According to Article 2 of the Law on State Bank of Vietnam 2010, the State Bank of Vietnam is regulated as follows:
The State Bank of Vietnam (SBV) is a ministerial-level agency of the Government, the central bank of the Socialist Republic of Vietnam. The State Bank is a legal entity, with legal capital owned by the State, headquartered in Hanoi .
The State Bank performs the function of state management of currency, banking and foreign exchange activities; performs the function of the Central Bank in issuing money, banking of credit institutions and providing monetary services to the Government .
On the other hand, according to the provisions of Article 4 of the Law on Credit Institutions 2010, it is explained as follows:
Credit institutions include banks, non-bank credit institutions, microfinance institutions and people's credit funds. In particular, according to the nature and objectives of operations, types of banks include commercial banks, policy banks and cooperative banks.
Non-bank credit institutions include finance companies, financial leasing companies and other non-bank credit institutions.
Microfinance institutions are a type of credit institution that primarily performs a number of banking activities to meet the needs of low-income individuals, households and micro-enterprises.
People's credit funds are credit institutions voluntarily established by legal entities, individuals and households in the form of cooperatives to carry out a number of banking activities in accordance with the provisions of this Law and the Law on Cooperatives with the main goal of supporting each other in developing production, business and life.
The system of credit institutions is described by the State Bank in the following diagram:
Source: SBV.
How many types of commercial banks are there?
According to Clause 2, Article 4 of the Law on Credit Institutions 2010, according to the nature and objectives of operations, types of banks include commercial banks, policy banks, and cooperative banks.
In which, commercial bank is a type of bank that is allowed to carry out all banking activities and other business activities according to the provisions of the Law on Credit Institutions 2010 with the aim of profit.
Based on the form of charter capital ownership of commercial banks, commercial banks include the following types:
- State Commercial Bank
- Joint stock commercial bank
- 100% foreign-owned bank
- Joint venture bank.
Source: https://vtcnews.vn/co-nhung-loai-hinh-ngan-hang-nao-ar906735.html
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