Decree No. 96/2008/ND-CP on 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

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THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

BASED ON THE Law on the State Bank of Vietnam dated December 12, 1997, and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam dated June 17, 2003;

BASED ON Decree No. 178/2007/NĐ-CP dated December 3, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

CONSIDERING the proposal of the Governor of the State Bank of Vietnam,

DECREE:

Article 1. Position and Functions

The State Bank of Vietnam (hereinafter referred to as the State Bank) is a ministerial-level agency under the Government, performing the function of state management over currency, banking activities, and the Central Bank function of the Socialist Republic of Vietnam; managing state services within the scope of management of the State Bank.

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 Decree No. 178/2007/NĐ-CP dated December 3, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies, and the following specific tasks and powers:

1. Submitting draft laws, draft resolutions of the National Assembly, draft ordinances, and 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 that has been approved, and projects and programs assigned by the Government and the Prime Minister.

2. Submitting strategies, plans, and programs for long-term development, five-year plans, and annual plans; national target programs, action programs, and important projects and works in the field of banking; draft decisions, directives, and other documents within the authority of the Prime Minister's direction and management as provided by law.

3. Issuing circulars, decisions, and directives within the scope of management of the State Bank.

4. Directing, guiding, inspecting, and organizing the implementation of legal documents, strategies, plans, programs, projects, and important works within the scope of management of the State Bank that have been approved; disseminating, promoting, and educating about laws within the scope of state management of the State Bank.

5. Drafting national monetary policy projects, submitting them to the Government for submission to the National Assembly; using interest rates, exchange rates, reserve requirements, open market operations, and other tools to implement national monetary policy; submitting proposals for the development of the banking system and credit organizations to the Government.

6. Issuing and revoking licenses for the establishment and operation of credit organizations, except where decided by the Prime Minister; issuing and revoking banking operation licenses for other organizations; deciding on the dissolution, name change, and approval of mergers, acquisitions, and consolidations of credit organizations; guiding the conditions for the establishment and operation of credit organizations as prescribed by law.

7. Inspecting, auditing, supervising banking activities; controlling credit; handling violations of laws in the fields of currency and banking activities as prescribed by law.

8. Regarding foreign exchange management:

a) Managing current transactions, capital transactions, and the use of foreign currencies on Vietnamese territory as prescribed by law;

b) Determining the State's foreign exchange reserves; monitoring international reserves;

c) Determining the exchange rate between Vietnamese dong and foreign currencies; organizing and developing the foreign exchange market; establishing exchange rate mechanisms to be submitted to the Prime Minister for decision.

9. Regarding the construction of the balance of payments:

a) Collecting, compiling, preparing, forecasting, and monitoring the implementation of Vietnam's balance of payments; reporting on the implementation of Vietnam's balance of payments as prescribed by law.

b) Serving as the main provider of data on Vietnam's balance of payments to domestic and foreign organizations as prescribed by law.

10. Regarding the management of borrowing and repayment of foreign debts by resident economic entities, credit organizations, and individuals as prescribed by law:

a) Implementing state management over borrowing and repayment of foreign debts by enterprises and other public sector organizations; supervising and monitoring borrowing and repayment of foreign debts by the private sector; guiding and inspecting the guarantee of foreign loans by commercial banks and other organizations permitted to provide such guarantees as prescribed by law;

b) Taking the lead and coordinating with relevant agencies to establish annual limits for foreign trade borrowing by enterprises and other public sector organizations, and forecasting the level of foreign borrowing by the private sector nationwide to be submitted to the Ministry of Finance for consolidation and presentation to the Prime Minister for approval;

c) Taking the lead and coordinating with the Ministry of Finance to manage annual foreign trade borrowing limits for enterprises and other organizations that have been approved by the Prime Minister;

d) Compiling the situation of borrowing and repayment of foreign debts annually by enterprises and other organizations in both the public and private sectors; reporting to the Prime Minister and sending to the Ministry of Finance for overall consolidation of the country's foreign borrowing and repayment situation;

đ) Guiding and organizing the registration of foreign borrowings by resident economic entities and credit organizations (including those guaranteed by the government);

e) Monitoring financial flows related to foreign borrowing and repayment activities for the compilation of the balance of payments, monetary policy management, and foreign exchange management;

g) Establishing an early warning system for risks from corporate debt;

h) Performing other tasks and powers regarding the management of foreign borrowing and repayment as prescribed by law.

11. Regarding the management of foreign lending and debt recovery by the Government, economic organizations, and credit institutions:

a) Coordinating with the Ministry of Finance to submit to the Prime Minister for decision on the amount, sources, forms, targets, and management mechanisms for foreign lending and debt recovery by the Government;

b) Prescribing conditions, targets, forms, and management mechanisms for foreign lending and debt recovery by resident credit institutions;

c) Prescribing conditions, procedures, and processes for granting permission for resident economic organizations to engage in foreign lending and debt recovery, and submitting to the Prime Minister for decision.

d) Perform other tasks and powers regarding foreign lending and debt recovery in accordance with the provisions of the law.

12. Regarding negotiations, signing, and joining international treaties on currency and banking activities:

a) Coordinate with relevant agencies to prepare content, conduct negotiations, sign, or join international treaties authorized by the Government concerning ODA with the World Bank (WB), Asian Development Bank (ADB), and International Monetary Fund (IMF);

b) Periodically compile and notify the Ministry of Finance, the Ministry of Planning and Investment, and related agencies about the situation of capital withdrawal and payment through the accounts of ODA programs and projects opened at banks.

