| THE NATIONAL ASSEMBLY No: 46/2010/QH12 | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness Ha Noi, day 16 month 06 year 2010 | |
| LAW ON THE STATE BANK OF VIETNAM Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam which was amended and supplemented under Resolution No. 51/2001/QH10; Chapter I GENERAL PROVISIONS Article 1. Scope of regulation This Law provides for the organization and operation of the Stale Bank of Vietnam. Article 2. Position and functions of the State Bank of Vietnam 1. 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. 2. The State Bank is a legal entity with its legal capital being under the state ownership and its head office located in Hanoi. 3. 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 3. National monetary policy and competence to decide on the national monetary policy 1. The national monetary policy consists of national-level decisions on monetary affairs made by competent state agencies, including decisions on the objective of currency value stability which is denoted by the inflation rate and decisions on the use of tools and measures to obtain the set objective. 2. The National Assembly shall decide on annual inflation rate targets by making decisions on consumer price indexes and overseeing the implementation of the national monetary policy. 3. The President shall perform his)her tasks and powers provided by the Constitution and laws in negotiating, concluding and acceding to, in the name of the State of the Socialist Republic of Vietnam, treaties on monetary and banking matters. 4. The Government shall propose the National Assembly to decide on annual inflation rate targets. The Prime Minister or the Governor of the State Bank shall decide on the use of administrative tools and measures to obtain objectives of the national monetary policy according to the Government's regulations. Article 4. Tasks and powers of the State Bank 1. 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. 2. To participate in the elaboration of national socio-economic development strategies and plans. 3. To elaborate banking development strategies for submission to competent state agencies for approval, and organize the implementation of these strategies. 4. 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. 5. To determine annual inflation rate targets for submission by the Government to the National Assembly for decision, and organize the realization thereof. 6. To organize, regulate and develop the monetary market. 7. To organize a monetary and banking statistics and forecast system; to publicize monetary and banking information according to law. 8. 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. 9. 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. 10. 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. 11. To examine, inspect and supervise banks: to handle violations of the monetary and banking laws. 12. 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. 13. To assume the prime responsibility for. and coordinate with concerned agencies in. formulating and implementing anti-money laundering policies and plans. 14. To perform the state management of deposit insurance according to the law on deposit insurance. 15. To assume the prime responsibility for making, monitoring, forecasting and analyzing the international payment balance. 16. 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. 17. To perform the state management of foreign exchange, foreign exchange and gold trading activities. 18. To manage state foreign exchange reserves. 19. 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. 20. 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. 21. To undertake international cooperation in the monetary and banking sector. 22. To represent the State of the Socialist Republic of Vietnam at international monetary and banking institutions. 23. To organize a credit information system and provide credit information services: to perform the state management of credit information providers. 24. To act as an agent and provide banking services for the State Treasury. 25. To join the Ministry of Finance in issuing government bonds and government-guaranteed bonds. 26. To provide professional training in monetary and banking operations; to research and apply banking sciences and technologies. 27. To perform other tasks and exercise other powers provided by law. Article 5. Responsibilities of ministries, ministerial-level agencies and People's Committees at all levels Ministries, ministerial-level agencies and People's Committees at all levels shall, within the ambit of their tasks and powers, coordinate with the State Bank in performing the slate management of monetary and banking operations. Article 6. Interpretation of terms In this Law. the terms below are construed as follows: 1. Banking operation means dealing in and providing on a regular basis one or several of the following operations: a) Receiving deposits; b) Extending credits; c) Providing via-account payment services. 2. Foreign exchange includes: a) Currencies of other countries or the common European currency and other common currencies used in international and regional payment (below referred to as foreign currencies): b) Payment instruments in foreign currencies, including checks, credit cards, bills of exchange, debentures and other payment instruments: c) Valuable papers in foreign currencies, including government bonds, corporate bonds, promissory notes, stocks and other valuable papers; d) Gold belonging to state foreign exchange reserves, gold on residents' offshore accounts; and gold bullions, bars, granules or ingots which are brought into or out of Vietnam's territory. e) Currency of the Socialist Republic of Vietnam which is brought into or out of Vietnam's territory or used for international payment. 3. Foreign exchange operation means residents' and non-residents' operations in current transactions or capital transactions involving the use of foreign exchange in Vietnam's territory, operations of providing foreign exchange services and other transactions related to foreign exchange. 