The National Assembly has ratified the amended laws on the State Bankand credit organisations.
Nearly 85 percent of NAdeputies agreed with the amended Law on the State Bank, meaning that thelaw will come into effect from January 1, 2011.
According to the law, the State Bank of Vietnam is a ministry-levelbody and confirmed as the central bank of the country.
In relation to interest rates, the draft law on State banking statedthat the State Bank would announce interest rates and manage monetarypolicies. In case of unusual developments on the monetary markets, theState Bank will decide the management mechanism on interest rates amongcredit organisations and among credit organisations with clients.
The NA Standing Committee said that allowing creditorganisations to apply a negotiated interest rate mechanism did not meanletting interest rates float freely in the market.
Ha Van Hien, chairman of the NA's Economics Commission, said that theState Bank would be in charge of adjusting the amount of money supply inthe economy, through which it could decide the interest rate tostabilise the value of the currency.
Thereforecredit organisation interest rates fall under the control of the StateBank.
The State Bank is also the governmental bodythat will announce the interest rate used as the foundation for settlingconflicts and fighting loan sharking.
The PrimeMinister and the Governor of the State Bank will decide the use of toolsand management measures to carry out national monetary goals.
The law also allows the State Bank to contribute capital tothe establishment of non-profit enterprises, such as a national mint.The State Bank is not allowed to contribute capital to enterprisesoperating in fields beyond their key competencies.
In terms of the State foreign currency reserve fund, some deputies saidthat the fund should be put under the management of the NA.
Hien explained that the fund was mainly used for intervening inthe foreign currency market to stabilise the value of the domesticcurrency. This is carried out through selling foreign currency to creditorganisations and to the State budget to pay foreign loans.
Therefore it would be rational that the State Bank is in chargeof managing the fund, he said.
In the afternoonsession, the NA also ratified the amended Law on Credit Organisations.
According to the new law, credit organisations areallowed to set and announce interest rates for attracting capital. Theycan also negotiate with clients on interest rates and credit issuancefees.
Negotiations in interest rates for theseorganisations must be within the limit allowed by the law.
The law states that an individual can only possess shares of nomore than 5 percent of the charter capital of a credit organisation,while institutional shareholders can possess shares of no more than 15percent, except in exceptional cases.
The law willcome into effect on January 1, 2011./.
Nearly 85 percent of NAdeputies agreed with the amended Law on the State Bank, meaning that thelaw will come into effect from January 1, 2011.
According to the law, the State Bank of Vietnam is a ministry-levelbody and confirmed as the central bank of the country.
In relation to interest rates, the draft law on State banking statedthat the State Bank would announce interest rates and manage monetarypolicies. In case of unusual developments on the monetary markets, theState Bank will decide the management mechanism on interest rates amongcredit organisations and among credit organisations with clients.
The NA Standing Committee said that allowing creditorganisations to apply a negotiated interest rate mechanism did not meanletting interest rates float freely in the market.
Ha Van Hien, chairman of the NA's Economics Commission, said that theState Bank would be in charge of adjusting the amount of money supply inthe economy, through which it could decide the interest rate tostabilise the value of the currency.
Thereforecredit organisation interest rates fall under the control of the StateBank.
The State Bank is also the governmental bodythat will announce the interest rate used as the foundation for settlingconflicts and fighting loan sharking.
The PrimeMinister and the Governor of the State Bank will decide the use of toolsand management measures to carry out national monetary goals.
The law also allows the State Bank to contribute capital tothe establishment of non-profit enterprises, such as a national mint.The State Bank is not allowed to contribute capital to enterprisesoperating in fields beyond their key competencies.
In terms of the State foreign currency reserve fund, some deputies saidthat the fund should be put under the management of the NA.
Hien explained that the fund was mainly used for intervening inthe foreign currency market to stabilise the value of the domesticcurrency. This is carried out through selling foreign currency to creditorganisations and to the State budget to pay foreign loans.
Therefore it would be rational that the State Bank is in chargeof managing the fund, he said.
In the afternoonsession, the NA also ratified the amended Law on Credit Organisations.
According to the new law, credit organisations areallowed to set and announce interest rates for attracting capital. Theycan also negotiate with clients on interest rates and credit issuancefees.
Negotiations in interest rates for theseorganisations must be within the limit allowed by the law.
The law states that an individual can only possess shares of nomore than 5 percent of the charter capital of a credit organisation,while institutional shareholders can possess shares of no more than 15percent, except in exceptional cases.
The law willcome into effect on January 1, 2011./.
