the State Bank of Vietnam are prescribed in Article 2 of the Law on the State Bank of Vietnam 2010 with the following content:
- The State Bank of Vietnam (hereinafter referred to as the State Bank) is an agency equivalent to a ministry under the Government of Vietnam and the central bank of the Socialist Republic of Vietnam.
- The State Bank is a legal entity, with charter capital owned by the state, headquartered in the capital city of Hanoi.
- The State Bank performs the state management function over monetary, banking activities, and foreign exchange (hereinafter referred to as monetary and banking); performs the central bank functions on issuing currency, acting as the bank of credit institutions, and providing monetary services for the Government of Vietnam.
The above is the answer regarding the position and function of the State Bank of Vietnam. You can find more information on this matter in the Law on the State Bank of Vietnam 2010.
Tasks and Powers of the State Bank of Vietnam
Based on Article 4 of the above document, the provisions are as follows:
The activities of the State Bank aim to stabilize the value of the currency; ensure the safety of banking operations and the system of credit institutions; ensure the safety and efficiency of the national payment system; contribute to promoting socio-economic development in line with socialist orientation.
Participate in building the country's socio-economic development strategy and plans.
Develop the banking sector development strategy for submission to the competent state agency for approval and organize its implementation.
Issue or submit to the competent state agency for the issuance of legal documents on monetary and banking; disseminate, popularize, and inspect the implementation of legal documents on monetary and banking within its authority.
Develop annual inflation targets for the Government of Vietnam to submit to the National Assembly for decision and organize their implementation.
Organize, operate, and develop the monetary market.
Organize a statistical and forecasting system on monetary and banking; publicize information on monetary and banking according to legal regulations.
Organize the printing, minting, safeguarding, transporting of banknotes and coins; perform the tasks of issuing, withdrawing, replacing, and destroying banknotes and coins.
Issue, amend, supplement, and revoke licenses for the establishment and operation of credit institutions, licenses for the establishment of foreign bank branches, licenses for the establishment of representative offices of foreign credit institutions, and other foreign organizations with banking activities; issue and revoke licenses for providing intermediary payment services for non-bank institutions; issue and revoke licenses for providing credit information services for organizations; approve the purchase, sale, division, separation, merger, consolidation, and dissolution of credit institutions as prescribed by law.
Act as the representative owner of state capital in enterprises performing the functions and tasks of the State Bank, credit institutions with state capital as prescribed by law; use statutory capital to contribute to the establishment of special enterprises to perform the functions and tasks of the State Bank as decided by the Prime Minister of the Government of Vietnam.
Inspect, examine, and supervise banking; handle violations of the laws on monetary and banking as prescribed by law.
Decide on the application of special measures to handle credit institutions that seriously violate the laws on monetary and banking, have financial difficulties, and pose a risk to the safety of the banking system, including buying shares of credit institutions; suspend, temporarily suspend, and dismiss managers and executives of credit institutions; decide on the merger, consolidation, and dissolution of credit institutions; place credit institutions under special control; perform its tasks and powers according to bankruptcy laws regarding credit institutions.
Preside and cooperate with competent agencies in developing policies, plans, and organizing the implementation of anti-money laundering activities.
Perform state management over deposit insurance as prescribed by the laws on deposit insurance.
Preside over the preparation, monitoring, forecasting, and analysis of the results of the international payment balance.
Organize, manage, supervise the national payment system, and provide payment services to banks; participate in organizing and supervising the operation of payment systems within the economy.
Perform state management over foreign exchange, foreign exchange activities, and the gold business.
Manage the State's foreign exchange reserves.
Manage borrowing, repayment of debts, lending, and debt collection with foreign countries according to legal regulations.
Preside and cooperate with relevant agencies to prepare content, conduct negotiations, sign international treaties with international monetary and financial organizations where the State Bank is a representative and the official representative of the borrower as stipulated in the international treaty as assigned or authorized by the President or the Government of Vietnam.
Organize the implementation of international cooperation on monetary and banking.
Represent the Socialist Republic of Vietnam at international monetary and banking organizations.
Organize the credit information system and provide credit information services; perform state management functions over organizations operating credit information.
Act as an agent and perform banking services for the State Treasury.
Coordinate with the Ministry of Finance on the issuance of Government bonds and bonds guaranteed by the Government of Vietnam.
Organize training and professional development on monetary and banking; research and apply banking science and technology.
Other tasks and powers as prescribed by law.
Respectfully!
