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makes the problem of identifying unfair competition more difficult and complicated. This trend, along with the multi-functional business
crab
Commercial banking based on the main pillars
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traditional activities
(receive money)
send, pay
and
content) is carried out on the basis of demand development.
bridge
as well as the ability to crab
commercial banking makes the level even higher
The impact of unfair competition by commercial banks is larger in extent and scope. That means, unfair competition in banking activities has a very large "overflow", it not only affects the efficiency of market operations but also affects the implementation of national monetary policy. In other words, effectively preventing unfair competition in banking activities will contribute positively to ensuring macroeconomic stability.
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CONCLUSION OF CHAPTER 3
The system of regulations on combating unfair competition in banking activities of commercial banks in Vietnam includes international legal regulations, domestic legal regulations and a system of regulations on commercial practices and business ethics in banking activities, in which, the regulations on commercial practices and business ethics in banking activities are an important source of additional regulations for determining unfairness in banking activities as a basis for competent state agencies to apply sanctions to credit institutions that engage in unfair competition. However, the regulations on commercial practices and business ethics in banking activities have not been clearly formed at both the banking sector level and each credit institution level. The law on combating unfair competition has not yet provided for a mechanism for applying business practices and ethics when determining unfairness in competitive behavior of credit institutions.
Basically, it can be seen that the content of Vietnamese legal regulations has well resolved the relationship between general law (Competition Law) and specialized law (Law on Credit Institutions), initially with provisions prohibiting unfair competition in banking activities, regulations on authority and measures to handle unfair competition. However, in terms of law, there are currently no specific regulations on unfair competition in banking activities.
The practice of competition in the market of commercial banks has shown many signs of unfair competition in the banking activities of commercial banks and tends to become more and more complicated. The settlement of violations of the law on currency and banking activities, which are essentially acts of unfair competition, is treated as administrative violations.
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about
banking activities will
not completely resolve the competition situation
unfair competition and affect the business environment.
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Chapter 4
VIEWPOINT, ORIENTATION OF CONSTRUCTION AND ORGANIZATION
IMPLEMENTATION OF LAWS AGAINST UNFAIR COMPETITION
IN BANKING ACTIVITIES OF COMMERCIAL BANKS IN VIETNAM TODAY
4.1. The need to develop anti-competitive legislation
soundness in banking operations of commercial banks in
Vietnam today
4.1.1. Establish a legal framework to combat unfair competition in banking activities of commercial banks according to market principles and ensure equality among commercial banks regardless of whether they are state-owned commercial banks or joint-stock commercial banks in order to build a safe and healthy banking business environment, maximally protecting the rights and legitimate interests of all parties in the market.
The Vietnamese banking market was officially formed since the State switched to a two-tier banking model. The commercial banking sector - business entities in the market are divided into [3], [69], [70], [71]: i) State-owned commercial banking sector, previously there were 5 banks with 1,496 branches and transaction offices, 9 public service units, 20 affiliated companies, 10 representative offices and 6 joint venture companies distributed nationwide and now there is only the Bank for Agriculture and Rural Development according to the Law on Credit Institutions 2010; ii) Joint stock commercial banking sector, as of December 31, 2009, the whole country had 37 joint stock commercial banks with about 650 branches3, transaction offices
3 Currently, the number of joint stock commercial banks has decreased due to the merger of 05 banks at the end of 2011 and the end of May 2012.
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not including transaction offices, transaction points, savings funds and 20 affiliated companies; iii) Joint venture banking sector currently has 5 banks; iv) 45 foreign bank branches in Vietnam; v) 5 100% foreign-owned banks. Thus,
Vietnam's banking system is relatively developed.
quantity, with enough
the
economic sectors participating. According to experts, the banking sector in Vietnam is currently facing fierce competition not only between domestic commercial banks and foreign commercial banks but also between banking groups with each other to gradually affirm their position in the market.
In terms of market share, the vast majority of state-owned banks are large banks in Vietnam, but in reality this correlation is changing as the joint stock commercial banks are trying to assert their position. To determine the market strength of banks, the 2010 Competition Management Department's 10-area assessment report of the Ministry of Industry and Trade sets out the following criteria: i) Bank capital; ii) Asset size; iii) Operating network and iv) Other factors such as information technology. At a general level, it can be initially assessed that the competition in banking activities in our country is becoming increasingly fierce, but the issue of unfair competition in banking activities is still a new issue in both theory and practice. Looking at the actual developments of the Vietnamese banking market in recent times, it shows that the Vietnamese banking market has had relative developments, in line with the State's orientation in different stages of development. The level of competition in the market is increasingly fierce, especially in the context of the participation of foreign investors in providing banking services in the market.