4. State foreign exchange reserves means assets in foreign exchange which are indicated in the State Bank's balance sheet. 5. Foreign exchange rate of Vietnam dong means the price of a unit of a foreign currency in Vietnam's currency. 6. Monetary market means a place for short-term capital transactions. 7. Short-term transaction means an under-12 month transaction of valuable papers. 8. Valuable paper means a proof evidencing the debt-payment obligation of the issuer towards the owner in a certain duration under the interest payment condition and other conditions. 9. National payment system means an inter-bank payment system organized, managed and operated by the State Bank. 10. Intermediary payment service means an intermediary activity for connecting, transmitting and processing e-data on payment transactions between payment service providers and users. 11. Banking inspection means activities carried out by the State Bank to inspect the observance of the monetary and banking laws by inspected subjects. 12. Banking supervision means activities carried out by the State Bank to collect, synthesize and analyze information on supervised subjects through a information and reporting system so as to promptly prevent, detect and handle risks to the safety of banking operations, violations of regulations on safety of banking operations and other relevant laws. Chapter II ORGANIZATION OF THE STATE BANK Article 7. Organization of the State Bank 1. The State Bank shall be organized into a centralized and unified system, comprising an executive apparatus and professional units at its head office, branches, representative offices and other attached units. 2. The organizational structure of the State Bank shall be defined by the Government. 3. The organizational structures, tasks and powers of the units of the State Bank shall be defined by the Governor of the State Bank, except the case prescribed in Clause 2. Article 49 of this Law. 4. The Governor of the State Bank shall decide on the establishment and termination of operation of branches, representative offices and consultancy committees and councils for matters related to the functions and tasks of the State Bank; and decide on the establishment and termination of operation of the units of the State Bank operating in such areas as training in banking operations, banking research, information and scientific theories or provision of treasure-related services, banking information technology services, payment services and credit information services according to his)her competence. Article 8. Leading and managing the State Bank 1. The Governor of the State Bank is a cabinet member, the head and leader of the State Bank who shall take responsibility before the Prime Minister and the National Assembly for the state management in the monetary and banking sector. 2. The Governor of the State Bank has the following tasks and powers: a) To organize and direct the implementation of the national monetary policy according to his) her competence: b) To organize and direct the performance of tasks and the exercise of powers of the State Bank according to this Law and other relevant laws; c) To act as the legal representative of the State Bank. Article 9. Cadres and civil servants of the State Bank The recruitment, employment and management of cadres and civil servants of the State Bank must, in principle, comply with the Law on Cadres and Civil Servants. The Prime Minister shall provide for a mechanism on the recruitment of. and policies applicable to. cadres and civil servants of the State Bank in conformity with professional operations of the State Bank. Chapter III OPERATIONS OF THE STATE BANK Section 1 IMPLEMENTATION OF THE NATIONAL MONETARY POLICY Article 10. Tools for the implementation of the national monetary policy The Governor of the Stale Bank shall decide on the use of tools for the implementation of the national monetary policy, including re-financing, interest rates, exchange rates, compulsory reserves, open-market operations and other tools and measures as prescribed by the Government. Article 11. Re-financing 1. Re-financing means a form of extending credits by the State Bank, aiming to provide short-term capital and payment instruments for credit institutions. 2. The State Bank shall provide for and effect the re-financing to credit institutions in the following forms: a) Granting loans secured by the pledge of valuable papers; b) Discounting valuable papers; c) Other forms. Article 12. Interest rates 1. The Stale Bank shall announce the refinancing interest rate, prime interest rate and other interest rates to serve the regulation of the monetary policy and the fight against usury. 2. In case abnormal developments are seen in the monetary market, the State Bank shall provide for a mechanism for regulating interest rates applicable to credit institutions in their relations with others and their clients and in other credit relations. Article 13. Exchange rates 1. Exchange rates of Vietnam dong shall be determined on the basis of the foreign currency supply and demand in the state-regulated market. 2. The State Bank shall announce exchange rates and decide on the exchange rate regime and management mechanisms. Article 14. Compulsory reserves 1. Compulsory reserves means a sum of money to be deposited by a credit institution at the State Bank to serve the implementation of the national monetary policy. 2. The State Bank shall provide for the compulsory reserve ratio applicable to each type of credit institution and each kind of deposit at credit institutions to serve the implementation of the national monetary policy. 