The State President on Wednesday promulgated three new laws, including the Law on the State Bank of Vietnam and the Law on Credit Organizations.
These new laws were all passed by the National Assembly at its latest working session on May 20-June 19 this year.
SBV’s role expanded
The Law on the State Bank of Vietnam (SBV), which consists of seven chapters, with 66 articles, clearly specifies the responsibility of the SBV to explain its performance to the NA, the Government and the public.
The SBV is allowed to take necessary actions against credit organizations which intentionally violate monetary regulations or even put them under special control.
The Law partly aims at expanding the role of the SBV in mitigating risks against credit organizations and the whole banking-finance system.
Especially, the prime rate is now not only the benchmark for credit organizations to fix their interest rates but also functions as a tool to prevent usury.
Business scope stipulated more clearly
The Law on Credit Organizations (revised), which has 10 chapters and 163 articles, provides detailed regulations on this kind of banking players.
Regarding to business licensing, the regulations focus on the safety of each credit organization and the whole banking-finance system. The regulations are also more compatible to Vietnam’s commitments to the World Trade Organization.
One of the basic changes was that the SBV will no longer approve changes relating to managerial staff in these organizations in order to reduce administrative procedures.
Source: VGP