Source: WE BANK

Ternary Structure of Separate Supervision

Since joining the World Trade Organization (WTO) in 2007, Vietnam's capital market began to develop rapidly. With the development of the concepts of marketization of local market economy and financial liberalization, more and more overseas investment flows into Vietnam, and the importance of its financial supervision is obvious.

Through continuous improvement, Vietnam has gradually formed a separate supervision system, the main body includes the State Bank of Vietnam (SBV), the Ministry of Finance and the State Securities Commission. SBV is a government agency-a government agency that performs the administrative functions of the National Central Bank on monetary and banking operations. In addition, SBV also has the functions of promulgating monetary and banking regulations, issuing business licenses of credit institutions, and supervising the business activities of credit institutions. As a government department, Vietnam's Ministry of Finance performs the state's regulatory functions on the insurance industry, such as administration, promulgation of laws and regulations, issuance of business licenses, etc. It also participates in the planning of Vietnam's financial system and the formulation of policies. Vietnam's National Securities Commission is also a government agency, which performs the state's administrative management of the securities market, including issuing listing licenses for securities companies, supervising securities transactions and services, supervising the business activities of securities companies, and handling illegal operations.

In 2018, To encourage financial technology innovation, And strengthen cooperation in banking supervision, Monetary Authority of Singapore MAS and National Bank of Vietnam SBV agreed to establish a new partnership, In order to promote joint innovation projects between the two countries, help financial technology companies in one jurisdiction to better understand the regulatory system and potential opportunities of another country, strengthen cooperation in crisis management, and encourage the sharing of relevant information on the development trend of emerging financial technology.

In order to ensure the sustainable, healthy and effective development of the financial market, the National Bank of Vietnam has introduced some credit crunch measures by setting credit growth limits for commercial banks and controlling loans to high-risk sectors (real estate, securities and consumer markets). Since 2019, the Central Bank of Vietnam has continuously adjusted its financial policies to adapt to changes in macro-economy and inflation. It is expected that after 2020, the Central Bank of Vietnam will continue to adjust its regulatory regulations and revise policies such as the issuing institutions and applicants' qualifications of consumer loans and cash loans.