Decree No. 16/2017/ND-CP on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam

DECREE

Regulations on functions, tasks, powers and organizational structure of the Government Inspectorate

on the organizational structure of the State Bank of Vietnam

||| Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to Decree No. 123/2016/NĐ-CP dated September 1, 2016 of the Government stipulating the functions, tasks, powers and organizational structure of Ministries and ministerial-level agencies;

At the proposal of the Governor of the State Bank of Vietnam;

The Government promulgates this Decree to regulate the functions, tasks, powers, and organizational structure of the State Bank of Vietnam.

Article 1. Position and Functions

The State Bank of Vietnam (hereinafter referred to as the State Bank) is a ministry-level agency under the Government, the Central Bank of the Socialist Republic of Vietnam; it performs the function of state management over currency, banking activities, and foreign exchange; it performs the functions of the Central Bank regarding issuing currency, banking for credit organizations, and providing monetary services to the Government; it manages public services within its scope of state management.

b) Draft five-year and annual socio-economic development plans for the province; major economic and social balances for the province; draft five-year and annual plans, programs, projects, measures to organize and implement tasks related to socio-economic development, finance-budget, planning-investment, and other tasks within the scope of state management of the Department of Finance as prescribed by law;

The State Bank shall perform the tasks and powers stipulated in the Law on the State Bank of Vietnam, Decree No. 123/2016/NĐ-CP dated September 1, 2016 of the Government prescribing the functions, tasks, powers, and organizational structure of ministries and ministerial-level agencies, and the following specific tasks and powers:

1. Submit 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 according to the annual legislative program and plan of the State Bank approved; projects and programs assigned by the Government, Prime Minister; strategies, plans for annual and long-term development; national target programs, action programs, and important national projects and works within the jurisdiction of the State Bank.

2. Submit draft decisions, directives, and other documents within the scope of management of the State Bank or as assigned by the Prime Minister.

3. Issue circulars and other documents within the scope of state management of the State Bank. Direct, guide, inspect, and be responsible for organizing the implementation of normative legal documents; programs, projects, and development plans that have been issued or approved within the scope of management of the State Bank.

4. Develop annual inflation targets to submit to the Government; use tools to implement national monetary policy, including: refinancing, interest rates, exchange rates, reserve requirements, open market operations, issuance of State Bank bills, and other tools and measures to implement national monetary policy.

5. Organize statistics, statistical surveys, collect, and store information on domestic and foreign economies, finance, currency, and banking within the authority of the State Bank to serve research, analysis, and forecasting of monetary trends to build and manage national monetary policy; disclose information on currency and banking in accordance with the law.

6. Grant, amend, supplement, revoke licenses for the establishment and operation of credit organizations, branches of foreign banks, representative offices of foreign credit organizations, and other foreign organizations engaged in banking activities; grant, revoke licenses for non-bank organizations to provide payment intermediary services; grant, revoke licenses for organizations to provide credit information services; approve mergers, acquisitions, divisions, consolidations, and liquidations of credit organizations in accordance with the law.

7. Decide to apply special measures against credit organizations seriously violating laws on currency and banking, experiencing financial difficulties, posing risks to the stability of the banking system, including: purchasing shares of credit organizations; suspending, temporarily suspending, or removing managers and directors from credit organizations; deciding to merge, consolidate, or dissolve credit organizations; placing credit organizations under special control; performing duties and powers in accordance with the law on bankruptcy for credit organizations.

8. Approve lists of candidates to be elected or appointed as members of the Board of Directors, Board of Members, Supervisory Board members, General Director (Director) of credit organizations; approve other changes in accordance with the Law on Credit Organizations.

9. Implement state management over anti-money laundering in accordance with the law on anti-money laundering.

10. Inspect, audit, supervise banking; inspect and audit foreign exchange activities, gold trading activities, anti-money laundering activities; monitor credit; handle violations of laws in the fields of currency, banking, foreign exchange, and anti-money laundering in accordance with the law.

11. Implement state management over deposit insurance in accordance with the law on deposit insurance.

12. Take the lead in establishing, monitoring, forecasting, and analyzing the results of implementing the balance of payments; report on the implementation of Vietnam's balance of payments in accordance with the law; act as the point of contact for providing balance of payments data for domestic and foreign organizations in accordance with the law.

13. Organize, manage, operate, and supervise the national payment system to ensure safety and efficiency; provide payment services to banks; supervise the provision of payment intermediary services; participate in organizing and supervising the operation of payment systems in the economy; manage payment instruments in the economy.

