How many state-owned banks does Vietnam have?

Báo Quốc Tế•02/12/2023

How many state-owned banks does Vietnam have? What are the duties and powers of the State Bank of Vietnam ? Please read the article below to find out.

Việt Nam có bao nhiêu ngân hàng nhà nước?

1. How many state-owned banks does Vietnam have?

Currently, Vietnam has only one state-owned bank, the State Bank of Vietnam, with its headquarters located in Hanoi .

Each province and city will have a branch of the State Bank of Vietnam.

In addition, within the system of credit institutions, there are the following four banks that are State-owned Commercial Banks (100% owned by the State):

- Agricultural and Rural Development Bank ( Agribank ).

- Global Petroleum Bank Limited.

- Ocean Bank Limited.

- Construction Bank Limited Liability Company.

(According to the State Bank of Vietnam's electronic portal)

Legal basis: Law on the State Bank of Vietnam 2010, Clause 20, Article 3 of Decree 102/2022/ND-CP, Clause 2, Article 6 of the Law on Credit Institutions 2010

2. Position and functions of the State Bank of Vietnam

- The State Bank of Vietnam is a ministerial-level agency of the Government, and is the central bank of the Socialist Republic of Vietnam.

- The State Bank of Vietnam is a legal entity with registered capital owned by the state, and its headquarters are located in Hanoi.

- The State Bank of Vietnam performs the function of state management over monetary affairs, banking activities, and foreign exchange; it also performs the functions of a central bank in issuing currency, acting as the bank for credit institutions, and providing monetary services to the Government.

(Article 1 of the Law on the State Bank of Vietnam 2010)

3. Duties and powers of the State Bank of Vietnam

The duties and powers of the State Bank of Vietnam are stipulated in Article 3 of the Law on the State Bank of Vietnam 2010, including:

- The State Bank's activities 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; and contribute to promoting socio-economic development in accordance with socialist principles.

- Participate in developing strategies and plans for the socio-economic development of the country.

- Develop a strategy for the development of the banking sector, submit it to the competent state authorities for approval, and organize its implementation.

- Issuing or submitting to competent state agencies for issuance of legal documents on currency and banking; disseminating, publicizing, and inspecting, within their authority, legal documents on currency and banking.

- Develop annual inflation targets for the Government to submit to the National Assembly for approval and implementation.

- Organizing, managing, and developing the monetary market.

- Establish a system for statistics and forecasting on currency and banking; publicly disclose information on currency and banking as prescribed by law.

- Organizing the printing, minting, storage, and transportation of banknotes and coins; carrying out the operations of issuing, withdrawing, replacing, and destroying banknotes and coins.

- Granting, amending, supplementing, and revoking licenses for the establishment and operation of credit institutions, licenses for the establishment of branches of foreign banks, licenses for the establishment of representative offices of foreign credit institutions and other foreign organizations engaged in banking activities; granting and revoking licenses for the operation of payment intermediary services for non-bank organizations; granting and revoking licenses for the operation of credit information services for organizations; approving the purchase, sale, division, separation, merger, consolidation, and dissolution of credit institutions in accordance with the law.

- To represent the State's ownership stake in enterprises performing the functions and tasks of the State Bank of Vietnam and state-owned credit institutions as prescribed by law; to use statutory capital to contribute capital to establish specialized enterprises to perform the functions and tasks of the State Bank of Vietnam as decided by the Prime Minister.

- Inspect, audit, and supervise banks; handle violations of monetary and banking laws in accordance with legal regulations.

- Decisions to apply special measures to credit institutions that seriously violate regulations of the law on currency and banking, are facing financial difficulties, and pose a risk to the safety of the banking system, including purchasing shares of the credit institution; suspending, temporarily suspending, or dismissing the management and executive positions of the credit institution; deciding on the merger, consolidation, or dissolution of the credit institution; placing the credit institution under special control; and performing their duties and powers as prescribed by the law on bankruptcy for credit institutions.

- To chair and coordinate with relevant agencies in developing policies, plans, and organizing the implementation of anti-money laundering measures.

- To exercise state management over deposit insurance in accordance with the law on deposit insurance.

- Responsible for preparing, monitoring, forecasting, and analyzing the results of the international balance of payments.

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

- State management of foreign exchange, foreign exchange operations, and gold trading activities.

- Managing the State's foreign exchange reserves.

- Managing foreign borrowing, repayment, lending, and debt collection in accordance with the law.

- To preside over and coordinate with relevant agencies in preparing the content, conducting negotiations, and signing international treaties with international financial and monetary organizations where the State Bank of Vietnam is the representative and official representative of the borrower as stipulated in the international treaty, as assigned or authorized by the President or the Government.

- Organizing and implementing international cooperation on monetary and banking matters.

- Representing the Socialist Republic of Vietnam at international monetary and banking organizations.

- To organize the credit information system and provide credit information services; to perform the function of state management over organizations operating in the credit information sector.

- Acting as an agent and providing banking services for the State Treasury.

- Participate with the Ministry of Finance in the issuance of government bonds and government-guaranteed bonds.

- Organizing training and professional development courses in monetary and banking matters; researching and applying banking science and technology.

- Other duties and powers as prescribed by law.

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