Decree No. 16/2017/ND-CP dated February 17, 2017 of the Government defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam

THE GOVERNMENT

Decree No. 16/2017/ND-CP dated February 17, 2017 of the Government defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam

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

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

Pursuant to the Government’s Decree No. 123/2016/ND-CP dated September 01, 2016 of the Governmentdefining the functions, tasks, powers and organizational structures of ministries and ministerial-level agencies;

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

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

Article 1.Position and functions

The State Bank of Vietnam (below referred to as the State Bank) is a ministerial-level agency of the Government, the Central Bank of the Socialist Republic of Vietnam; performs the state management of monetary, banking and foreign exchange activities; functions as the Central Bank for money issuance and as a bank of credit institutions and provides monetary services for the Government; and performs the state management of public services under its management.

Article 2. Tasks and powers

The State Bank has the tasks and powers defined in the Law on the State Bank of Vietnam and the Government’s Decree No. 123/2016/ND-CP dated September 01, 2016 of the Government defining the functions, tasks, powers and organizational structures of ministries and ministerial-level agencies, and the following specific tasks and powers:

1. To submit to the Government drafts of laws and resolutions of the National  Assembly, drafts of ordinances and resolutions of the National Assembly Standing Committee, draft decrees of the Government under the State Bank’s approved annual law-making programs and plans, and projects and schemes as assigned by the Government or the Prime Minister; annual and long-term development strategies, master plans and plans; national target programs, action programs and national important projects and works in the fields under the State Bank’s management.

2. To submit to the Prime Minister drafts of decisions, directives and other documents in the fields under its management or as assigned.

3. To promulgate circulars, directives and other documents in the fields under its management. To direct, guide, examine and organize the implementation of legal documents and the promulgated or approved development programs, projects and plans in the fields under its management.

4. To elaborate annual inflation norms for submission to the Government; to use instruments for the implementation of national monetary policies, including refinancing, interest rate, foreign exchange rate, compulsory reserves, and open market operations, and other instruments and measures to implement national monetary policies.

5.To make statistics of and collect domestic and foreign economic, monetary and banking information under the scope of the State Bank to serve the research, analysis and forecast of monetary developments for formulating and administering national monetary policies; to publicize monetary and banking information in accordance with law.

6. To grant, modify, supplement and revoke establishment and operation licenses of credit institutions, establishment licenses of foreign bank branches and establishment licenses of representative offices of foreign credit institutions and other foreign banking organizations; to grant and revoke payment intermediary service provision licenses for non-bank organizations; to grant and revoke credit information service provision licenses for organizations; to approve the purchase, sale, separation, split-up, consolidation, merger and dissolution of credit institutions in accordance with law.

7. To decide on the application of special handling measures to credit institutions that strictly violate monetary and banking regulations, face financial difficulties and are likely to make the banking system unsafe, including the purchase of shares of credit institutions; to terminate, suspend or relieve from duty the posts of managerial and executive officers of credit institutions; to decide on the merger, consolidation or dissolution of credit institutions; to place credit institutions under special control; to perform its tasks and exercise its powers toward credit institutions in accordance with the bankruptcy law.

8.To approve the tentative list of people that are selected and appointed as the member of the Management Board, the Member Board, member of the Control Board, General Director (Director) of credit institutions; To approve other changes as stipulated by the law on credit institutions.

9. To implement on state management on anti-money laundering as stipulated by the law.

10. To examine, inspect and supervise banks; to examine and inspect foreign exchange and gold trading activities, anti-money laundering activities; to control credit; to handle violations in monetary, banking and foreign exchange activities and anti-money laundering in accordance with law.

11. To perform the state management of deposit insurance in accordance with the law on deposit insurance.

12. To make, monitor, forecast, and analyze the implementation results of, international payment balance; to report on the implementation of Vietnam’s international payment balance in accordance with law; to act as the focal point in providing Vietnam’s international payment balance data for domestic and foreign organizations in accordance with law.

13. To organize, manage, operate and supervise the national payment system to ensure its safety and efficiency and provide payment services for banks; to supervise payment intermediary service provision activities; to organize and supervise operation of payment instruments in the economy; to manage payment instruments in the economy.

