Consolidated Document number 38/VBHN-NHNN stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam

DECREE

Regulations on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam

Decree No. 102/2022/ND-CP dated December 12, 2022, of the Government stipulates the functions, tasks, powers, and organizational structure of the State Bank of Vietnam, which took effect from January 1, 2023, has been amended and supplemented by:

Decree No. 146/2024/ND-CP dated November 6, 2024, of the Government amends and supplements certain articles of Decree No. 102/2022/ND-CP dated December 12, 2022, of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam and Decree No. 26/2014/ND-CP dated April 7, 2014, of the Government on the organization and operation of the Banking Inspection and Supervision, which has been amended and supplemented by Decree No. 43/2019/ND-CP dated May 17, 2019, of the Government, taking effect from January 5, 2025.

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

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

Pursuant to Decree No. 123/2016/ND-CP dated September 1, 2016, of the Government stipulating the functions, tasks, powers, and organizational structure of ministries and ministerial-level agencies; Decree No. 101/2020/ND-CP dated August 28, 2020, of the Government amending and supplementing certain articles of Decree No. 123/2016/ND-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 the Decree stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam[1].

Article 1. Position and Functions

The State Bank of Vietnam (hereinafter referred to as the State Bank) is a ministerial-level agency of 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 (hereinafter referred to as currency and banking); it performs the functions of the Central Bank regarding the issuance of currency, banking for credit institutions, and providing monetary services to the Government; it manages state services within its jurisdiction.

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 performs the tasks and powers prescribed 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, powers, and organizational structure of ministries and ministerial-level agencies, Decree No. 101/2020/ND-CP dated August 28, 2020, of the Government amending and supplementing certain articles of Decree No. 123/2016/ND-CP, 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 of the State Bank approved and other resolutions, projects, plans assigned by the Government, Prime Minister; strategies, planning, annual and long-term development plans; national target programs, action programs, and important national projects 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, development plans already 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, collection, and storage of information on the economy, finance, currency, and banking both domestically and internationally within the authority of the State Bank; perform analysis and forecasting on currency and banking; disclose information on currency and banking in accordance with the law.

6. Grant, amend, supplement, revoke licenses for the establishment and operation of credit institutions, branches of foreign banks, representative offices of foreign credit institutions, and other foreign organizations engaged in banking activities; grant, amend, supplement, and revoke licenses for non-bank organizations to provide payment intermediary services; grant, reissue, change contents, and revoke licenses for providing credit information services (certificates of eligibility to provide credit information services) for organizations; issue and revoke certificates of registration for financial microcredit programs and projects; approve mergers, acquisitions, divisions, consolidations, and liquidations of credit institutions in accordance with the law.

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

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

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

10. Inspect, supervise, and monitor banking; inspect and supervise foreign exchange activities, gold trading activities, anti-money laundering activities; control credit; handle violations of the law 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. Chair the establishment, monitoring, forecasting, and analyzing the results of the balance of payments; report on the implementation of Vietnam's balance of payments according to the provisions of the law; serve as the focal point for providing Vietnam's balance of payments data to domestic and foreign organizations as stipulated by law.

13. Organize, manage, operate, and supervise the national payment system to ensure its safety and effectiveness; provide payment services to banks; monitor 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 business:

a) Manage foreign exchange transactions in current accounts, capital accounts, and the use of foreign currency within Vietnam; foreign exchange trading, service provision, and other transactions related to foreign exchange; border area foreign exchange activities as prescribed by law;

b) Manage the State’s foreign exchange reserves as prescribed by law; buy and sell foreign currencies in the domestic market for national monetary policy objectives; buy and sell foreign currencies with the State budget, international organizations, and other sources; buy and sell foreign currencies in the international market and conduct other foreign exchange transactions as prescribed by 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 provisions of the law.

g) Manage borrowing and repayment of foreign debt by resident entities that are eligible to borrow and repay foreign debt independently in accordance with the provisions of the law.

Guide procedures and organize the confirmation of registration or changes to foreign loans guaranteed by the government in accordance with the provisions of the law.

Manage lending, debt recovery, and guarantees for non-residents by credit institutions and economic organizations in accordance with the provisions of the law.

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

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

16. Propose to the Government the signing of specific international agreements concerning non-reimbursable ODA without loans from international financial and monetary institutions represented by the State Bank of Vietnam as prescribed by law.

17. Implement international cooperation in monetary, banking, and foreign exchange fields as prescribed by law; participate and implement Vietnam's obligations as a member of international organizations combating money laundering.

18. 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.

19. Perform central bank operations:

a) Organize the design of banknote and coin models; print, mint, store, transport paper money and coins; carry out issuance, recall, replacement, and destruction of paper money and coins;

b) Provide refinancing aimed at supplying short-term funds and payment means to credit organizations; provide refinancing to credit organizations to support specific targets as directed by the Government and Prime Minister;

c) Organize, manage, and develop the money market; manage and operate the domestic currency market and the interbank foreign exchange market.

20. Provide special loans to credit institutions in accordance with the provisions of the law.

21. 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 Vietnam.

22. Act as an agent and provide banking services for the National Treasury.

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

24. Approve investment policies, decide on investment programs and projects under the State Bank of Vietnam's jurisdiction; organize the implementation of monitoring, evaluation, supervision, inspection, and auditing of the implementation of plans, programs, and projects under the State Bank of Vietnam's jurisdiction as prescribed by law.

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

26. Organize training and professional development in money and banking in accordance with the provisions of the law.

27. Decide on specific policies and measures and direct the operational mechanisms of public service units in the monetary field, banking activities, and foreign exchange; manage public service units under its authority as prescribed by law.

