Decision No. 1131/2004/QD-NHNN on the issuance of the Regulation on the Organization and Operation of the Monetary Policy Department

DECISION

Regarding the issuance of the Regulation on the Organization and Operation ofthe Monetary Policy Department

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GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QĐ10 dated December 12, 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated June 17, 2003;

Pursuant to Decree No. 86/2002/NĐ-CP dated 5/11/2002 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

Pursuant to the Government Decree No. 52/2003/NĐ-CP dated 19/5/2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam; Male;

Based on the proposal of the Monetary Policy Department Director and the Human Resources Department Director;

After reaching agreement with the Minister of Internal Affairs,

DECISION:

Article 1. Issued herewith is the "Regulation on the Organization and Operation of the Monetary Policy Department".

Article 2. This Decision shall take effect 15 days from the date of publication in the Official Gazette and shall replace Decision No. 70/1999/QĐ-NHNN9 dated March 1, 1999 of the Governor of the State Bank of Vietnam on the issuance of the Regulation on the Organization and Operation of the Monetary Policy Department.

Article 3. The Heads of the Office, the Human Resources Department, the Monetary Policy Department, and the Heads of relevant units under the State Bank of Vietnam are responsible for implementing this Decision.

REGULATIONS

ORGANIZATION AND OPERATIONS OF THE MONETARY POLICY DEPARTMENT

(Issued together with Decision No.: 1131/2004/QĐ-NHNNdated September 9, 2004 of the Governor of the State Bank of Vietnam)

PART I

GENERAL PROVISIONS

Article 1. The Monetary Policy Department is a unit within the organizational structure of the State Bank of Vietnam, having the function of advising the Governor on the development and implementation of national monetary policy; performing state management functions in the fields of credit, payment, statistical information, and international balance of payments.

Article 2. The operation of the Monetary Policy Department is directed by the Department Director, assisted by several Deputy Directors; the Department Director and Deputy Directors are appointed by the Governor. The organization and operations of the Monetary Policy Department are carried out according to the principle of centralized democracy and the head system.

PART II

TASKS AND POWERS OF THE MONETARY POLICY DEPARTMENT

Article 3. The Monetary Policy Department has the following tasks and powers:

  1. To lead in drafting the national monetary policy project and the annual plan for additional money supply for circulation to be submitted by the Governor to the Government for consideration and to the National Assembly for decision. It serves as the focal point for advising the Governor on organizing the implementation of the national monetary policy after it is approved by the National Assembly, specifically:

a. To lead in drafting the national monetary policy project and the annual money supply amount to be submitted by the Governor to the Government for consideration and to the National Assembly for decision.

b. To develop plans for implementing annual money supply targets and report on the implementation status according to current regulations.  the situation in implementing according to current regulations.

c. Establishing the operational mechanism of monetary policy tools including: reserve requirements, open market operations, refinancing, interest rates, and other monetary policy tools; proposing implementation measures and coordinating with relevant units to flexibly utilize monetary policy tools.

c. To establish operational mechanisms for monetary policy tools including: reserve requirements, open market operations, refinancing, interest rates, and other monetary policy tools; propose measures for their implementation and coordinate with related units to flexibly utilize these tools.

d. To propose solutions for managing monetary policy and coordination mechanisms in operating monetary policy tools to achieve monetary policy objectives; coordinate with units to propose solutions for developing the financial market.  đ. To monitor, analyze, and forecast the available capital of commercial banks; advise the Governor and the Open Market Operations Management Board on decisions regarding market regulation operations.

 e. To establish mechanisms for raising funds and handle issues related to the implementation of such mechanisms.  No. 61/2020/QH14  and handling issues related during the implementation of this mechanism.

g. To serve as the focal point for building monetary programs committed to the IMF and work with international organizations on matters related to monetary policy.

h. To serve as the focal point for assisting the Governor in providing opinions to Ministries and sectors on economic plans and policies related to national monetary policy.

i. To study and analyze macroeconomic developments in major countries closely linked to Vietnam in terms of finance and trade to assess their impact on Vietnam's economic, financial, investment, trade, and tourism relations with the international community.

k. To study and analyze the financial, monetary, credit, and payment situations of banks and regions, interest rate trends, exchange rate movements on key money markets, as well as international and regional financial and monetary dynamics to serve as a basis for formulating monetary policy.

l. To organize the exploitation, collection, processing, and analysis of information on finance, economy, and money of the world and Vietnam in the form of weekly, monthly reports, and quarterly special studies to serve the department's tasks and provide internal central bank reference materials.  collecting, processing, analyzing financial, economic, and monetary information about the world and Vietnam in weekly, monthly reports, and quarterly special studies to serve the tasks of the Department and provide within the Central Bank as reference materials.

m shall be used.  To coordinate with units in advising the Governor on foreign exchange reserves management, exchange rates, and restructuring the banking system.

