Thông tư 312/2016/TT-BTC chế độ tài chính đối với Bảo hiểm tiền gửi Việt Nam

THE MINISTRY OF FINANCE 

Circular No. 312/2016/TT-BTC dated November 24, 2016 of the Ministry of Finance defining financial regulations with respect to deposit insurance of Vietnam

Pursuant to the Law on Deposit Insurance No. 06/2012/QH13 dated June 18, 2012;

Pursuant to the Law on management and utilization of state capital held by vested in the enterprise’s manufacturing and business activities No. 69/2014/QH13 dated November 26, 2014;

Pursuant to the Government’s Decree No. 68/2013/ND-CP dated June 28, 2013 stipulating in detail the implementation of the Law on deposit insurance;  

Pursuant to the Government’s Decree No. 215/2013/ND-CP dated December 23, 2013 defining the functions, tasks, entitlements and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 91/2015/ND-CP dated October 13, 2015on state capital held by vestment in enterprises, use and management of capital and assets in enterprises;

Pursuant to the Government’s Decree No. 87/2015/ND-CP dated October 6, 2015 on supervision of state capital held by vestment in enterprises; financial supervision, performance assessment and disclosure of financial information of state-owned and state-invested enterprises;

Pursuant to the Prime Minister’s Decision No. 1394/QD-TTg dated August 13, 2013 on the establishment of Deposit Insurance of Vietnam;

Pursuant to the Prime Minister’s Decision No. 1395/QD-TTg dated August 13, 2013 on approval of charter of organization and performance of Deposit Insurance of Vietnam;

Pursuant to Decision No. 527/QD-TTg dated April 1, 2016 of the Prime Minister on amendments to Charter of organization and operation of Deposit insurance of Vietnam issued together with Decision No. 1395/QD-TTg dated August 13, 2013 of the Prime Minister;

At the proposal of the Director of the Financial Department, banks and financial institutions,

The Minister of Finance has promulgated the Circular defining financial regulations with respect to Deposit Insurance of Vietnam.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment and subject of application

This Circular deals with financial regulations with respect to Deposit Insurance of Vietnam, which is established in accordance with the Prime Minister’s Decision No.1394/QD-TTg dated August 13, 2013 on the establishment of Deposit Insurance of Vietnam.

Article 2. Principles of financial management

1. Deposit Insurance of Vietnam is a financial institution that is operating in the form of a single-member limited liability company of which 100% charter capital is held by the State, having a legal status, a seal, and an account under Vietnamese law, operating on a not-for-profit basis, and ensuring capital adequacy and self-financed expenses.   

2. Sources of revenues of Deposit Insurance of Vietnam are exempted from all taxes according to the provisions of law.  

3. Deposit Insurance of Vietnam shall do the bookkeeping for its entire system; collect revenues and provide for expenditures, and make financial statement according to the requirements set out in this Circular and other legislative documents.  

Article 3. Liability regime

1. Board of Directors of Deposit Insurance of Vietnam shall be liable to the law, state management agencies for managing capital adequacy and assets, use of loan, and complying with financial, accounting and auditing regulations of Deposit Insurance of Vietnam.

2. Responsibility regime applicable to the President and members of the Board of Directors, Director General, Deputy General Director, controllers, Chief accountant of Deposit insurance of Vietnam shall be imposed in accordance with regulations of law on liability applicable to President and members of Board of members, General Director, Deputy General Director, controllers, Chief accountant in a single-member limited liability company of which 100% of charter capital is held by the State.

Chapter II

CAPITAL AND ASSET MANAGEMENT

Article 4. Operational capital of Deposit Insurance of Vietnam

Operation capital of Deposit Insurance of Vietnam consists of charter capital provided by the state budget, revenues from deposit insurance premiums, investment in idle funds and other legal sources of revenues according to the law, particularly as follows:

1. Charter capital

a) Charter capital of VND 5 trillion provided by the state budget and other legal sources;

b) When adjustment to charter capital is required, Board of Directors of Deposit Insurance of Vietnam shall report to the Ministry of Finance who shall then proactively coordinate with the State Bank of Vietnam to make submission to the Prime Minister for consideration.

2. Technical reserve funds are raised from the following sources:  

a) Annual deposit insurance premiums;  

b) Revenues from investment of idle funds of which an amount is deducted for covering operational costs of Deposit Insurance of Vietnam in accordance with Clause 3, Article 6 hereof;

c) Unclaimed insurance payout according to the regulations set out in Clause 6, Article 26 of the Law on deposit insurance;

d) Remaining amount (if any) from liquidation of assets by organizations having deposit insurance (hereinafter referred to as insured institutions) in accordance with Clause 2, Article 16 hereof;

dd) Annual outstanding balance after development investment funds, commendation and welfare funds are built up according to the regulations set out in Point dd, Paragraph 2, Article 21 hereof (if any).

