Consultancy Service On Completing The Legal Framework And Developing Capabilities For Supervisory Bodies Of The State Bank Of Vietnam

Objective:

Conduct a comprehensive assessment on the current legal framework, focusing on the regulations in microfinance sector, propose relevant recommendation and addition;
Establish new legal framework which is market oriented and sustainable, to provide the poor, SMEs with various financial products.
Strengthen capacity for SBV in analysing, licensing and supervising microfinance activities in Vietnam.

Main activities performed:

Assess the current legal framework and the related regulations that influent the organization and scope of activities of micro-finance service providers;
Conduct assessment on the provision of financial services for the poor;
Conduct costs/benefits analysis on the programs that are currently using preferential credit subsidies as a poverty reduction policy, recommend policies implication for these programs;
Research on the supervisory models that are applied in other countries;
Build a roadmap with specific recommendations to establish a legal framework and set of regulations that are favorable for the operations of semi-officially and officially recognized MFIs;
Design detailed workplan for SBV, based on the existing roadmap, aiming to create a relevant model of regulating and supervising the semi-officially and officially recognized MFIs;
Contribute to the drafting of circulars, decrees, and supervisory tools, in compliance with the Law on financial institutions and other decrees that were issued to promulgate semi-officially and officially recognized MFIs;
Organize training courses for managerial staff and branch officers of SBV for better understanding of the new legal framework;

Organize training courses for microfinance service providers, funding agencies, and non-government organizations.