13. Represent the Socialist Republic of Vietnam at international banks and monetary organizations according to the authorization of the President and the Government:

a) Fulfill member functions at the International Monetary Fund (IMF), World Bank (WB), Asian Development Bank (ADB), International Investment Bank (IIB), and International Bank for Economic Cooperation (IBEC);

b) Serve as the coordinating point with relevant ministries and sectors in implementing the charters and policies of IMF, WB, ADB, IIB, and IBEC, and macroeconomic stability programs implemented in Vietnam by these organizations; provide periodic or ad hoc information and data as required by these organizations; propose policies and measures to the Government and Prime Minister to develop and expand cooperation with these organizations.

14. Regarding the implementation of central bank operations:

a) Organize printing, minting, preserving, and transporting money; perform issuance, recall, replacement, and destruction of money operations;

b) Provide short-term credit and means of payment to the economy through refinancing;

c) Manage the money market; implement open market operations;

d) Organize the inter-bank payment system; state management over payment activities; provide payment services; organize the implementation of policies to encourage, expand, and develop cashless payments after approval by competent authorities;

đ) Act as agent and perform banking services for the State Treasury;

e) Organize the information system and provide banking information services; manage credit information organizations; analyze and rank credit ratings of Vietnamese enterprises;

g) Perform other central bank operations.

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

16. Manage financial assets assigned in accordance with the law; use funds allocated from specialized and operational revenues related to foreign exchange, currency, and banking activities to serve professional and operational work as prescribed by law.

17. Implement international cooperation in the fields of currency and banking activities in accordance with the law.

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

19. Decide on specific policies and measures and direct the operation mechanism of public service organizations in the fields of currency and banking activities; manage and direct activities of affiliated public institutions under its jurisdiction in accordance with the law;

20. Represent the state ownership interest in state-owned enterprises:

a) Develop proposals for establishing, restructuring, reorganizing, and converting ownership of state-owned enterprises under the management of the State Bank, submit to the Prime Minister for approval and direct implementation after the proposal is approved;

b) To approve or submit to the Prime Minister for approval the charter of organization and operation of state-owned enterprises operating in the banking sector within its authority;

c) Submit to the Prime Minister for appointment or appoint within its authority the positions of Board Members, General Directors, Deputy General Directors of state-owned credit organizations and other state-owned enterprises under its management.

21. Guide and inspect the activities of associations and non-governmental organizations in the sectors and areas under the management of the State Bank; handle or recommend to competent state authorities to handle violations of the law by associations and non-governmental organizations in accordance with the law.

22. Conduct inspections, handle complaints and denunciations, and deal with violations of the law in the fields of currency and banking activities within its authority; prevent corruption, bureaucracy, favoritism, and wastefulness in accordance with the law.

23. Decide and direct the implementation of the State Bank's administrative reform program in accordance with the government's administrative reform program goals and content and the Prime Minister's directives; decide and direct changes in working methods, modernization of offices, and the application of information technology to support State Bank activities.

24. Manage civil servant and specialist staff categories in the banking sector;

a) Organize examinations for promotion to specialist ranks; issue professional standards for ranks of specialist staff managed and delegated according to the law;

b) Develop professional standards for civil servant ranks in the banking sector for the Ministry of Home Affairs to promulgate.

25. Manage organizational structure and staffing; recruitment, training, development, employment, appointment, dismissal, transfer, rotation, retirement benefits, rewards, disciplinary actions, salaries, and other policies and benefits for cadres, civil servants, and specialists under its management.

26. Propose to the Prime Minister to issue mechanisms for salaries, recruitment, and employment of cadres, civil servants, and specialists suitable for the characteristics of the State Bank.

27. Perform other tasks and exercise other powers delegated by the Government and Prime Minister and stipulated by 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

5. Department of Monetary Forecasting and Statistics

6. Department of International Cooperation.

7. Department of Internal Audit.

8. Legal Department

9. Financial and Accounting Department

10. Department of Organization and Cadres.

11. Department of Motivation and Awards

12. Office;

13. Information Technology Bureau

14. Issuance and Treasury Agency.

15. Administrative Bureau

16. Trading Department

17. Banking Supervision and Inspection Agency

18. Branches in provinces and centrally governed cities.

19. Representative office in Ho Chi Minh City.

20. Institute of Banking Strategy.

21. Credit Information Center.

22. Banking Times newspaper.

23. Banking Magazine.

24. Bank Cadre Training School.

The organizations from Clause 1 to Clause 19 of this Article assist the Governor of the State Bank of Vietnam in performing state management functions and central bank functions; the organizations from Clause 20 to Clause 24 of this Article are public service organizations under the State Bank of Vietnam.

Organizations within the organizational structure of the State Bank of Vietnam shall be organized into departments; the Issuance and Treasury Department, and the Information Technology Department shall have Sub-departments in Ho Chi Minh City.

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 issue a decision on the list of other public service units under the State Bank of Vietnam.

Article 4. Effective date

1. This Decree takes effect fifteen days after its publication in the Official Gazette and replaces Decree No. 52/2003/NĐ-CP dated May 19, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam.

Article 2. Abolish previous provisions that conflict with this Decree.

Article 5. Responsibility for Implementation

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the Central Government shall be responsible for implementing this Decree.