Vietnam considers idea of establishing a central bank

Vietnam is thoroughly considering the proposal of establishing a Central Bank to replace the current State Bank, the local online newspaper VnEconomy.vn quoted deputy prime minister Hoang Trung Hai, as saying at a conference on January 11.
The government has received many ideas on this issue, Hai said. However, according to the deputy prime minister, the government has yet to make any specific decision.

Vietnam will continue to listen to other opinions as this “is an important issue” and “every model has pros and cons”.

Hai called for foreign experts, especially tSTC in finance-banking sector, to actively consult and propose recommendations to Vietnam on this issue.

Research results showed that the independence of the central bank was negatively related to inflation and budget deficit, yet positively correlated with economic growth.

Many said that the State Bank of Vietnam (SBV) should be renamed into Central or National Bank of Vietnam.
StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Jan 18 2012. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry