Factors Affecting the Development and Implementation of Laws on Combating Unfair Competition in Banking Activities

The European Union has also issued detailed guidelines on the obligations of credit institutions in credit activities and guidelines on comparative advertising and misleading advertising, meaning that the European Union has also paid attention to the specificity of combating unfair competition in banking activities in the banking activities of commercial banks.

Fourthly , regarding the method of recording unfair competition acts/tricks in banking activities of credit institutions, it is necessary to approach in an open way, that is, in addition to regulations on each unfair competition act in banking activities, it is also necessary to develop general criteria to determine unfair competition acts in each specific case and incident. This requirement for the law against unfair competition in banking activities stems from the abstract, difficult to determine, and difficult to prove nature of unfair competition tricks in banking activities. When regulating unfair competition tricks in banking activities, the law against unfair competition in banking activities must clarify the boundary between business freedom and unfair competition tricks of credit institutions, that is, tricks that go against the common market order and standards as conceived by the European Union.

Fifth , banking business customs and ethics need to have a worthy position .

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worthy in the system of norms used

use to

anti-competitive

healthy competition in banking activities. As analyzed above, banking business customs and ethics are a source of supplement for the shortcomings of the law against unfair competition in banking activities. Therefore, in parallel with the construction of a system of legal regulations against unfair competition

The soundness of banking operations of credit institutions still needs to be

pay attention to studying the mechanism of applying banking business ethics and customs when determining the unfairness of each unfair competition tactic, because when determining and proving unfair competition is

It must be clarified that the competitive tricks are not clean, not decent, and contrary to customs and business ethics in banking activities.

2.2.4. Factors affecting the development and implementation of laws against unfair competition in banking activities

One is the level of development of the banking market. The level of development of the banking market is essentially the process of perfecting the market economy in each country. Through the development process, the rules and requirements of management and operation of the banking market are gradually revealed and along with that, the requirement to ensure safety, health and equality among service providers.

banking is getting more and more

should be more urgent than ever

all. Level

market development

The banking market has a strong influence and impact on the construction and implementation of

current laws on unfair competition in business activities

banking. This is reflected in the following aspects:

Rank

First, the increasingly diverse participation of subjects

body

bow

service application

Banks will increase the level of competition in the banking market, thereby changing the competitive correlation and the trend of choosing banking services of banking service users.

Different from other market sectors

other school, to

participate in the market

In the banking market, credit institutions must comply with many difficult conditions, especially conditions on capital, administrators, management and requirements on security and safety for banking transactions. According to the research of author Nguyen Van Tuyen, for the banking market, competitors in the banking service market are often limited in number and the increase or decrease of this number is very difficult and limited, sometimes not entirely dependent on the will of the competitors themselves. This is also understandable because allowing an organization to participate in banking business activities or allowing these economic organizations to withdraw from the banking service market requires

requires adherence to a tightly controlled process and under very stringent conditions [103, p.5156].

Currently, along with the pressure of opening up and international integration, the participation of foreign investors has brought significant capital to the banking market, but it also raises many issues that need to be solved such as the level of permission for investors.

contribute capital, buy shares at credit institutions, relationships and responsibilities

responsibilities of parent bank

Foreigners in Vietnam…

Foreigners when establishing 100% capital banks

Second, the increasingly high demands and requirements for banking services require credit institutions to increase costs, especially the requirement to improve the quality and system of providing banking services to avoid creating loopholes for competitors to exploit. To ensure the provision of high-quality banking services, credit institutions must increase investment in human resources and technology.

bank, technology

management skills, especially management

human resources

and administration

business.

In the study of author Nguyen Thi Mui, it was clearly shown that according to the experience of foreign experts, technology factors can help reduce 76% of operating costs.

banking operations, but to have a technological platform requires banks

banks must make large investments. This is not easy for Vietnamese commercial banks due to limited capital and financial capacity. Although they are very aware of the factors

The decisive factor in competition is technology.

and investment priority

for this field,

However, with the existing potential, the technology of Vietnamese commercial banks is only at a low level in the region. According to the World Bank's assessment, the technology index of Vietnamese banks is only 0.47, while that of Thailand and Indonesia is 0.07, Malaysia is 1.08, and Singapore is 1.95 [66, p.3842].

Third, the increased instability of the banking market and the sophistication of unfair competition tactics by credit institutions. The situation of taking advantage of the "ambiguous" situation or spreading false rumors has seriously affected the operations of commercial banks.

seriously affect the performance of banks; from information about

The merger and consolidation of banks has led to the appearance or "promise" to buy or invest in shares of major shareholders/strategic shareholders, managers and executives of credit institutions... as has happened in our country's banking market in recent times, which has strongly impacted the psychology of customers, depositors and users of banking services; the act of taking advantage of or spreading false rumors that affect the banking system... is considered the starting point for unfair competition in the Vietnamese banking market.

Fourth, the level of dependence between domestic credit institutions as well as the level of dependence between the Vietnamese banking market and the world banking market increases systemic risks for credit institutions. This reality will lead to unfair competition with foreign elements and therefore, the fight against unfair competition in banking activities will become more complicated and difficult.