Before the Law on Credit Institutions 2010 came into effect, the law did not have provisions on unfair competition but only on illegal competition. However, in the process of performing its functions and tasks, the State Bank issued many documents to guide the operations of credit institutions, including regulating the competitive activities of
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credit institutions such as Directive No. 13/2000/NHNN14 dated December 19, 2000 on enhancing credit quality and safety in the operations of credit institutions, Circular No. 49/2004/TTBTC dated June 3, 2004 of the Ministry of Finance guiding the criteria for evaluating the financial performance of state-owned credit institutions and Decision 400/2004/QDNHNN dated April 16, 2004 of the State Bank of Vietnam promulgating regulations on classification of state-owned and people's joint stock commercial banks.
However, in the banking sector development strategy to 2010 and orientation to 2020, the Government affirms that state-owned commercial banks play a leading role in the Vietnamese banking market; the banking market in Vietnam operates in a context where the Government's policies are unstable, frequently changing and inconsistent; in the process of managing the banking market, the State often has administrative intervention measures in the market. This practice has made the market's operations not follow the rules of the market. This is a loophole for commercial banks to take advantage of policies to engage in unfair competition.
In the context that Vietnam is restructuring its economy, restructuring the banking system is considered a key task. The recent restructuring of the Vietnamese banking market shows that the Government has made efforts and demonstrated its determination to build a system of large-scale, safe and financially sound commercial banks. This move will
promises new developments in the process of perfecting the banking market.
Vietnamese banks. Therefore, perfecting the law against unfair competition in banking activities of Vietnamese commercial banks is essentially creating a tool to build a safe, transparent and healthy banking business environment in the post-restructuring conditions. Legal regulations against unfair competition in banking activities of commercial banks will become a legal tool to eliminate manifestations of unfair competition.
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healthy banking activities, creating a legal basis for requesting the people's court to protect the legitimate rights and interests violated by unfair competition acts. And when unfair competition acts are handled according to the provisions of law, it will contribute significantly to creating public trust in the banking system, attracting investors to invest capital in the banking sector.
4.1.2. Establishing the foundation
legal basis for use
use customs and standards
common business ethics in identifying and combating competition
Unfair competition in banking activities of commercial banks
Current law does not have regulations on business ethics but only regulations on social ethics in the 2005 Civil Code. Accordingly, social ethics are common standards of conduct between people in social life, recognized and respected by the community. Clause 4, Article 3 of the Law on Credit Institutions 2010 stipulates: “Organizations and individuals participating in banking activities have the right to agree to apply commercial practices, including: a) Practices
international trade
by the International Chamber of Commerce
promulgation; b) Custom
other commerce not contrary to the laws of Vietnam".
Looking at the provisions of current law, it can be seen that Vietnamese law has recognized the application of customs in banking business, but these customs
customs issued by the International Chamber of Commerce and other commercial practices
not contrary to Vietnamese law, how to understand and apply to apply and resolve unfair competition cases in Vietnam is very difficult. Because, according to the provisions of Clause 4, Article 3 of the Commercial Law 2005, commercial practice is a habit widely recognized in commercial activities in a region, area or a commercial field, with clear content recognized by the parties to determine the rights and obligations of the parties in
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commercial activities. To apply commercial practices in business, the following conditions must be satisfied:
No legal provisions;
The parties have no agreement;
There is no established practice between the parties;
Must not be contrary to the principles prescribed in the Commercial Law and in the Civil Code.
To have business ethics, business practices, market economy
The business environment of each country needs to have a long enough development period to accumulate experience, rules, and good business practices of enterprises. According to Ngo Thai Phuong, the code of ethics for banking business needs to include and mention the following six basic ethical values and contents: i) honesty; ii) fairness; iii) trustworthiness, iv) legality; iv) transparency and
vi) social responsibility [80, p.1417].
Theory and practice show that banking business ethics reflect the level of development of the banking market through different stages of development; the practice of banking business ethics of commercial banks depends on the ethics of the managers and operators of that commercial bank; banking business ethics are more susceptible to degradation due to the impact of profit, greed and the influence of interest groups than other business fields and are also strongly influenced by the Banking Association and public opinion. The formation of banking business ethics standards plays an important role in combating unfair competition in banking activities. Because:
In essence, business ethics in general, banking business ethics
The ethics of commercial banks in particular are what motivates the actions of commercial banks towards the social community. In the condition that Vietnamese commercial banks are trying to "do business according to the law", the formation of banking business ethics standards will contribute to the formation of a system of