14. Manage state affairs concerning foreign exchange, foreign exchange activities, and gold trading activities:

a) Manage foreign exchange and foreign exchange transactions in current accounts, capital accounts, and the use of foreign exchange on Vietnamese territory; gold trading, foreign exchange service provision, and other transactions related to foreign exchange; border area foreign exchange activities in accordance with the law;

b) Manage the State Foreign Exchange Reserve in accordance with the law; buy and sell foreign exchange in the domestic market for national monetary policy objectives; buy and sell foreign exchange with the state budget, international organizations, and other sources; buy and sell foreign exchange in the international market and conduct other foreign exchange transactions in accordance with the law;

c) Announce exchange rates; decide on exchange rate regimes and mechanisms for managing exchange rates.

d) Issue and revoke approval documents for foreign exchange business operations and services to credit institutions, foreign bank branches, and other organizations in accordance with the provisions of the law.

đ) Manage foreign exchange activities related to foreign direct investment in Vietnam and Vietnamese investment abroad in accordance with the provisions of the law.

e) Manage gold trading activities in accordance with the law.

15. Implement management over foreign borrowing and repayment activities of residents who are eligible to borrow and repay foreign debts independently in accordance with the law; guide procedures for organizing and implementing registration and changes to foreign loans guaranteed by the Government.

16. Implement management of foreign lending activities, debt recovery from abroad, and guarantees for non-residents of credit institutions and economic organizations in accordance with the provisions of the law.

17. Represent the Socialist Republic of Vietnam and the Government of Vietnam at the International Monetary Fund (IMF), the World Bank Group (WB), the Asian Development Bank (ADB), the International Investment Bank (IIB), the International Economic Cooperation Bank (IBEC), the Asian Infrastructure Investment Bank (AIIB), and other international monetary and banking organizations.

Carry out the rights and obligations of Vietnam at international monetary and banking organizations where the State Bank of Vietnam is the representative; propose to the Government and the Prime Minister policies and measures to develop and expand cooperation relations with these organizations.

18. Take the lead and coordinate with relevant agencies to prepare content, conduct negotiations, and sign international treaties with international financial and monetary organizations where the State Bank of Vietnam is the representative and the official borrower as stipulated in the international treaty according to the division of labor and delegation of authority by the President or the Government.

19. Implement international cooperation in the fields of currency, banking, and foreign exchange in accordance with the provisions of the law; participate and implement Vietnam's obligations as a member of international organizations for preventing and combating money laundering.

20. Stabilize the monetary and financial system:

a) Aggregate, analyze, and forecast monetary and financial conditions; propose measures to prevent systemic risks in the monetary and financial sectors.

b) Develop policies and measures to respond to crises, ensuring stability in the monetary, banking, and financial systems.

21. Perform central bank operations:

a) Organize the design of currency models, printing, minting, storing, and transporting paper and metal currencies; perform issuance, recall, replacement, and destruction of paper and metal currencies.

b) Provide refinancing aimed at supplying short-term capital and payment means to credit institutions;

c) Organize, the operation and development of the monetary market; organize the management and operation of the domestic currency market and the interbank foreign exchange market.

22. Organize the credit information system and provide credit information services; perform state management functions over credit information organizations; analyze and rank corporate and individual credit ratings within the territory of Vietnam.

23. Act as an agent and perform banking services for the State Treasury.

24. Participate with the Ministry of Finance in the issuance of government bonds and government-guaranteed bonds.

25. Approve and organize the implementation of investment projects within its jurisdiction; review and inspect the implementation of investment projects in the banking sector in accordance with the provisions of the law.

26. Organize and direct scientific research, application of technological progress, and environmental protection in the banking sector in accordance with the provisions of the law.

27. Organize training and professional improvement in currency and banking in accordance with the provisions of the law.

28. Decide on specific policies and measures and direct the operational mechanisms of public service units in the currency, banking, and foreign exchange sectors; manage public service units under its jurisdiction in accordance with the provisions of the law.

29. Represent the state ownership interest in credit institutions, financial organizations, and state-owned enterprises in accordance with the provisions of the law.

Use statutory capital to contribute to the establishment of special-purpose enterprises to fulfill the functions and responsibilities of the State Bank of Vietnam as decided by the Prime Minister.

30. Fulfill tasks and exercise powers over associations and non-governmental organizations within the State Bank of Vietnam's administrative management scope in accordance with the provisions of the law.

