OVERVIEW OF

BANKING SYSTEM

KARMA TEAM
OUTLINE
 1.What is Bank ?
 2.History of Banking System in Vietnam
 3.The present Bank System in Vietnam
 4.Function of Banking in economic and

services
1. What is Bank ?
 A bank is a financial institution licensed to receive
deposits and make loans.
 There are several types of banks including retail,
commercial, and investment banks.
 In most countries, banks are regulated by the
national government or central bank.
 In 1976, the State Bank of Vietnam (formerly the
National Bank of Vietnam) became the central
bank of the country.
1. What is Bank ?
 Other important banks operating in Vietnam in
1988 included:
◦  The Bank for Industry and Trade (VietinBank -
now the largest listed bank) which provides
credit to the industry and trade sectors,
◦ The Foreign Trade Bank, which was charged
with overseeing all aspects of foreign payments
◦ The Bank for Agricultural Development, which
provided loans to agriculture and fishing
2.History of Banking System in Vietnam
- The Bank for Industry and Trade
whichfor
- The Bank provides credit
Industry andtoTrade
the industry
which
1 providesand tradetosectors,
credit the industry and trade
9 sectors,- The Foreign Trade Bank, which was
charged with overseeing all aspects
7 - The Foreign
of foreignTrade Bank, which was
payments
charged with overseeing all aspects of
6 -The Bank for Agricultural
foreign Development,
payments which provided loans
-The Bank for Agricultural Development,
1976
to agriculture and fishing
which provided loans to agriculture and
fishing

The State Bank of

The State Bank of Vietnam 1
Vietnam (formerly the
(formerly the Bank
National
of Vietnam)
Vietnam)
National
became
of Bank
becamethe the
1988 8
8
central
central bankbank of the
of the country
country
3.The present Bank System in Vietnam
 State bank of vietnam (SBV) 
- It is a ministerial-level agency of the Government and the
central bank of Socialist republic of Vietnam
- 5/1951 National Bank of Vietnam (focus on currency
issuance and work as a tool of state budget)
-10/1961, SBV (works under one-tier operation mechanism:
monetary management and currency trading)
- 5/1990, SBV (works under two tier operation mechanism:
SBV implements the state management, commercial banks
conduct currency trading
- 2010-now, operates under the laws on the state bank of
Vietnam
3.The present Bank System in Vietnam
 Vietnamese commercial bank system
Commercial bank system in Vietnam consists:
- 5 State-owned Commercial Banks (SOCBs) 
- 36 joint-stock commercial banks
- 4 joint-venture banks
- 28 branch offices of foreign banks 
Besides, there are 1 Social Policy Bank and several
financial companies, finance-leasing companies and
people’s credit funds
 5 SOCBs take up 3/4 of the total deposits and lending;
the rest belongs to joint-stock commercial banks,
branches of foreign banks and other credit institutions.
 4. Function of Banking
in economic and services

 Regulating the issuance of banknotes

 Maintaining currency reserves
 Securing monetary stability
 Managing the currency and credit system in

Vietnam
 Managing the circulation of banknotes and

coins
 4. Function of Banking
in economic and services

 Formulating, implementing, and monitoring

the monetary policy; prescribing broad
parameters for banking operations
 Managing foreign exchange
 Acting as the banker’s bank