14. To perform the state management of foreign exchange and foreign exchange and gold trading activities:

a) To manage foreign exchange and foreign exchange activities in current transactions, capital transactions and foreign exchange use in the Vietnamese territory; foreign exchange service trading and provision activities and other foreign exchange-related transactions; and foreign exchange activities in border areas in accordance with law;

b) To manage state foreign exchange reserves in accordance with law; to purchase and sell foreign exchange in the domestic market for the objectives of national monetary policies; to purchase and sell foreign exchange with the state budget, international organizations and other sources; to purchase and sell foreign exchange in the international market and conduct other foreign exchange transactions in accordance with law;

c) To publicize foreign exchange rates; to decide on the foreign exchange rate regime and foreign exchange rate-regulating mechanism;

d) To grant and revoke the written approvals of the trading and provision of foreign exchange services for credit institutions, foreign bank branches and other organizations in accordance with law;

dd) To manage foreign exchange with regard to foreign investment in Vietnam and Vietnam’s offshore investment in accordance with law;

e) To manage gold trading activities in accordance with law.

15. To manage residents entitled to borrow foreign loans and pay foreign debts by themselves in such borrowing and payment in accordance with law; to guide the process of registration, modification registration, revocation or abrogation of the written certifications of registration or modification registration of government-guaranteed foreign loans.

16. To manage credit institutions and economic organizations in the provision of foreign loans, recovery of foreign debts and provision of guarantee for nonresidents in accordance with law.

17. To represent the Socialist Republic of Vietnam and the Vietnamese Government at the International Monetary Fund (IMF), the World Bank (WB), the Asian Development Bank (ADB), the International Investment Bank (IIB), the International Bank for Economic Cooperation (IBEC), Asian Infrastructure Investment Bank (AIIB) and other international monetary institutions and international banks.

To exercise the rights and perform the obligations of Vietnam in the capacity as the country’s representative at international monetary organizations and international banks; to propose to Government or the Prime Minister policies and measures to develop and expand cooperation with these organizations and banks.

18. To assume the prime responsibility for, and coordinate with related agencies in, preparing the contents of, and negotiating and concluding treaties with international financial-monetary organizations at which the State Bank is the representative, and to act as the official representative of borrowers under treaties as assigned or authorized by the President or the Government.

19. To carry out international cooperation in monetary, banking and foreign exchange activities in accordance with law; to join, and perform Vietnam’s obligations in the capacity as a member of, international anti-money laundering organizations.

20. To stabilize the monetary-financial system:

a) To summarize, analyze and forecast the monetary-financial situation; to propose measures to prevent systematic risks in the monetary-financial sector;

b) To formulate policies and measures to respond to crisis, ensuring the stability of the monetary, banking and financial system.

21. To conduct the operations of the Central Bank:

a) To organize the designing, printing, minting, preservation and transportation of banknotes and coins; to conduct the operations of issuance, withdrawal, substitution and destruction of banknotes and coins;

b) To grant refinancing for providing short-term capital and payment instruments for credit institutions;

c) To organize, administer and develop the monetary market; to manage and operate the domestic currency market and inter-bank foreign currency market.

22. To organize the credit information system and provide credit information services; to perform the state management of credit information organizations; to conduct credit analysis and ranking for legal entities and natural persons in the Vietnamese territory.

23. To act as the agent and provide banking services for the State Treasury.

24. To consult the Ministry of Finance on the issuance of government bonds and government-guaranteed bonds.

25. To decide on the approval and organize the implementation of investment projects falling within its competence; to appraise and examine the implementation of investment projects in the banking sector in accordance with law.

26. To organize and direct scientific research, application of scientific and technological advances and environmental protection in the banking sector in accordance with law.

27. To organize training and retraining in monetary and banking operations in accordance with law.

28. To decide on policies and specific measures and direct the implementation of operation mechanisms of public service units in monetary, banking and foreign exchange activities; to manage non-business units under its management in accordance with law.

29. To represent the owner of state capital amounts at credit institutions, financial organizations, state capital-funded enterprises according to the law.

To use the legal capital as contributions for the establishment of specific enterprises in order to perform its functions and tasks under the Prime Minister’s decisions;

30. To perform the tasks and exercise the powers toward associations and nongovernmental organizations under its management in accordance with law.