2. To draft and advise the Governor on issuing or submitting to competent authorities for issuance legal normative documents on credit, interest rates,  loan guarantees for credit institutions, specifically:

a. To serve as the focal point for drafting and advising the Governor on issuing or submitting to competent authorities for issuance legal normative documents on credit activities of credit institutions, including: ordinary loans, loan guarantees, other forms of credit provision as directed by the Governor.     

b. To establish mechanisms and policies for preferential loans and preferential interest rates for social policy beneficiaries as directed by the Governor.

c. To monitor and evaluate domestic and international interest rate trends, combining with other factors to establish mechanisms for managing interest rate tools and propose management solutions, including: refinancing interest rates, discount rates, overnight lending rates applied in electronic interbank payments and settlement, deposit interest rates in VND and foreign currencies at the State Bank of Vietnam; publish interest rate levels; adjust various interest rates according to management mechanisms in each period.  d. To participate in negotiating technical assistance on policy, credit mechanisms, and interest rates for projects funded by international financial and credit organizations; publish interest rates for these projects to determine wholesale interest rates.

đ. To lead in establishing mechanisms and handling issues related to derivative market operations, interest rates, and prices of financial services products of credit institutions.

d. Leading the establishment of mechanisms and handling issues related to derivative transactions of the money market, interest rates, prices of banking services provided by credit organizations.

e. Monitor and advise on the interest rates of Treasury bills and bonds issued by the State Treasury, the interest rates for state investment loans, and other preferential interest rates as required by  the Ministry of Finance and the Government.

g. Monitor and coordinate with provincial and centrally-administered city branches in implementing and supervising credit policies, loan guarantee mechanisms, and interest rates; propose solutions to address suggestions, difficulties, and issues raised by credit institutions and borrowers related to these policies and mechanisms.

h. Coordinate in drafting reports of the State Bank and other agencies on credit policy, loan guarantee mechanisms, and interest rates.

3. Draft and advise the Governor to issue or submit to competent authorities for issuance legal regulations on payment systems, development of payment systems, and payment instruments; specifically:

a. Lead in drafting and advising the Governor to issue or submit to competent authorities for issuance legal regulations on payment activities, development of payment systems, and payment instruments.

b. Serve as the focal point and coordinate with relevant units to implement and supervise provincial and centrally-administered city branches and organizations providing payment services to comply with payment regulations; propose solutions to address suggestions, difficulties, and issues raised by payment service providers.

c. Lead and coordinate with units to establish a reporting index system for the entire payment system; monitor and analyze payment data to advise the Governor on the payment situation within the banking system.

d. Lead in monitoring, analyzing, evaluating, summarizing, and drafting reports on  payment activities.

đ. Manage the issuance and use of non-cash payment tools, study and issue new types of payment tools suitable for Vietnam's reality. Male.

4. Develop statistical work in the banking sector; establish a reporting system for statistics and guide, inspect the implementation by units; propose organizing statistical surveys in the sector. Establish the monetary balance sheet of the State Bank and the entire sector; specifically:

a. Lead in drafting and submitting to the Governor for decision-making a unified reporting system for statistics throughout the banking sector; provide guidance, urge, and resolve issues during implementation.

b. Coordinate with relevant units to inspect compliance with the statistical reporting system by units in the banking sector and report on the compliance status of these units.

c. Collect and compile financial and banking data as prescribed; prepare detailed and consolidated monetary balance sheets of the State Bank, credit institutions, and the entire sector; prepare credit reports by economic sectors, regions, industries, and reports on capital mobilization by credit institutions by region.

d. Collect data, prepare monthly, quarterly, six-monthly, nine-monthly, and annual forecasts of monetary and credit indicators as prescribed.

đ. Prepare regular statistical journals as prescribed.

e. Lead and coordinate with units to compile comprehensive and detailed data sent to the International Cooperation Department to provide to the IMF periodically; serve as the focal point for providing data to the IMF, international organizations, and foreign entities regarding monetary statistics.

g. Serve as the focal point for providing data to the Vietnamese page Male on the International Financial Statistics (IFS) publication of the IMF monthly.

h. Serve as the focal point for providing periodic monetary and credit data to authorized organizations and individuals.

i. Serve as the focal point for developing statistical surveys in the sector; coordinate with the Inspectorate of the General Statistics Office to conduct inspections of statistical work in the banking sector.