31. Conduct inspections, audits, handle complaints and reports; prevent and combat corruption, inefficiency, bureaucracy, and favoritism; practice thrift and oppose waste in accordance with the provisions of the law.

32. Decide and direct the implementation of the State Bank of Vietnam's administrative reform program in accordance with the objectives and content of the Government's administrative reform program and the Prime Minister's directives; decide and direct changes in working methods, modernization of offices, civil service culture, and the application of information technology to serve the activities of the State Bank of Vietnam..

33. Manage and organize the implementation of banking industry communication activities related to the State Bank of Vietnam's state management functions.

34. Manage organizational structure, civil servant staffing, number of employees, job positions, cadre structure by profession, and the number of people working in public service units; decide on rotation, transfer, appointment, reappointment, dismissal, resignation, retirement, termination, commendation, disciplinary action; remuneration systems, incentives, training, and professional improvement for cadres, civil servants, officials, and workers under its jurisdiction in accordance with the provisions of the law.

35. Submit to the Prime Minister for approval the recruitment mechanism and remuneration system for cadres and civil servants suitable for the special business operations of the State Bank of Vietnam.

36. Manage finances and assets assigned in accordance with the provisions of the law.

37. Perform other tasks, powers, and responsibilities assigned by the Government and the Prime Minister and in accordance with the provisions of the law.

Article 3. Organizational Structure

1. Department of Monetary Policy.

2. Department of Foreign Exchange Management.

3. Department of Payment.

4. Department of Credit for Economic Sectors.

5. Department of Forecasting and Statistics.

6. Department of International Cooperation.

7. Department of Monetary and Financial Stability.

8. Department of Internal Audit.

9. Legal Affairs Department.

10. Department of Finance and Accounting.

11. Department of Organization and Cadre Management.

12. Department of Mobilization and Awards.

13. Department of Communication.

14. Office.

15. Currency Issuance and Treasury Management Bureau.

16. Banking Supervision Authority.

17. Administrative Services Agency.

18. Trading Department.

19. Provincial Branches.

20. Branches in provinces and centrally governed cities.

21. Institute of Banking Strategy.

22. National Credit Information Center of Vietnam.

23. Banking Times.

24. Banking Magazine.

25. Cadre Training Institute.

26. Banking Academy.

Departments from Clause 1 to Clause 20 of this Article are administrative units assisting the Governor of the State Bank of Vietnam in performing state management functions and central bank functions; departments from Clause 21 to Clause 26 of this Article are public service units serving the state management functions of the State Bank of Vietnam.

The Department of Monetary Policy and the Department of International Cooperation have seven divisions. The Department of Foreign Exchange Management, the Department of Finance and Accounting, the Department of Forecasting and Statistics, and the Department of Credit for Economic Sectors have six divisions. The Department of Internal Audit and the Department of Organization and Cadre Management have five divisions. The Department of Payment and the Legal Affairs Department have four divisions. The Department of Monetary and Financial Stability has three divisions.

The Office has five divisions. The Currency Issuance and Treasury Management Bureau has nine divisions and a branch in Ho Chi Minh City. The Administrative Management Bureau has seven divisions and a branch in Ho Chi Minh City. The Information Technology Bureau has seven divisions and a branch in Ho Chi Minh City. The Trading Department has nine divisions.

Branches in provinces and centrally governed cities: The Hanoi Branch has seven divisions. The Ho Chi Minh City Branch has eight divisions. The branches in Haiphong City, Da Nang City, Can Tho City, Nghe An Province, Dak Lak Province have five divisions. The remaining 56 provincial branches have four divisions.

The Governor of the State Bank shall submit to the Prime Minister for issuance of a Decision stipulating the functions, tasks, powers, and organizational structure of the Banking Inspection and Supervision Agency and the list of other public service units under the State Bank of Vietnam.

The Governor of the State Bank shall issue a Decision stipulating the functions, tasks, powers, and organizational structure of units under the State Bank in accordance with the provisions of the law, except for the Banking Inspection and Supervision Agency.

Article 4. Effective date

1. This Decree takes effect from the date of issuance.

2. This Decree replaces Decree No. 156/2013/NĐ-CP dated November 11, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam.

Article 5. Transitional Provisions

The Banking Inspection and Supervision Agency shall continue to implement according to current legal regulations until the Prime Minister issues a Decision stipulating the functions, tasks, powers, and organizational structure of the Banking Inspection and Supervision Agency.

Article 6. Responsibility for Implementation

The Governor of the State Bank, Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees, and municipal People's Committees directly under the central government are responsible for implementing this Decree./.