Center for Community Support Development Studies

The main difference between the State Bank of Vietnam and commercial banks in the banking system of Vietnam?

The State Bank of Vietnam is the central bank in Vietnam. The State Bank is the State management agency that licenses commercial banks and other credit institutions operating under the Law on Credit Institutions and relevant laws. The State Bank performs the function of state management of monetary, banking and foreign exchange activities. The State Bank issues money, acts as a bank of credit institutions and is a bank providing monetary services to the Government.
Commercial banks operate under the control and control of the State Bank of Vietnam. Commercial banks play an important role for the intermediary bank with the primary functions of credit intermediation, payment intermediation and monetization.