5. Draft reports, analyze, and evaluate the results of monetary policy implementation, banking operations, and other macroeconomic conditions to support the Governor's management and report to competent authorities, specifically:

a. Monitor, analyze, and forecast domestic economic conditions; draft inflation and macroeconomic trend reports quarterly, semi-annually, and annually to support research and management of monetary policy and the use of monetary policy tools.

b. Prepare weekly briefs, monthly, quarterly, semi-annual, and annual reports; analyze monetary and credit conditions.

c. Serve as the focal point for researching and monitoring macroeconomic policies and management measures by relevant agencies to support analysis, forecasting, and direction-setting for monetary policy and banking operations.

d. Serve as the focal point for monitoring and drafting regional and industry economic reports, the results of economic orientations, economic structure transformation, and other macroeconomic-related reports.

6. Draft and advise the Governor to issue or submit to competent authorities for issuance legal regulations on the provision of international balance of payments data; prepare, report, monitor, and analyze the implementation and forecast the international balance of payments of Vietnam quarterly and annually for the Governor to report to the Government, specifically:

a. Lead in drafting and advise the Governor to issue or submit to competent authorities for issuance legal regulations on the provision of international balance of payments data; provide guidance on the implementation of these legal regulations within their authority.

b. Collect and compile information on international balance of payments indicators through the banking system and related ministries and sectors such as trade and service exports and imports, investment income, foreign direct investment, foreign borrowing and repayment, money and deposits.

c. Prepare actual implementation data of Vietnam's international balance of payments Male and forecast for subsequent periods.

d. Draft reports evaluating the implementation of Vietnam's international balance of payments Male in the reported quarter and forecast for the next quarter for the Governor to report to the Prime Minister as prescribed.

đ. Study theoretical and practical aspects of the international balance of payments of other countries, combining with Vietnam's actual conditions to gradually improve the quality of data collection, compilation, and analysis of Vietnam's international balance of payments.

e. Serve as the point of contact for providing international balance of payments data of Vietnam to the International Monetary Fund, foreign banks, and organizations in accordance with the law. Male  7. Take the lead or coordinate with relevant units in drafting laws, ordinances, and other projects related to currency and banking activities, as well as policies related to the implementation of monetary policy.

8. Manage the library activities of the State Bank of Vietnam. Lead and coordinate with relevant units in compiling and issuing annual reports and publications of the State Bank.

9. Perform other tasks assigned by the Governor.

. The organizational structure of the Monetary Policy Department includes:

CHAPTER III

ORGANIZATIONAL STRUCTURE AND MANAGEMENT

Article 4The General Affairs Office;

1-     The Monetary Policy and Available Capital Management Office;

2-     The Credit Policy and Interest Rate Office;

3-     The Economic Analysis and Forecasting Office;

4-     The International Balance of Payments Office;

5-     The Statistics Office.

6-     The duties of the Offices and independent specialists are defined and assigned by the head of the Monetary Policy Department in accordance with this Regulation.

The working system of the Monetary Policy Department operates under a mechanism combining independent specialist positions with office organization.

. Duties and authorities of the Department Head

Article 5. Duties and authorities of the Deputy Department Head

1. Assist the Department Head in organizing the effective implementation of the unit's functions and responsibilities; directly direct and manage certain aspects of work according to the assignment of the Department Head and be responsible to the Department Head for the assigned tasks.

3. When the Department Head is absent, a Deputy Department Head authorized by the Department Head shall handle the Department's affairs, be responsible for the results of the work completed, and must report back when the Department Head is present.

Any amendment or supplementation to this Regulation shall be decided by the Governor of the State Bank.

4. Acting on behalf of the Governor to sign administrative documents within their authority.

Article 6.  Duties and powers of the Deputy Head of the Department

1. Assisting the Head of the Department in effectively organizing the performance of the unit's functions and tasks; directly directing and managing certain aspects of work according to the division of labor by the Head of the Department and being responsible to the Head of the Department for assigned tasks.

2. Signing on behalf of the Department Head on administrative documents as delegated by the Department Head.

3. When the Head of the Department is absent, a Deputy Head of the Department authorized to act on behalf of the Head of the Department to handle the Department's affairs, be responsible for the results of the work resolved, and must report back when the Head of the Department is present.

PART IV

IMPLEMENTING PROVISIONS

Article 7. Amendments and supplements to this Regulation shall be decided by the Governor of the State Bank.