Decision No. 1440/2004/QĐ-NHNN On Issuing the Regulation on the Organization and Operation of State Bank Branches in Provinces and Cities under Central Government Direct Control

Pursuant to …;

Regarding the issuance of the Regulation on the organization and operation of the State Bank

branch in provinces and centrally governed cities

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GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 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;

At the proposal of the Director of the Testing and Quality Assurance Department,

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

At the proposal of the Director of the Cadre and Civil Servant Department,

Pursuant to …;

Article 1. The accompanying Decision promulgates the "Regulation on the Organization and Operation of the State Bank Branches in Provinces and Centrally Governed Cities."

Article 2. This Decision shall take effect 15 days from the date of publication in the Official Gazette, replacing Decision No. 25/1999/QĐ-NHNN dated January 11, 1999 of the Governor of the State Bank on the issuance of the Regulation on the Organization and Operation of the State Bank Branches in Provinces and Centrally Governed Cities.

Article 3. The Heads of the Office, Department Heads of the Department of Organization and Cadres, Heads of Units under the State Bank, Directors of State Bank Branches in Provinces and Centrally Governed Cities, Chairmen of the Board of Management, General Managers (Directors) of Credit Organizations are responsible for implementing this Decision.

REGULATIONS

Organization and operation of the State Bank branch in province,

centrally governed city

(Issued together with Decision No. 1440/2004/QĐ-NHNN dated November 8, 2004)

of the Governor of the State Bank)

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Chapter 1:

GENERAL PROVISIONS

Article 1. The State Bank Branch in Provinces and Centrally Governed Cities (hereinafter referred to as Branch) is a subordinate unit of the State Bank, subject to centralized and unified leadership and management by the Governor of the State Bank (hereinafter referred to as Governor); it has the task of implementing certain contents within the State's management functions regarding currency and banking activities in the province or centrally governed city, and directly performing certain central bank operations according to the Governor's authorization.

Article 2. The Branch is a direct accounting unit; it has its own seal and balance sheet in accordance with the provisions of the law.

Article 3. The Director manages the Branch's operations, assisted by Deputy Directors; the Director and Deputy Directors are appointed by the Governor. The organization and operation of the Branch follow the principle of democratic centralism and the head system.

Chapter 2:

TASKS AND POWERS

Article 4. The Branch may perform the following tasks and powers according to the Governor's authorization:

1- Serving as the focal point for organizing the dissemination, directing, and implementing state regulatory documents and industry regulations on currency and banking activities to credit organizations and other entities engaged in banking activities within the assigned area.

2- Conducting regular and extraordinary inspections and audits of the organization and operations of credit organizations and other entities engaged in banking activities within the assigned area in compliance with state laws and regulations of the State Bank on currency and banking activities.

3- Requesting credit organizations and other entities engaged in banking activities within the assigned area to report and provide materials and data as stipulated by the Governor and any urgent requirements of the State Bank Branch to fulfill its duties.

4- Organizing research, surveys, investigations, analysis, and forecasting related to the economy concerning currency and banking activities to fulfill the Branch's tasks; participating in opinions with provincial and municipal party committees and authorities in building and developing local socio-economic affairs when requested.

5- Monitoring, urging, inspecting, compiling, evaluating, and reporting on the implementation of regulatory documents within the assigned area along with proposals and recommendations, if any.

6- Issuing and revoking licenses for the establishment and operation of banks for credit organizations and licenses for banking activities for other organizations; deciding on dissolution, approval of division, separation, merger, and consolidation of credit organizations; implementing special control measures over credit organizations within the assigned area.

7- Providing payment services, treasury funds, and other banking services to credit organizations and National Treasury offices within the assigned area.

8- Implementing foreign exchange management operations and measures within the assigned area.

9- Implementing rediscounting and overdraft operations for credit organizations within the assigned area.

10- Implementing measures to ensure the safety of assets, money, and valuable papers stored in the vaults and funds at the Branch during receipt and delivery, and transportation.

11- Directly resolving or requiring credit organizations to resolve complaints and accusations from organizations and citizens; responding to inquiries and suggestions from news agencies about currency and banking activities within the assigned area in accordance with the law.

