Vietnam Central Bank May Have More Power to Regulate Monetary Market

The State Bank of Vietnam, the country’s central bank, should have more mandates to regulate and intervene into the monetary market to maintain the safety of the banking system.

 

Under the Laws on the central bank and credit institutions which were enacted in 1998, the SBV Governor has not been fully mandated in designing and regulating the monetary policies, said lawmaker Ha Van Hien, who is chairman of the National Assembly’s Economics Department.

 

The department has agreed to the amendments for the laws which will give the SBV more power to intervene into the monetary market and operations of credit institutions to secure the safety for the banking system.

 

The central bank should be decisive in its organization and financially viable in operations, the department proposed.

 

The governor should be mandated in setting up advisory committees as well as closing the central bank’s branches and offices across Vietnam.

 

“The SBV should have more power to regulate the monetary market actively and timely,” Duong Thu Huong, general secretary of the Vietnam Banks Association recommended.

 

In Vietnam, all the state agencies, including the SBV, must follow the instructions issued by the ruling communist party. (Vietnam Economic Times)