On December 12, 2022, First Deputy Prime Minister Pham Binh Minh signed Decree No. 102/2022/ND-CP stipulating the functions, tasks, mandates and organizational structure of the State Bank of Vietnam (SBV). The new Decree will take effect from January 1, 2023 and shall replace Decree No. 16/2017/ND-CP dated February 17, 2017 stipulating the functions, tasks, mandates and organizational structure of the SBV.
SBV Headquarters (Photo: Duc Khanh)
According to Decree No. 102/2022/ND-CP, the SBV is a ministerial agency of the Government, playing the role of the Central Bank of the Socialist Republic of Vietnam. The SBV performs the state management of the monetary, the banking, and the foreign exchange operations; performs the role of a Central Bank related to the issuance of money, and acts as the service bank for the credit institutions and provides monetary services to the Government; and performs the state management of public services under the SBV’s jurisdiction.
Tasks and mandates
The SBV performs the tasks and mandates as stipulated in the Law on the State Bank of Vietnam, Decree No. 123/2016/ND-CP dated September 1, 2016 of the Government stipulating the functions, tasks, mandates and organizational structures of the ministries and ministerial agencies; Decree No.101/2020/ND-CP dated August 28, 2020 of the Government amending and supplementing a number of Articles of Decree No. 123/2016/ND-CP, and the specific tasks and mandates as follows:
Submitting to the Government draft laws, draft resolutions of the National Assembly, draft ordinances, draft resolutions of the Standing Committee of the National Assembly; draft decrees of the Government in accordance with the SBV’s approved annual plans for the formulation of legal documents; and resolutions, projects and schemes as assigned by the Government and the Prime Minister; annual and long-term strategies and plans; national programs, action plans and important projects and programs under the SBV’s jurisdiction.
Submitting to the Prime Minister draft decisions, directives and other legal documents under the SBV’s jurisdiction or as assigned.
Promulgating circulars and other documents under the SBV’s jurisdiction; directing, providing guidance, supervising, inspecting and taking responsibility for the implementation of the legal documents, programs, projects and development plans, which have been issued or approved under the SBV’s jurisdiction.
Developing the annual inflation targets to be submitted to the Government; using tools to implement the national monetary policy, including refinancing, interest rates, exchange rates, regulatory reserves, open market operations, issuance of the SBV bills, and other tools and measures to implement the national monetary policy.
Conducting inventories, statistical surveys, collection and storage of information on the international and domestic economic, financial, monetary and banking operations under the SBV’s jurisdiction; analyzing and making forecast on monetary and banking situations; publicizing information on the monetary and banking operations in line with the applicable laws.
Issuing, amending, supplementing and revoking licenses for the establishment and operations of credit institutions, licenses for the establishment of foreign bank branches, representative offices of foreign credit institutions, other foreign institutions with banking operations in Vietnam; issuing, amending, supplementing and revoking licenses for the provision of intermediary payment services by non-bank institutions; issuing, re-issuing, revising the substances and revoking the institutions’ licenses for the provision of credit information services; issuing and revoking registration certificates of micro-finance programs/projects; approving of the acquisition, sale, division, M&A and liquidation of credit institutions in accordance with the applicable laws.
Deciding on the special control measures over credit institutions which have made serious infringements against the monetary and banking regulations, or are facing financial difficulties, causing risks of compromising the safety of the entire banking sector.
Approving of the tentative lists of persons to be appointed as members of the Boards of Directors, the Boards of Members, the Supervisory Boards, General Managers (Directors)/CEOs of the credit institutions; approving of other changes in line with the Law on Credit Institutions.
Performing the state management on anti-money laundering in line with the Law on Anti-Money Laundering.
Inspecting, supervising banking operations; supervising and inspecting forex, gold trading, and anti-money laundering operations; controlling the credit growth; handling with infringements and violations in the fields of monetary and banking operations, foreign exchange and anti-money laundering in accordance with the applicable laws.
