Applicable laws on governance of joint stock commercial banks: Facts and issues

Abstract

Governance of commercial joint stock commercial banks (JSBs) means individual banks management at micro level and the stability of financial system at macro level. That is why bank governance should be preferably aimed at strengthening the stability of the financial market not at maximizing the profit of shareholders. However, the corporate governance in general and governance of JSCBs in particular is rather fresh in Vietnam and exposes some issues on legal framework . In this article, the author will work with the conception development; review legal framework for corporate governance in Vietnam; identify obstacles in implementation of applicable law and propose solutions to complete legal framework to enhance the role of governance of Vietnam joint stock commercial banks.