What are the tasks and powers of the State Bank of Vietnam?

What are the tasks and powers of the State Bank of Vietnam? (Internet image)

1. Position and functions of the State Bank of Vietnam

- The State Bank of Vietnam (below referred to as the State Bank) is a ministerial-level agency of the Government and the central bank of the Socialist Republic of Vietnam.

- The State Bank is a legal entity with its legal capital being under the state ownership and its head office located in Hanoi.

- The State Bank performs the state management of monetary, banking and foreign exchange (below referred to as monetary and banking) operations and performs the function of a central bank in issuing money, a bank of credit institutions and a provider of monetary services for the Government.

(Article 2 of the Law on State Bank of Vietnam 2010)

2. Tasks and powers of the State Bank of Vietnam

Tasks and powers of the State Bank of Vietnam are specified in Article 4 of the Law on State Bank of Vietnam 2010, including:

- To conduct operations for the purpose of currency value stability; to assure the safety for banking operations and the system of credit institutions; to assure the safety and effectiveness of the national payment system; and to contribute to accelerating socio-economic development along the socialist orientation.

- To participate in the elaboration of national socio-economic development strategies and plans.

- To elaborate banking development strategies for submission to competent state agencies for approval, and organize the implementation of these strategies.

- To promulgate or propose competent state agencies to promulgate legal documents on monetary and banking matters; to propagate, disseminate and examine legal documents on monetary and banking matters according to its competence.

- To determine annual inflation rate targets for submission by the Government to the National Assembly for decision, and organize the realization thereof.

- To organize, regulate and develop the monetary market.

- To organize a monetary and banking statistics and forecast system; to publicize monetary and banking information according to law.

- To organize the printing, minting, preservation and transportation of banknotes and coins: and to conduct operations of issuing, withdrawing, replacing and destroying banknotes and coins.

- To grant, modify, supplement or revoke establishment and operation licenses of credit institutions, licenses for establishing branches of foreign banks, licenses for establishing representative offices of foreign credit institutions and other foreign organizations with banking operations; lo grant or revoke licenses for provision of intermediary payment services for non-bank institutions; to grant or revoke licenses for provision of credit information services to organizations: to approve the acquisition, sale, division, splitting, consolidation, merger and dissolution of credit institutions according to law.

- To act as the representative of the state capital portions in enterprises performing its functions and tasks and in credit institutions with state capital according to law; to use its legal capital to contribute capital for establishing special enterprises to perform its functions and tasks under the Prime Minister's decision.

- To examine, inspect and supervise banks: to handle violations of the monetary and banking laws.

- To decide on the application of special handling measures to credit institutions which commit severe violations of the monetary and banking law-s or meet with financial difficulties, posing a threat to the safety of the banking system. These measures include purchasing shares from credit institutions; suspending or removing from post managers or executive officers of credit institutions; deciding on the merger, consolidation or dissolution of credit institutions; placing credit institutions under special control; and performing its tasks and powers as prescribed by the law on bankruptcy of credit institutions.

- To assume the prime responsibility for. and coordinate with concerned agencies in. formulating and implementing anti-money laundering policies and plans.

- To perform the state management of deposit insurance according to the law on deposit insurance.

- To assume the prime responsibility for making, monitoring, forecasting and analyzing the international payment balance.

- To organize, manage and supervise the national payment system and provide payment services for banks; to participate in organizing and supervising the operation of payment systems in the economy.

- To perform the state management of foreign exchange, foreign exchange and gold trading activities.

- To manage state foreign exchange reserves.

- To manage the borrowing and repayment of foreign loans and the provision of loans to foreign parties and recovery of foreign debts according to law.

- To assume the prime responsibility for. and coordinate with concerned agencies in, preparing for and conducting the negotiation for and conclusion of treaties with international financial or monetary institutions to which the Stale Bank acts as a representative and to act as the official representative of the borrower defined in treaties under the assignment or authorization of the President or the Government.

- To undertake international cooperation in the monetary and banking sector.

- To represent the State of the Socialist Republic of Vietnam at international monetary and banking institutions.

- To organize a credit information system and provide credit information services: to perform the state management of credit information providers.

- To act as an agent and provide banking services for the State Treasury.

- To join the Ministry of Finance in issuing government bonds and government-guaranteed bonds.

- To provide professional training in monetary and banking operations; to research and apply banking sciences and technologies.

- To perform other tasks and exercise other powers provided by law.

Diem My

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