Reasons for Regulating the Vietnamese Banking System
Topic: Why banking sector needs to be regulated? Apply for Vietnamese banking system.
Structure:
I. Basic characteristics of banking 1. Basic characteristics of banking 2. Characteristics of Vietnamese banking sector II. Reasons for regulating banking system. 1. Banking regulation 2. Reasons why banking system needs to be regulated 3. Regulators’ measures
III. Applying for Vietnamese banking system
1. Actual situation of banking system in Vietnam
2. Banking regulations in Vietnam
3. Disadvantages of banking regulation
I. Basic characteristics of banking
1. Basic characteristics of banking:
1.1. Dealing in money:
The banks accept deposits from the public and advancing them as loans to the needy people. The deposits may be of different types current, fixed, savings, etc. accounts. The deposits are accepted on various terms and conditions.
1.2. Deposits must be withdrawn able:
The deposits (other than fixed deposits) made by the public can be withdraw able by cheques, draft or otherwise, i.e., the bank issue and pay cheques. The deposits are usually withdrawn able on demand.
1.3. Dealing with credit:
The banks are the institutions that can create credit i.e., creation of additional money for lending. Thus, "creation of credit' is the unique feature of banking.
1.4. Commercial in nature:
Since all the banking functions are carried on with the aim of making profit, it is regarded as a commercial institution.
1.5. Nature of agent:
Besides the basic functions of accepting deposits and lending money as loans, banks possess the character of an agent because of its various agency services.
2. Characteristics of Vietnamese banking sector. - The National Assembly is the body monitoring the implementation of monetary policy. Meanwhile, the central bank acts as direct government agencies promulgate and implement the monetary policy. SB also made loans to banks, representatives of the state-owned commercial banks (SOCBs).
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Structure:
I. Basic characteristics of banking 1. Basic characteristics of banking 2. Characteristics of Vietnamese banking sector II. Reasons for regulating banking system. 1. Banking regulation 2. Reasons why banking system needs to be regulated 3. Regulators’ measures
III. Applying for Vietnamese banking system
1. Actual situation of banking system in Vietnam
2. Banking regulations in Vietnam
3. Disadvantages of banking regulation
I. Basic characteristics of banking
1. Basic characteristics of banking:
1.1. Dealing in money:
The banks accept deposits from the public and advancing them as loans to the needy people. The deposits may be of different types current, fixed, savings, etc. accounts. The deposits are accepted on various terms and conditions.
1.2. Deposits must be withdrawn able:
The deposits (other than fixed deposits) made by the public can be withdraw able by cheques, draft or otherwise, i.e., the bank issue and pay cheques. The deposits are usually withdrawn able on demand.
1.3. Dealing with credit:
The banks are the institutions that can create credit i.e., creation of additional money for lending. Thus, "creation of credit' is the unique feature of banking.
1.4. Commercial in nature:
Since all the banking functions are carried on with the aim of making profit, it is regarded as a commercial institution.
1.5. Nature of agent:
Besides the basic functions of accepting deposits and lending money as loans, banks possess the character of an agent because of its various agency services.
2. Characteristics of Vietnamese banking sector. - The National Assembly is the body monitoring the implementation of monetary policy. Meanwhile, the central bank acts as direct government agencies promulgate and implement the monetary policy. SB also made loans to banks, representatives of the state-owned commercial banks (SOCBs).
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