3. Development investment funds.

4. Other capitals according to the provisions of law, including:

a) Capital received as aids according to the regulations set out in the Law on deposit insurance and relevant legal documents;  

b) Legal financed capital from domestic and foreign organizations, individuals (if any);  

c) Differences from re-evaluation of assets;

d) Outstanding balance that is not allocated to funds (if any);

dd) Other legal sources.

Article 5. Principles of capital use

1. Deposit Insurance of Vietnam is entitled to use capital to serve its operation according to the law.  Using capital of Deposit Insurance of Vietnam must ensure the safety and development of capital.

2. Deposit Insurance of Vietnam shall be responsible for monitoring all the existing capitals and assets, doing the bookkeeping in strict compliance with current financial regime and statistics, reflecting sufficiently, accurately and punctually changes in capital and assets during its operation, defining specific responsibilities of each department, individual for causing damage and loss of its capital, assets.  

3. With respect to investment and procurement of fixed assets, Deposit Insurance of Vietnam shall comply with regulations of law applicable to single-member limited liability company of which 100% charter capital is held by the State. Deposit Insurance of Vietnam is entitled to procure and invest in fixed assets in the limitation that the remaining value of the fixed assets would not exceed 30% of the charter capital plus the value of development investment fund stated in the accounting records.  Investment and procurement of fixed assets must comply with state regulations, ensuring practice of thrift and anti-dissipation within the five-year plan approved by the Board of Directors.  

4. Deposit Insurance of Vietnam is entitled to use its temporarily idle funds to purchase Government bonds, treasury bills of State bank of Vietnam and make deposits at State Bank of Vietnam.  

5. The technical reserve funds shall be used for the purpose of paying insurance payout to depositors in accordance with the law on deposit insurance.

a) In case the technical reserve funds are not sufficient to pay insurance payout to depositors, Deposit Insurance of Vietnam may receive aids or borrow from credit institutions or other organizations guaranteed by the Government in accordance with the Law on deposit insurance and its guiding documents.

b) In a case where Deposit Insurance of Vietnam has to sell Government bonds and/or treasury bills of the State bank of Vietnam in order to pay insurance payout to depositors, the difference between the selling price and buying price (positive or negative) shall be included in the technical reserve fund.

Article 6. Management of revenues derived from investments in idle funds

1. Deposit Insurance of Vietnam should monitor and separately record the revenues earned from the investment in idle funds as prescribed in Clause 4 Article 5 of this Circular.

2. Deposit Insurance of Vietnam is entitled to deduct an amount from the revenues earned from investment in idle funds so as to cover its costs.

a) Annually, Deposit Insurance of Vietnam shall determine a specific amount to be deducted from revenues earned from investment in idle funds for the purpose of being included in revenues and send it to the Ministry of Finance before October 30 of the year preceding the planned year, enclosed with a plan for capital use, estimated revenues, costs, and other relevant documents.

b) Within 60 days from the date on which sufficient documents are received, the Ministry of Finance shall, according to request of Deposit Insurance of Vietnam, take charge and cooperate with the State bank of Vietnam to determine a specific amount to be deducted in the planned year for Deposit Insurance of Vietnam.

c) The amount to be deducted shall be considered changing upon request of Deposit Insurance of Vietnam if the State, in the planned year, changes policies for deposit insurance or any of force majeure events prescribed in Clause 4 Article 7 hereof occurs that affects revenues from investment in idle funds of Deposit Insurance of Vietnam.

3. The remaining amount of revenues from which an amount is deducted to cover operational costs prescribed in Clause 2 hereof shall be included in the technical reserve fund.

Article 7. Capital preservation of Deposit Insurance of Vietnam

1. Deposit Insurance of Vietnam takes responsibility for preserving and developing capital. Any fluctuation in state capital held by Deposit Insurance of Vietnam shall be reported to the State Bank of Vietnam and the Ministry of Finance for surveillance.

2. The preservation of state capital held by Deposit Insurance of Vietnam shall be carried out as follows:

a) Comply with regulations on management of capital use, assets, distribution of balance, other regulations on financial management and accounting system in accordance with regulations of law.

b) Buy property insurance as prescribed by law.

c) Deal with property losses, irrecoverable debts and build up loan loss reserves as prescribed by law.

d) Other measures in respect of preservation of state capital held by Deposit Insurance of Vietnam as prescribed by law.

