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1. How many state banks are there in Vietnam?
Currently, in Vietnam there is only one state bank, the State Bank of Vietnam, headquartered in Hanoi.
In each province and city there will be a branch of the State Bank of Vietnam.
In addition, in the system of credit institutions, there are the following 4 banks which are State Commercial Banks (100% of charter capital owned by the State):
- Bank for Agriculture and Rural Development (Agribank).
- Global Petroleum Bank Limited.
- Ocean Bank Limited.
- Construction Bank Limited.
(According to the State Bank of Vietnam Electronic Information Portal)
Legal basis: Law on State Bank of Vietnam 2010, Clause 20, Article 3, Decree 102/2022/ND-CP, Clause 2, Article 6, 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 the central bank of the Socialist Republic of Vietnam.
- The State Bank of Vietnam is a legal entity with state-owned legal capital and its headquarters in Hanoi.
- The State Bank of Vietnam 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.
(Article 1 Law on State Bank of Vietnam 2010)
3. Duties and powers of the State Bank of Vietnam
The tasks 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 money; 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 the direction of socialism.
- Participate in developing strategies and plans for the country's socio-economic development.
- Develop a banking industry development strategy, submit it to the competent state agency for approval and organize its implementation.
- Issue or submit to competent state agencies for issuance legal documents on currency and banking; disseminate, popularize and inspect legal documents on currency and banking according to authority.
- Develop annual inflation targets for the Government to submit to the National Assembly for decision and implementation.
- Organize, operate and develop the monetary market.
- Organize a system of statistics and forecasts on currency and banking; publicize information on currency and banking according to the provisions of law.
- Organizing the printing, casting, preservation and transportation of paper money and metal money; performing the operations of issuing, recalling, replacing and destroying paper money and metal money.
- Grant, amend, supplement, and revoke licenses for establishment and operation of credit institutions, licenses for establishment of foreign bank branches, licenses for establishment of representative offices of foreign credit institutions and other foreign organizations with banking activities; grant and revoke licenses for providing intermediary payment services to non-bank organizations; grant and revoke licenses for providing credit information services to organizations; approve the purchase, sale, division, separation, consolidation, merger and dissolution of credit institutions in accordance with the provisions of law.
- Represent the owner of the State's capital portion in enterprises performing the functions and tasks of the State Bank and credit institutions with State capital according to the provisions of law; use legal capital to contribute capital to establish special enterprises to perform the functions and tasks of the State Bank according to the Prime Minister's decision.
- Inspect, examine and supervise banks; handle violations of monetary and banking laws according to law provisions.
- Decide to apply special handling measures to credit institutions that seriously violate the provisions of the law on currency and banking, encounter financial difficulties, and pose a risk of causing insecurity to the banking system, including purchasing shares of credit institutions; suspending, temporarily suspending, or dismissing managers and executives of credit institutions; deciding to merge, consolidate, or dissolve credit institutions; placing credit institutions under special control; performing their duties and powers in accordance with the provisions of the law on bankruptcy of credit institutions.
- Preside over and coordinate with relevant agencies to develop policies, plans and organize implementation of anti-money laundering.
- Implement state management of deposit insurance according to the provisions of law on deposit insurance.
- Preside over the establishment, monitoring, forecasting and analysis of international balance of payments implementation results.
- Organize, manage and supervise the national payment system, provide payment services to banks; participate in organizing and supervising the operation of payment systems in the economy.
- State management of foreign exchange, foreign exchange activities and gold trading activities.
- Management of State foreign exchange reserves.
- Manage borrowing, debt repayment, lending and foreign debt collection in accordance with the law.
- Preside over and coordinate with relevant agencies to prepare content, conduct negotiations and sign international treaties with international financial and monetary organizations of which the State Bank is the representative and is the official representative of the borrower as prescribed in the international treaty as assigned or authorized by the President or the Government.
- Organize international cooperation on currency and banking.
- Represent the Socialist Republic of Vietnam at international monetary and banking organizations.
- Organize credit information system and provide credit information services; perform state management functions for credit information organizations.
- Act as an agent and provide banking services for the State Treasury.
- Participate with the Ministry of Finance in issuing government bonds and government-guaranteed bonds.
- Organize training and professional development in currency and banking; research and apply banking science and technology.
- Other duties and powers as prescribed by law.
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