3. The State Bank shall provide for the payment of interests on compulsory reserve deposits and deposits in excess of compulsory reserves applicable to each type of credit institution and each kind of deposit. Article 15. Open-market operations 1. The State Bank shall carry out open-market operations through the purchase and sale of valuable papers with credit institutions. 2. The Stale Bank shall provide for types of valuable papers permitted for trading via open-market operations. Section 2 ISSUANCE OF BANKNOTES AND COINS Article 16. Currency unit The currency unit of the Socialist Republic of Vietnam is "dong". with its national symbol being "d" and international symbol being "VND": one "dong" is equal to ten "hao" and one "hao" is equal to ten "xu". Article 17. Issuance of banknotes and coins 1. The Slate Bank is the sole agency entitled to issue banknotes and coins of the Socialist Republic of Vietnam. 2. Banknotes and coins issued by the Stale Bank arc lawful means of payment on the territory of the Socialist Republic of Vietnam. 3. The State Bank shall ensure the sufficient supply of, and an appropriate ratio between, banknotes and coins for the national economy. 4. Banknotes and coins issued for circulation shall be recorded as "debit" of the national economy and balanced by "credit" of the State Bank. Article 18. Designing, printing, minting, preservation, transportation, distribution and destruction of money 1. The State Bank shall design the denominations, sizes, weights, designs, patterns and other characteristics of banknotes and coins, and submit them to the Prime Minister for approval. 2. The State Bank shall organize the printing, minting, preservation, transportation, distribution and destruction of money. Article 19. Handling of torn or damaged money The State Bank shall determine criteria for classification of torn or damaged money; exchange and withdraw money torn or damaged during the circulation process; and not exchange money which are torn or damaged due to acts of sabotage. Article 20. Withdrawal and replacement of money The State Bank shall withdraw from circulation types of money which are no longer appropriate and issue other types of money for replacement. The withdrawn money may be changed for others of equivalent value within a time limit prescribed by the State Bank. Beyond this time limit, to-be-withdrawn money will be invalid for circulation. Article 21. Specimen and souvenir money The State Bank shall organize the designing, printing, minting and domestic and overseas sale of specimen and souvenir money for collection or other purposes under the Prime Minister's regulations. Article 22. Promulgation and examination of regulations on money issuance operations 1. The Government shall promulgate regulations on money issuance operations, covering activities of printing, minting, preserving, transporting, distributing, withdrawing, replacing and destroying money, and expenses for the issuance of money. 2. The Ministry of Finance shall examine the printing, minting and destruction of money. Article 23. Prohibited acts 1. Making counterfeit money: transporting, storing and circulating counterfeit money; 2. Illegally destroying money; 3. Refusing to receive or circulate money issued by the State Bank which are qualified for circulation. 4. Other prohibited acts as prescribed by law. Section 3 LENDING, GUARANTEE AND PROVISION OF ADVANCES FOR THE STATE BUDGET Article 24. Lending 1. The Stale Bank shall provide short-term loans for credit institutions under Point a. Clause 2. Article 11 of this Law. 2. The State Bank shall consider and decide to grant special loans to a credit institution in the following cases: a) The credit institution falls into insolvency, posing a threat to the stability of the system of credit institutions: b) The credit institution is likely to fall into insolvency due to another serious incident. 3. The State Bank shall not grant loans to individuals and organizations other than credit institutions specified in Clauses I and 2 of this Article. Article 25. Guarantee The State Bank shall not provide guarantee for organizations and individuals to borrow loans, except cases of providing guarantee for credit institutions to borrow foreign loans under the Prime Minister's decision. Article 26. Advances for the state budget The State Bank shall provide advances for the central budget to deal with a temporary deficit in the state budget fund under the Prime Minister's decision. These advance amounts must be refunded within the budgetary year, except special cases which shall be decided by the National Assembly Standing Committee. Section 4 PAYMENT AND TREASURY OPERATIONS Article 27. Opening of accounts and conduct of transactions via accounts 1. The State Bank may open accounts at foreign banks, international monetary and banking institutions and conduct transactions via these accounts. 2. The State Bank shall open accounts and conduct transactions for credit institutions. 3. The State Treasury shall open an account at the State Bank. In provinces, centrally run cities, districts, provincial towns and cities without a State Bank's branch, transactions for the State Treasury shall be conducted under the State Banks* regulations. Article 28. Organization, management, operation and supervision of the national payment system 1. The State Bank shall organize, manage, operate and supervise the national payment system. 2. The State Bank shall manage payment instruments in the national economy. Article 29. Treasury services The State Bank shall provide treasury services through the collection and payment of cash for account owners and transportation, counting, classification and disposal of money in circulation. Article 30. Agency for the State Treasury The State Bank shall act as an agent for the State Treasury in organizing bidding and in issuing, depositing and making payment for treasury bonds and bills. wtab){ $(this).css({'width':'100%','height':'auto','padding':'1%'}); } }); $(".fiximgmobile table").each(function() { var tablew = $(this).width(); if(tablew > wtab){ $(this).css({'width':'100%!important'}); } }); }); | ||