History of State Bank in Vietnam

3607 Words Sep 26th, 2012 15 Pages
HISTORY OF STATE BANK OF VIETNAM The development of the Vietnam banking system has closely linked with the national cause of revolution and construction.
Before the August Revolution in 1945, Vietnam was a feudal-colonial country under the French colonialists’ rule. The banking and credit system was founded and protected by the French colonialists through the Indo China bank. Its functioned as both the central bank of the whole Indochinese region (Vietnam, Laos and Cambodia) and a commercial bank. The bank was an effective tool for the colonial policy of the French government and enriched the French capitalists. Thus, one of the key tasks of the August Revolution then, was to build an independent and autonomous monetary and
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3. From 1975 to 1985: This is the ten-year postwar economic recovery after the liberation and reunification of the country. As such, Vietnam built up the new banking system under the new government, establishing a country – wide unified banking system and liquidating the banking system of the previous government in the South. Accordingly, the Vietnam National Bank of the government of the Republic of Vietnam (in the South) was nationalized and unified with the system of the State Bank of Vietnam, carrying out together the task of currency unification in the country. It issued new kinds of banknotes of the Socialist Republic of Vietnam and revoke the old banknotes in both the South and the North in 1978. In the late 1980s, basically, the state banking system did not implement the market – oriented monetary, but still served as a budget tool. Changes in the quality of the banking system operations, the gradual move to market – based operations only started since late 1980s.
4. From 1986 up to now:
Since 1986, many important events have happened, marking the significant “benchmarks” as follow:
+ From 1986 to 1990: the state management function was gradually separated from the commercial credit and monetary functions. The new mechanism of banking operations was built up and gradually improved. In May 1990, the Ordinance on the State Bank of Vietnam and ordinance on banking, credit co-operatives and finance companies, were enacted, thereby officially changing the

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