A new Government regulation will require all commercial banks to formulate and apply policies and procedures for 11 key operational areas, including credit and risk management.

Banks will also be required to announce deposit and lending interest rate information, and applicable transaction fees and exchange rates at all transaction points.

Decree No 59/2009/ND-CP, including provisions on both the operations and organisational structure of commercial banks, will take effect on September 15 and replace Decree No 49/2000/ND-CP.

The decree includes provisions on establishment and organisational structure of commercial banks, and addresses such areas as charter capital, reporting regimes, confidentiality, independent audit and regulatory responsibilities of the State Bank of Vietnam , as well as a chapter on special control, bankruptcy, dissolution and liquidation.

For private commercial banks, the decree provides that preferential shares can account for no more than 20 percent of the bank’s charter capital.

The decree also includes provision on charter capital of State-owned banks and on rights of members of joint venture banks, including the rights to request the bank to provide information and annual financial reports.

The decree stipulates that the State Bank of Vietnam is the sole authority to deal with the operation of institutions that fail to meet the requirements stipulated in the regulation./.