Overview of commercial bank system

Welcome to group 4
COMMERCIAL
BANK
TEACHER: MS NGUYỄN THỊ HAI HẰNG


TEAM MEMBER

Đỗ Thị Thu
Phương

Phan Thị Bảo
Trâm

Đặng Huyền
Linh


Overview Of The
Banking System
In Vietnam


Table Of Contents

I. Introduction about The Bank in
Vietnam
II. The Current Banking System in
Vietnam

I. Introduction
about The Bank
in Vietnam


The banking system in Vietnam
State commercial banks
Commercial
Banks

Banks

Policy Banks

Co-operative
Banks

Joint-stock commercial
bank
100% foreign owned
bank

Joint -venture bank


Bank
A bank is a financial institution
that accepts deposits from the
public and creates a demand
deposit while simultaneously

making loans. Lending activities
can be directly performed by
the bank or indirectly through
capital markets.


Control inflation (Menu
cost vs shoe leather cost)

Banker to the government
and other bank

Stabilize the price

Regulator and supervisor
of payments system

Stabilize exchange rate
with foreign currencies

Lender of last resort

CENTRAL
BANK

Full employment

Holder of gold and foreign
exchange reserves

Sustainable positive
economic growth

Conduct of monetary policy

Moderate long-term
interest rates

Policy rate

Reserve requirements

Open market operations

OBJECTIVES

ROLE

Sole supplier of currency


II. The Current
Banking System
in Vietnam



2.Commercial bank
Commercial bank is financial institution which accepts
deposits from the public and gives loans for the purposes

of consumption and investment to make profit.
Vietnamese commercial banks include 4 types. Included :
+
+
+
+

State commercial banks
Joint-stock commercial bank
Commercial bank with 100% foreign capital
Joint venture bank:


+ State commercial banks
Is the central bank under the government of Vietnam, the
bank in charge of the issuance and management of the
currency, and engaged in advisory duties to the government


of Vietnam on all relevant policies. To currency:
Bank interest
rate policy

The problem
of money in
the market

Exchange rate
policy

Management of foreign
currency reserves and
credit institutions of the
banking system


+ State commercial banks




Ex : Agribank, VietinBank, BIDV


+ Joint-stock commercial bank
Iestablished by capital contribution from many individuals or
from many companies in the form of shares. Each individual
or company that also contributes capital will own a limited
number of shares as prescribed by the State Bank.

Ex: Đông Á (EAB), VPBank, Quân Đội (MB)


+ Commercial bank with 100%foreign
capital

Ex: HSBC Việt Nam (Hongkong-Shanghai Bank Vietnam Limited - HSBC)
Shinhan Việt Nam (Shinhan Bank Vietnam Limited - SHBVN)

+ Joint venture bank
This is a group of banks established with capital contribution
between banks, one side is a commercial bank in Vietnam
and the other side is a foreign commercial bank currently
headquartered. located in Vietnam

Ex: Currently, in Vietnam, there are only two joint venture banks, namely
Indovina Bank Limited (IVB) and Vietnam - Russia Joint Venture Bank (VRB).


3. Policy Bank
Policy Bank is a State bank, operating not for profit, but
serving customers according to the State's priority policies.
Main activities are lending to policy beneficiaries such as
the poor, students, import and export in the field of
agriculture, labor export, job creation...
The main source of capital is from the capital provided by
the State budget and mobilized capital from the society


4.Co- operative bank
The bank of all people's credit funds established by the
people's credit funds and some legal entities in accordance with
the provisions of this Law for the main purpose of linking the
system, financial support, capital regulation in the system of
people's credit funds.

5. Investment bank
Investment bank is a bank specializing in
capital markets - medium and long-term
financial markets. Investment banks appear
with the role of helping enterprises and the
state to raise medium and long-term capital
through the issuance of securities. Most of
the capital of investment banks comes from
mobilization by issuing bonds. medium and
long term bonds


Thank you!