Decree No. 86/SL Regarding the Establishment of the State Bank of Vietnam

DECREE

OF THE CHAIRMAN OF THE GOVERNMENT OF THE DEMOCRATIC REPUBLIC OF VIETNAM

NUMBER 86 SEPTEMBER 17, 1947

PRESIDENT OF THE VIETNAM DEMOCRATIC REPUBLICIC GOVERNMENT

PURSUANT TO THE DECISION OF THE COUNCIL OF MINISTERS ON NOVEMBER 26, 1945, CONCERNING THE ISSUE OF VIETNAMESE BANKNOTES;

PURSUANT TO THE DECISION OF THE COUNCIL OF MINISTERS ON SEPTEMBER 12, 1947,

AFTER CONSULTATION WITH THE STANDING NATIONAL ASSEMBLY;

ISSUES THE DECREE:

Article 1

NOW ESTABLISHES A STATE BANK CALLED THE VIETNAM NATIONAL BANK.

Article 2

THE VIETNAM NATIONAL BANK HAS THE EXCLUSIVE RIGHT TO ISSUE BANKNOTES.

THE LIMIT ON THE ISSUE OF BANKNOTES AND THE CONDITIONS FOR ISSUANCE SHALL BE DETERMINED BY A DECREES AFTER CONSULTATION WITH THE STANDING NATIONAL ASSEMBLY.

Article 3

THE VIETNAM NATIONAL BANK SHALL HAVE THE FOLLOWING RESPONSIBILITIES:

1- TO KEEP PRECIOUS METALS FOR THE STATE;

2- TO SERVE AS A BANK FOR THE STATE TREASURY;

3- TO LEND CAPITAL TO STATE BUSINESS ORGANIZATIONS.

Article 4

THE VIETNAM NATIONAL BANK SHALL HAVE THE EXCLUSIVE RIGHT TO CARRY OUT FOREIGN EXCHANGE OPERATIONS.

Article 5

IN ADDITION, THE VIETNAM NATIONAL BANK MAY PERFORM ALL ACTIVITIES OF A BANK.

Article 6

THE VIETNAM NATIONAL BANK SHALL INCLUDE:

1- A MANAGEMENT AND ADMINISTRATIVE BODY CALLED THE BOARD OF DIRECTORS;

2- A SUPERVISORY BODY CALLED THE AUDIT BOARD.

, Clause 1, Clause 2 Article 7a of this Regulation.

THE BOARD OF DIRECTORS SHALL INCLUDE:

1- A CHIEF DIRECTOR;

2- TWO ASSISTANT DIRECTORS;

3- AND SECTOR DIRECTORS (FOUR TO SIX PERSONS).

Article 8

THE TASKS OF THE BOARD OF DIRECTORS ARE:

1- TO RECOMMEND TO THE GOVERNMENT, THROUGH THE MINISTRY OF FINANCE, THE POLICIES AND PROGRAMS OF THE BANK;

2- TO IMPLEMENT PLANS APPROVED BY THE GOVERNMENT;

3- TO DIRECTLY MANAGE THE OPERATIONS OF THE NATIONAL BANK.

Article 9

THE CHIEF DIRECTOR MANAGES THE ADMINISTRATION AND IS RESPONSIBLE FOR IMPLEMENTING THE DECISIONS OF THE BOARD OF DIRECTORS.

THE CHIEF DIRECTOR HAS TWO ASSISTANT CHIEF DIRECTORS.

Article 10

THE AUDIT BOARD SHALL INCLUDE:

1- A CHIEF AUDITOR;

2- AND TWO TO FOUR AUDITORS.

Article 11

THE AUDIT BOARD SHALL HAVE THE TASK OF OVERSEEING ACCOUNTING, FUNDS, AND ALL ADMINISTRATIVE WORK OF THE NATIONAL BANK.

Article 12

THE PERSONNEL MENTIONED IN ARTICLE 7 AND ARTICLE 10 SHALL BE APPOINTED BY A DECREES UPON THE PROPOSAL OF THE MINISTER OF FINANCE.

NO INDIVIDUAL CAN SIMULTANEOUSLY PARTICIPATE IN BOTH THE BOARD OF DIRECTORS AND THE AUDIT BOARD.

THE REGIME OF THESE OFFICIALS SHALL BE DETERMINED BY A DECREES SUBSEQUENTLY.

THE REGIME OF OTHER PERSONNEL ASSISTING IN THE NATIONAL BANK SHALL BE DETERMINED BY A DECREE OF THE MINISTER OF FINANCE UPON THE PROPOSAL OF THE CHIEF DIRECTOR OF THE NATIONAL BANK.

Article 13

A DECREE OF THE MINISTRY OF FINANCE SHALL PROVIDE DETAILS ON THE ORGANIZATION OF THE NATIONAL BANK.

Article 14

THE MINISTER OF FINANCE SHALL ENFORCE THIS DECREES.