28. Perform the role of the owner of the state's share capital 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.

29. Fulfill duties and powers over associations and non-governmental organizations under the State Bank of Vietnam's jurisdiction in accordance with the provisions of the law.

30. Conduct inspections, audits, resolve complaints and reports; prevent and combat corruption, receive citizens, practice thrift, and combat waste in accordance with the provisions of the law.

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

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

33. Manage organizational structure, civil servant staffing, number of employees, job positions, cadre structure by grade, staff structure by profession, and the number of people working in public service units; decide on rotation, transfer, appointment, reappointment, dismissal, resignation, retirement, termination, commendation, discipline; welfare benefits, training, and development systems for cadres, civil servants, staff, and workers under its authority as prescribed by law.

34. Submitting to the Prime Minister for the establishment of mechanisms for recruitment and incentive systems for cadres and civil servants that are appropriate to the special operational activities of the State Bank of Vietnam.

35. Managing financial resources and assets as prescribed by law.

36. Performing other tasks and exercising other powers assigned by the Government and the Prime Minister, as prescribed by 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, Statistics - Monetary and Financial Stability.

6. Department of International Cooperation.

7. Department of Internal Audit.

8. Legal Affairs Department.

9. Department of Finance and Accounting.

10. Department of Organization and Cadres.

11. Department of Communication.

12. Office;

13. Information Technology Agency.

14. Issuance and Treasury Agency.

15. State Foreign Exchange Reserve Management Agency.

16. Anti-Money Laundering Agency.

17. Administrative Services Agency.

18. Trading Department.

19. Banking Inspection and Supervision Authority.

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. Banking Academy.

Units specified from Clause 1 to Clause 20 of this Article shall be administrative units assisting the Governor of the State Bank of Vietnam in performing state management functions and central bank functions; units specified from Clause 21 to Clause 25 of this Article shall be public service units serving the state management functions of the State Bank of Vietnam.

The Department of Monetary Policy, the Department of Forecasting, Statistics - Monetary and Financial Stability shall have 6 divisions. The Department of Credit for Economic Sectors, the Department of Organization and Cadres, the Department of Finance and Accounting, the Department of International Cooperation shall have 5 divisions. The Department of Foreign Exchange Management, the Department of Payment, the Department of Internal Audit shall have 4 divisions. The Legal Affairs Department shall have 3 divisions.

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

The Governor of the State Bank of Vietnam shall issue decisions specifying the functions, tasks, powers, and organizational structure of units under the State Bank of Vietnam in accordance with the law, except for the Banking Inspection and Supervision Authority.

Article 4. Transitional Provisions

1. The Department of Foreign Exchange Management and the Trading Department shall continue to perform their functions and tasks according to current regulations until the Governor of the State Bank of Vietnam issues a decision specifying the functions, tasks, powers, and organizational structure of the State Foreign Exchange Reserve Management Agency, the Department of Foreign Exchange Management, and the Trading Department.

2. The Banking Cadre Training School shall complete its ongoing tasks until the Governor of the State Bank of Vietnam completes the reorganization of the School's structure, personnel, finance, and assets.

Article 5. Effective Date

1. This Decree shall take effect from January 1, 2023.

2. This Decree replaces Decree No. 16/2017/NĐ-CP dated February 17, 2017 of the Government on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam.

Article 6. Responsibility for Implementation

The Governor of the State Bank of Vietnam, Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally governed city People's Committees shall be responsible for implementing this Decree.

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[1] Decree No. 146/2024/NĐ-CP amending, supplementing, and abolishing certain provisions of Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam and Decree No. 26/2014/NĐ-CP dated April 7, 2014 of the Government on the organization and operation of banking inspection and supervision, which has been amended and supplemented by Decree No. 43/2019/NĐ-CP dated May 17, 2019 of the Government, is promulgated based on the following grounds:

"Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

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

Pursuant to the Law on Credit Institutions dated January 18, 2024;

Pursuant to the Inspection Law on November 14, 2022;

Pursuant to the Law on Prevention and Combating Money Laundering dated November 15, 2022;

Pursuant to the Law on Handling Administrative Violations dated June 20, 2012; the Law Amending and Supplementing Certain Provisions of the Law on Handling Administrative Violations dated November 13, 2020;

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

The Government promulgates this Decree amending, supplementing, and abolishing certain provisions of Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam and Decree No. 26/2014/NĐ-CP dated April 7, 2014 of the Government on the organization and operation of banking inspection and supervision, which has been amended and supplemented by Decree No. 43/2019/NĐ-CP dated May 17, 2019 of the Government.”

[2] This provision has been amended pursuant to Article 1 of Decree No. 146/2024/NĐ-CP amending, supplementing, and revoking certain articles of Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam and Decree No. 26/2014/NĐ-CP dated April 7, 2014 of the Government on the organization and operation of the Banking Inspection and Supervision, which has been amended and supplemented by Decree No. 43/2019/NĐ-CP dated May 17, 2019 of the Government, and shall take effect from January 5, 2025.

[3] Article 3 of Decree No. 146/2024/NĐ-CP amending, supplementing, and revoking certain articles of Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam and Decree No. 26/2014/NĐ-CP dated April 7, 2014 of the Government on the organization and operation of the Banking Inspection and Supervision, which has been amended and supplemented by Decree No. 43/2019/NĐ-CP dated May 17, 2019 of the Government, and shall take effect from January 5, 2025, provides as follows:

"Article 3. Effectiveness and responsibility for implementation

1. This Decree shall take effect from January 5, 2025.

2. The Governor of the State Bank of Vietnam, heads of ministerial-level agencies, heads of government-affiliated agencies, chairpersons of provincial and centrally-administered city People's Committees, heads of banking inspection and supervision, and relevant agencies shall be responsible for implementing this Decree.