12- Implementing the information reporting system of the Branch to higher authorities.

13- Organizing credit information work for credit organizations within the assigned area.

14- Managing financial resources and assets allocated according to the provisions of the law.

15- Performing other tasks assigned by the Governor.

Chapter 3:

ORGANIZATION AND MANAGEMENT

Article 5. Organization of the Branch

Based on the tasks authorized by the Governor to be carried out within the assigned area, the Branch's organizational structure may include the following units:

1. Branch Inspection Office;

2. General Affairs and Credit Organization Management Department;

3. Accounting and Payment Department;

4. Currency and Treasury Department;

5. Organization and Administrative Department;

6. Internal Control and Audit Unit.

7. Other Departments and Units as decided by the Governor.

The Branch Inspection Office and the Accounting and Payment Department have their own seals for use in business operations in accordance with the law.

Article 6. The tasks of units within the Branch's organizational structure (collectively referred to as Departments) are implemented in accordance with the attached Appendix.

The operation of the Office shall be managed by the Director; the Deputy Directors assisting the Director shall number from one to two. The Director and Deputy Directors shall be appointed by the Branch Manager based on the分级授权委托制度 of the Governor.

Article 7. The Governor decides on the staffing quota for each Branch based on their assigned functions and tasks and the position of each Branch.

Article 8. Duties and powers of the Director:

1- Organizing the implementation of the Branch's functions and tasks as stipulated in Articles 4 and 5 of this Regulation and being responsible before the Governor and the law for all aspects of the Branch's operations.

2- Deciding on programs, plans, and measures to implement various tasks of the Branch.

3- Managing the staffing quota and utilizing civil servants and officials according to the分级授权委托制度 of the Governor.

4- Directly directing and organizing the inspection and supervision work as prescribed by the Governor, handling violations in the monetary and banking sectors according to the law; organizing and being responsible for internal activity control work at the Branch.

5- Announcing the Branch's activities to civil servants and officials every six months in coordination with the Party Committee and the Trade Union Branch Committee; simultaneously collecting their suggestions and opinions.

6- Approving members of the Board of Directors, Executive Directors, and Supervisory Boards of joint-stock credit organizations and cooperative credit organizations upon authorization from the Governor; representing the State Bank of Vietnam before local legal authorities upon authorization from the Governor.

7- Participating in providing opinions (in writing) to the Chairman of the Board of Directors and General Director of the State Commercial Bank regarding the proposed appointment, reappointment, removal, transfer, commendation, and disciplinary action against the Directors and Deputy Directors of member branches (first-level branches) of the State Commercial Bank within the jurisdiction, upon authorization from the Governor.

In cases of necessity, the Director has the right to recommend to the Governor for review and request the Chairman of the Board of Directors, General Director (Director) of credit institutions, and other entities engaged in banking activities to suspend duties, handle administrative actions, or propose criminal responsibility for employees violating the law within credit institutions.

8- Recommending issues related to the organization and operation of credit institutions and other entities engaged in banking activities within the jurisdiction to higher levels; submitting to the Governor for decision if there is no consensus on these issues.

9- Requesting reports from the Directors of State Commercial Bank Branches, Chairmen of the Board of Directors, General Directors (Directors) of credit institutions, and other entities engaged in banking activities within the jurisdiction on a regular or ad hoc basis to serve the implementation of tasks specified for the State Bank Branches of Provinces and Cities directly under the Central Government.

10- Performing other tasks assigned by the Governor.

Article 9. Duties and powers of the Deputy Director:

1- Assisting the Director in managing certain tasks delegated by the Director and being responsible before the Director and the law for matters authorized.

2- Participating in providing opinions with the Director on implementing various tasks of the Branch according to the principle of centralization, democracy, and the head system.

3- When the Director is absent, a Deputy Director authorized by the Director shall act on behalf of the Director to manage the Branch's general affairs, being responsible before the Director for matters resolved and reporting back when the Director returns.

Chapter 4:

IMPLEMENTING PROVISIONS

Article 10. Amendments and supplements to this Regulation shall be decided by the Governor.

Article 11. The Director of the Cadre and Civil Servant Department shall be responsible for guiding and supervising the implementation of this Regulation.