Financial system structure and development orientation for Vietnam in the period of 2020- 2025

Abstract

The finanical system is a network of financial intermediaries and financial market that play the key role in the economy as an intermediary between those who need financial sources and those who can provide financial sources. In order to develop the economy, the finanical system is required to develop based on a certain structure. There are two popular types of financial structure, bank-based financial system and market- based financial system. Which structure is better is a controversial question. However, regardless of financial structure, each country aims to mobilize capital effectively, allocate and filter financial sources and users in order to ensure the soundness and stability of its financial system. This paper analyses two types of financial structures and suggests some recommendation for Vietnam.