31. To inspect, examine, and settle complaints and denunciations; to prevent and combat corruption, negative practices, bureaucracy and authoritarianism; to practice thrift and combat waste in accordance with law.

32. To decide on and direct the implementation of its administrative reform program according to the objectives and contents of the Government’s administrative reform program and as directed by the Prime Minister; to decide on and direct the change of the working style, modernization of working offices and application of information technology to its operation.

33.To manage and organize the implementation of communication activities in Banking sector related to state management function of the State Bank;

34. To manage its organizational apparatus, payroll of civil servants, job positions and structure of public employees based on their professional titles and the number of employees in public non-business units; to decide on the shift, transfer, appointment, relief from duty, dismissal, retirement, job cessation, commendation and discipline of employees; and regimes and policies on training and retraining of cadres, civil servants and public employees under its management in accordance with law.

35. To submit to the Prime Minister a mechanism on recruitment and preferential treatment of cadres and public employees as suitable to its specific operations.

36. To manage the allocated finance and assets in accordance with law.

37. To perform other tasks and exercise other powers as assigned by the Government or the Prime Minister in accordance with law.

Article 3. Organizational structure

1. The Monetary Policy Department.

2. The Foreign Exchange Management Department.

3. The Settlement Systems Department.

4. The Credit Department for Economic Sectors.

5. The Statistics and Forecast Department.

6. The International Cooperation Department.

7. The Monetary-Financial Stability Department.

8. The Internal Audit Department.

9. The Legal Department.

10. The Finance and Accounting Department.

11. The Organization and Personnel Department.

12. The Emulation and Reward Department.

13. The Communication Department

14. The Office

15. The Informatics Technology Department.

16. The Issuance and Vault Department.

17. The Administration Department.

18. The Transaction Bureau.

19. The Banking Supervisory Agency.

20. Branches in provinces and centrally run cities.

21. The Banking Strategy Institute.

22. The Vietnam National Credit Information Center.

23. The Banking Times.

24. The Banking Magazine

25.The Banking Training School.

26. The Banking Academy.

The units specified in Clauses 1 through 20 are those assisting the State Bank Governor in performing the state management function and the function as the Central Bank; and the units specified in Clauses 21 through 27 are non-business units serving the state management function of the State Bank.

There are 7 divisions in the Monetary Policy Department, International Cooperation Department; there are 6 divisions in the Foreign Exchange Management Department, Finance and Accounting Department, Statistics and Forecast Department, Credit Department for Economic Sectors; there are 5 divisions in the Internal Audit Department and Organization and Personnel Department; there are 4 divisions in the Settlement Systems Department and Legal Department; there are 3 divisions in the Monetary-Financial Stability Department.

The Office has 5 divisions; the Issuance and Vault Department has 9 divisions and a sub-division in Ho Chi Minh City and Administration Department has 7 divisions a sub-division in Ho Chi Minh City; Informatics Technology Department has 7 divisions and sub-division in Ho Chi Minh City; the Transaction Bureau has 9 divisions.

Branches in provinces and centrally run cities: there are 7 divisions in the branch in Hanoi; 8 divisions in the branch in Ho Chi Minh City; 5 divisions in Haiphong, Da Nang, Can Tho, Nghe An, DakLak; 4 divisions in 56 remaining provinces.

The State Bank Governor shall submit the Prime Minister to promulgate decision on defining the functions, tasks, powers and organizational structure of the Banking Inspection and Supervision Department; submit to the Prime Minister to promulgate the list of other public administrative units under the management of the Vietnam State Bank.

The State Bank Governor shall promulgate the Decision on defining the functions, tasks, powers and organizational structure of units under the management of the State Bank as stipulated by the law, excluding the Banking Inspection and Supervision Department.

Article 4. Effect

1. This Decree takes effect on its signing date.

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

Article 5. Transitional provisions

The Banking Supervisory Agency shall continue complying with the current regulations until the Prime Minister promulgates a decision defining its functions, tasks, powers and organizational structure.

Article 6. Implementation responsibility

The State Bank Governor, ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of People’s Committees of provinces and centrally run cities shall implement this Decree.-

For the Government

Prime Minister

Nguyen Xuan Phuc