Vietnam

Central Bank
Roles and functions
Introduction
The State Bank of Vietnam is the
central bank of Vietnam under the
Government of Vietnam which is
responsible for the monetary issue,
currency management and advising
monetary policies for the Vietnamese
Government.
State bank of vietnam
Headquarters: Hanoi, Vietnam
Established: 6 May 1951
Governor: Lê Minh Hưng
Currency: Vietnamese đồng ( VNĐ )
Website: www.sbv.gov.vn
 Index
A brief introduction about roles and fuctions of Vietnam State Bank
 Roles and fuctions
1. Promote monetary stability and
formulate monetary policies.
2. Promote institutions’ stability and
supervise financial institutions.
3. Recommend economic policies to the
government.
4. Provide banking facilities for the
financial institutions.
5. Manage the country’s international
reserves.
6. Print and issue banknotes.
7. Supervise all commercial banks’
activities in Vietnam.
8. Be in charge of other roles in
monetary management and foreign
exchange rates
 1.
Promote monetary stability and
formulate monetary policies.
 1
The State Bank of Vietnam
(SBV) will control credit growth
and direct capital to areas of
priority towards safety and
effectiveness
2. The SBV will
continue to flexibly 3. The SBV will
implement monetary consistently use
and fiscal policy and monetary policy
cooperate with the
Ministry of Finance
 4
The SBV has also directed
commercial banks to continue to
simplify administrative
procedures, reduce costs, and
increase effectiveness of credit
capital; and coordinated with
localities
 5
Regarding the forex market, the
SBV will continue to keep
foreign exchange reserves at a
high level and flexibly adjust the
exchange rate in line with the
market movements; stand ready
to respond to rapid and sudden
situations, keep a close watch
on the forex market, and strive
for fulfilment of macro-economic
norms.
 2.
Promote institution's stability and
supervise financial institutions
 1
The Strategy for development of
the banking sector up to 2030
has been recently approved by
the Prime Minister, setting forth
major objectives for operations
of the credit institution system
as well as state management
responsibilities of the State Bank
 2
The system of credit institutions
will operate in a transparent,
competitive, safe and
sustainably effective manner; be
diversified in ownership, scope
and type; and apply advanced
banking technologies and
governance standards in line
with international practices.
3. Three fundamental 4. The strategy sets
functions of the central forth seven specific
bank’s state objectives
management work have
been clearly spelled out
3. Three fundamental 4. The strategy sets
functions of the central forth seven specific
bank’s state objectives
management work have
been clearly spelled out
 3.
Recommend economic policies to
the government.
 1
The economic policy of
governments covers the systems
for setting levels of taxation,
government budgets, the money
supply and interest rates as well
as the labor market, national
ownership, and many other
areas of government
interventions into the economy.
 2
There may be pressure on the
government to reduce inflation,
reduce unemployment, and
reduce interest rates while
maintaining currency stability for
the bank to achieve its goals in
the short term
 4.
Provide banking facilities for the
financial institutions.
 1
A financial institution is an
establishment that conducts
financial transactions such as
investments, loans and deposits.
 2
Financial institutions use the
funds they raise through
customers deposits (liabilities)
to provide loans (assets) to
these or other customers
 3
The granting of a loan is
necessary as the repayment of
the loan becomes uncertain
 5.
Manage the country’s
international reserves.
 1
The SBV performs the following
functions and tasks for the state
international reserve
management
 6.
Print and issue banknotes.
 1
SBV is the sole issuer of
currency of the Socialist
Republic of Vietnam. Its
monetary unit is dong,
abbreviated as VND.
 2
Vietnam’s current monetary
system consists of 2 types:
banknotes and coins.
 7.
Supervise all commercial banks’
activities in Vietnam.
 1
Banking inspection and
supervision have specific aim in
contributing to the country’s
economy
 2
There are different ways for the
State Bank to supervise all
commercial banks’ activities in
Vietnam.
 8.
Be in charge of other roles in
monetary management and
foreign exchange rates
 1
The State Bank of Vietnam
(SBV) launches the daily
average inter-bank exchange
rate between the Vietnam dong
and the U.S. dollar and
reference exchange rates
between the dong and some
other foreign currencies.
 2
The SBV said the information of
the daily average inter-bank
exchange rate is to keep the
forex market stable and support
macro-economic stability and
operations of businesses
 3
The central bank would carry
out comprehensive monetary
measures and was willing to sell
foreign currencies, if necessary,
for proper exchange rate
developments and a stable
foreign exchange market, it
said.