Fifth, the level of development of the banking market will shape the business practices and ethics as the standard for assessing the unfairness of competitive behavior of credit institutions. In fact, the more the banking market develops, the more business practices and ethics will develop and become more clearly defined. At that time, competent state agencies can easily identify good business practices and ethics to identify and explain an unfair competitive behavior of credit institutions.

Second , the level of perfection of the law on combating unfair competition and the legal regulations on combating unfair competition in banking activities. Considered an effective tool against unfair competition, the law on combating unfair competition creates a legal basis for identifying unfair competition behaviors and measures to deal with these behaviors. The level of perfection of the law on combating unfair competition shows the need for legal regulations on combating unfair competition.

The regulations on unfair competition in banking activities must be clear, specific and easy to apply, especially the regulations on criteria for determining unfair competition. The above analysis has demonstrated that banking activities are business activities that contain many risks, the transaction objects are special currencies and commodities and require understanding of business processes. Therefore, the law on combating unfair competition in banking activities must clarify the specific features and typical unfair competition behaviors in banking activities as a basis for regulating these behaviors in legal documents.

In addition to perfecting legal regulations, stemming from the abstract nature

The image and possibility of being blamed, the law on the right to association as well as the trend of promoting corporate social responsibility require credit institutions to build their core values as the basis for forming internal business ethics standards of their credit institutions.

Third , the requirements and level of intervention of the state management agency on currency and banking activities in the banking market. The State and the market

are two opposites or have a relationship

extra

interdependence, the State affects the market

What is the market like is a topic that has been explained quite clearly by economic scientists.

clear. Economists

has affirmed the

House impact/intervention

The participation of foreign investors in the market economy is inevitable, but the level of intervention/impact of

State into the economy has

significantly different. If

point of view

The classical school of economics believes that the state needs to create an institutional environment for economic development through the legal system, while the neoclassical school believes that state intervention needs to create a stable legal environment and reasonable tax policies to encourage consumers; and the Keynesian school asserts that to escape crisis, unemployment and recession, the state must directly regulate the economy... Therefore, the key issue in resolving the relationship between the State and the Market is to harmoniously resolve this relationship.

The relationship between state power and market power; control of state intervention in the market to ensure that the economy develops in harmony with the interests of the people, businesses and the state as a central nucleus of the economic structure [34, p.2126]. To ensure the safety of banking operations and the system of credit institutions, the laws of countries often strictly control the conditions for granting licenses to establish and maintain the conditions for banking operations throughout its existence and prescribe the intervention measures of the Central Bank and the operations of credit institutions.

used to perform the function of "bank of banks" in

where necessary.

According to the research of author Nguyen Van Tuyen, "It is the strict control of the government over the entry into or withdrawal from the banking services market of competitors that has made this market safer, healthier and the level of competition between competitors in the market is also less fierce" [103, p.5156]. In France, the level of intervention of the Central Bank in banking activities at first was to save banks from the risk of bankruptcy, but until 1998, that precedent changed to facilitate the dissolution of unviable credit institutions and thereby ensure better allocation of banking resources [14, p.237]. Therefore, when determining the impact of the Central Bank on activities against unfair competition in banking activities, it is necessary to consider the following factors:

i) The extent to which the State allows credit institutions to participate in the market, i.e. the extent to which banking activities are liberalized;

ii) The complexity of competition in the banking sector taking place in socio-economic life as well as the trend of that development;

iii) Position and role of banking activities in the socio-economic regime;

iv) Level of integration of the banking industry;

v) The effectiveness of State management activities in the banking sector as well as the banking legal system is sufficient to regulate the competitive activities of credit institutions in the market.

Fourth , the awareness of credit institutions, managers and executives of credit institutions as well as each bank officer regarding the consequences of unfair competition and the requirement to implement the law on combating unfair competition in banking activities. This is the decisive factor and ensures the effectiveness of efforts to combat unfair competition in banking activities.

Reality

shows, despite efforts

no matter how successful the legislative force is

But if legal regulations are not implemented by the subjects, they are just lifeless laws on paper.

In essence, unfair competition in banking activities

Banking is an unfair competition behavior, contrary to the ethical standards of banking business, therefore, only when credit institutions, managers, executives of credit institutions and each bank officer are aware of the manifestations of unfair competition in their business activities and adjust to the requirements of fair competition, then "unfair competition" does not need to be fought but it will no longer have a chance to exist. Therefore, to ensure effective enforcement of the law against unfair competition in banking activities, credit institutions need to be aware of the negative consequences of carrying out unfair competition behaviors in order to avoid carrying them out. Enforcement of the law against unfair competition in banking activities must be an autonomous action, motivated by the conscience and social responsibility of each credit institution.

Fifth , the voice and role of the Banking Association in the fight against unfair competition in banking activities and the requirement for associations to

Members must comply with anti-unfair competition laws, rules,

Business standards are developed by the Association. The Banking Association is the focal point in developing banking business ethics standards that go beyond legal business requirements, directing the business activities of credit institutions towards fair competition. The Banking Association plays a central role in detecting and preventing unfair competition in the market through measures according to the Association's regulations. The Association's voice is a positive counter-argument to legal regulations on unfair competition to avoid unfeasible regulations.

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