VN banking system , macroeconomic

1. Lecturer : Ms. Huong
Tutor : Ms. Quyen
Presenters: Nguyen Thi Loan
Nguyen Huong Loan
Nguyen Dieu Huyen
Nguyen Hoang Thuy

2. Introduction
Banking System
State Bank of Vietnam
Commercial bank
Relationships between 2
banks
Conclusion
• Overview
• Achievement
• Overview
• Functions
• Achievement
• Overview
• Fuctions
• Achievement

3.  6th May, 1951, Vietnam’s National Bank was
established.
 21st Jan, 1960, renamed State Bank of
Vietnam.
 July, 1976, national bank south bank was
incorporated in the State of Vietnam
(Source: http://www.sbv.gov.vn/)

4. Banking
system
SBV
Credit
institutions
Commercial
banks
Credit fund
Financial
companies
 5 State-owned Commercial Banks (SOCBs)
 Foreign banks ( HSBC, ANZ)
 34 joint-stock commercial banks
 4 joint-venture banks
 35 branch offices of foreign banks and representative offices
 6 Financial companies
 10 Finance-leasing Companies

5.  Vietnam banking sector in 2007
(Source: Deutsche bank, Vietnam banks
Primer April 2007, Press reports)

6. 2007, after joining WTO, Vietnam
allowed the 100% foreign investment
bank.
2009, SBV helped to stabilize the
economy from downturn.
2010, help economy recover from
inflation

7. The SBV consists:
SBV headquarter ( based in Hanoi)
SBV brach offices in provinces and
cities
Representative office overseas

8. Issuing currency
Acting as banker to the Government
Conduct monetary policies by controlling
money supply
 Tight monetary policies:
Interest rate Inflation (2008-2010)
 Easy monetary policies
Interest rate Deflation( 1999-2001)
Acting as lender of last resort to the
Commercial bank

9.  Control money supply
 Open-market operations(OMO)
• T-bond, Goverment bond, ...
 Changing the reserve requirement
 Banks and financial company: 3-5%
 Agriculture and rural development commercial banks: 1-3%
 Changing Discount rate
Combining with short-term loan refinancing tool for commercial banks.
SBV : Discount rate: 7 % (31 December 2010)
Refinancing rate: 13%( March 2011)
(Source: http://www.sbv.gov.vn )

10. SBV bank of Commercial banks(CB)
Provides capital to CB
Defines reserve ratio for CB

11.  Law on banking 1997:
“A commercial bank is a form of credit institution
entitled to carry out all banking activities and other
related activities.”

12. CREDIT INTERMEDIATION
 Accepting deposit
 Interest rate: 12-14% per year
 Reserve requirement ratio: 1-4%
 Lending money:
 Individual, business: 14-18% per year
 Inter-bank interest rate:
- overnight: 13%
- longer term: 13- 13.5%
( Source:
THÔNG TIN VỀ HOẠT ĐỘNG NGÂN HÀNG TRONG TUẦN (Từ 19/2/2011-
25/2/2011; http://www.sbv.gov.vn
http://sbv.gov.vn/wps/SBVDataStore/upload/VBQPPL/NHNN/2011/THONGTU/2
011_03_3_74930_554.pdf )

13. PAYMENT INTERMEDIATION
 Creating the circulation tools: Cheque, credit card, draft, telegraphic
transfer, ATM...
 Save the circulated fees, increase speed of payment and commodity
circulation.

14. Poor performance for Vietnamese
banks
Poor risk management
Financial and economic risk
(Source: http://vneconomy.vn/66962P0C6/nhung-diem-
yeu-cua-he-thong-ngan-hang.htm)

15. Completing legal framework for
banking
Building a safe and efficient banking
system in Vietnam

16. 1. N.Greory Mankiw, Principles of Economics, 5th edition, 2008
2. LÊ VINH DANH, Chính sách tiền tệ và sự điều tiết vĩ mô của ngân
hàng trung ương, NXB Chính Trị Quốc Gia, (1996) [32- 66]
3. GS.TS LÊ VĂN TƯ, Ngân hàng thương mại , Nxb Tài Chính, [2004])
4. GS.TS. LÊ VĂN TƯ, Tiền tệ, ngân hàng, thị trường tài chính,NXB
TK, 2001
5. http://vneconomy.vn/66962P0C6/nhung-diem-yeu-cua-he-thong-
ngan-hang.htm
6. http://www.sbv.gov.vn
7. Chính sách tiền tệ: Vẫn ưu tiên cho kiềm chế lạm
phát, http://vietnamnet.vn/kinhte/2008/09/801587/
8.Bàn về chính sách thắt chặt tiền tệ: http://www.tapchiketoan.com/ngan-hang-
tai-chinh/tai-chinh-cong/ban-ve-chinh-sach-that-chat-ti.html