Performing the state management on deposit insurance in accordance with the Law on Deposit Insurance.
Assuming the leading role in making, monitoring, forecasting and analyzing the implementation results of the international payment balances; reporting on the implementation of Vietnam's international payment balances in accordance with the laws; acting as the leading agency in providing data on Vietnam’s international payment balances to the relevant domestic and foreign organizations in accordance with the laws.
Organizing, managing, operating and supervising to ensure the safety and efficiency of the national payment system; providing payment services to the banks; supervising the provision of intermediary payment services; participating in organizing and supervising the operations of the payment systems in the economy; managing the means of payment in the economy.
Performing the state management on foreign currencies, foreign exchange, and gold trading operations: managing foreign exchange operations in current transactions, capital transactions, and use of foreign currencies on the territory of Vietnam; business activities, the provision of forex services, and other transactions related to foreign currencies; managing the State's foreign exchange reserves in accordance with the laws; announcing the exchange rates; deciding on the exchange rate regime and the mechanism for the exchange rate management, etc.
Representing the Socialist Republic of Vietnam, the Government of Vietnam at the International Monetary Fund (IMF), the World Bank Group (WBG), the Asian Development Bank (ADB), the International Investment Bank (IIB), the Bank for International Economic Cooperation (IBEC), the Asian Infrastructure Investment Bank (AIIB), and other international monetary and banking institutions; performing Vietnam's rights and obligations at the international monetary and banking institutions at which the SBV is the representative of Vietnam; etc.
Implementing the international cooperation in the fields of monetary and banking operations and foreign exchange in accordance with the laws; participating and implementing Vietnam's obligations as a member of the international organizations on anti-money laundering.
Other tasks, including but not limited to: maintaining the stability of the monetary and financial systems; performing the professional operations of a central bank; providing special loans to the credit institutions in accordance with the laws; organizing the credit information system and providing credit information services; performing the state management on credit information activities; acting as an agent and performing the banking services for the State Treasury; collaborating with the Ministry of Finance on the issuance of the Government bonds, the Government-guaranteed bonds; managing and organizing the implementation of banking communication activities related to the State management functions of the SBV; etc.
Organizational structure
The Decree stipulates the organizational structure of the SBV, which is composed of 25 entities: (1) Monetary Policy Department, (2) Foreign Exchange Management Department, (3) Payment Department, (4) Department of Credit for Economic Sectors, (5) Forecasting and Statistics Department, (6) International Cooperation Department, (7) Monetary and Financial Stabilization Department, (8) Internal Audit Department, (9) Department of Legal Affairs, (10) Finance and Accounting Department, (11) Human Resources Department, (12) Communications Department, (13) SBV Office, (14) Information Technology Department, (15) Issue and Vault Department, (16) Department for the Management of State Foreign Exchange Reserve, (17) Administration Department, (18) Central Banking Department, (19) Banking Supervision Agency, (20) SBV Municipal and Provincial branches, (21) Banking Strategy Institute, (22) National Credit Information Center of Vietnam, (23) Banking Times, (24) Banking Review, (25) Banking Academy.
The SBV Governor shall submit to the Prime Minister for the promulgation of a Decision stipulating the functions, tasks, mandates and organizational structure of the Banking Supervision Agency, and a list of the state non-business units under the SBV.
The SBV Governor shall issue a decision stipulating the functions, tasks, mandates and organizational structures of the SBV entities in accordance with the laws, except for the Banking Supervision Agency.
The Foreign Exchange Management Department and the Central Banking Department would continue to perform their functions and tasks in accordance with the current regulations until when the SBV Governor issues new decisions stipulating the functions, tasks, mandates and organizational structures of the Department for the Management of State Foreign Exchange Reserves, the Foreign Exchange Management Department, and the Central Banking Department.
The Banking Training School is allowed to complete the on-going tasks and mandates until when the SBV Governor has completed the new organizational arrangements of personnel, finance and assets of the Banking Training School.
Le Hang