3. Annually, Deposit Insurance of Vietnam shall assess the capital reservation level of Deposit Insurance of Vietnam as follows:

a) The operating results of Deposit Insurance of Vietnam shall be considered capital preservation if no negative balance arises or positive balance arises.

b) The operating results of Deposit Insurance of Vietnam shall be considered non capital preservation if negative balance arises (including negative accumulated balance).

4. When the capital preservation level is assessed, Deposit Insurance of Vietnam is entitled to exclude objectives factors that affect its capital and revenues, including the following cases:

a) The State adjusts policies for deposit insurance in respect of: deposit insurance premiums, limited insurance payout;

b) The amount of technical reserve fund of Deposit Insurance of Vietnam declines due to coverage of insurance payout to depositors at insured institutions resulting in a decline in sources of funds and revenues earned in such year of Deposit Insurance of Vietnam.

c) In case of natural disaster, conflagration, epidemic diseases, war and other force majeure events.

Article 8. Investment, construction, and procurement of fixed assets

The competence to decide, procedures for investment, construction, and procurement of fixed assets of Deposit Insurance of Vietnam shall be carried out in accordance with regulations of law applicable to single-member limited liability company of which 100% charter capital is held by the State, in which the competence to decide projects for investment, construction, and procurement of fixed assets of Board of Directors of the Deposit Insurance of Vietnam shall be carried out in accordance with the regulations on competence applicable to Board of members of single-member limited liability company of which 100% charter capital is held by the State.

Article 9. Internal regulations on asset management in Deposit Insurance of Vietnam

Deposit Insurance of Vietnam must formulate and promulgate Internal regulations on management and use of types of assets of Deposit Insurance of Vietnam. The internal regulations must specify the coordination of each department, individual in case of destruction, losses, and damage to Deposit Insurance of Vietnam.

Article 10. Inventory and re-evaluation of assets

1. Inventory of assets

Deposit Insurance of Vietnam shall carry out periodical or irregular inventory of assets after accounting books are closed for the formulation of annual financial statements; after natural disaster and hostility; or assets of Deposit Insurance of Vietnam are changed for some reason; or as stipulated by the law.  Deposit Insurance of Vietnam should inventory assets in surplus and in shortage, determine causes, responsibility of relevant organizations and individuals and put forth an indemnity according to the regulations.

Deposit Insurance of Vietnam shall handle and inventory assets of the enterprises of which 100% charter capital is held by the State according to the law.

2. Re-evaluation of assets:

a) Deposit Insurance of Vietnam shall carry out re-evaluation of assets according to the decision of regulatory agencies;

b) The re-evaluation of assets should be in strict compliance with state regulations.  Increasing or decreasing differences of value due to the re-evaluation of assets as regulated in Point a of this Clause are settled according to the provisions of law in respect of each specific case.

Article 11. Fixed asset depreciation

Deposit Insurance of Vietnam shall depreciate fixed assets according to the law in respect of enterprises.  

Article 12. Handling of asset losses

Any loss of assets caused to Deposit Insurance of Vietnam (except for losses subject to deposit insurance commitments of Deposit Insurance of Vietnam) must be documented to determine lost value, causes, and responsibilities and handled as below:

1. If the loss is caused by human errors, the person causing such loss shall pay compensation.  Board of Directors of Deposit Insurance of Vietnam shall decide degree of compensation and take responsibility for its decision.

2. Insured assets shall be handled under the contract of insurance.

3. Shortage of the lost value after being recovered and compensated by individuals, collectives, insurers, loan loss reserves, and the deficit shall be included in the expenses in the period.

4. With respect to losses or serious damage caused by natural disaster, hostility or force majeure events respectively that could not be tackled by Deposit Insurance of Vietnam, its Board of Directors shall plan a measure of handling and report to the State Bank of Vietnam who shall then make submission to the Prime Minister for decision.

5. Deposit Insurance of Vietnam shall be responsible for handling losses of assets punctually. In case those losses are not tackled, the Board of Directors and General Director shall be held accountable to law.

Article 13. Fixed asset lease

1. Deposit Insurance of Vietnam is entitled to lease assets in compliance with the principle of efficiency, preservation and development of capital according to the law in respect of the enterprises of which 100% charter capital is held by the State.

2. Use of assets for lease must be in strict compliance with the regulations of the Civil Law and other relevant regulations.

Article 14. Liquidation and assignment of fixed assets

1. Deposit Insurance of Vietnam is entitled to proactively assign, sell or liquidate fixed assets in damage or technically obsolete, unwanted or unusable to recover capital in compliance with the principle of openness, transparency and preservation of capital.

2. The competence to decide, methods, procedures for liquidation, transfer of fixed assets of Deposit Insurance of Vietnam shall be carried out in accordance with regulations of law applicable to single-member limited liability company of which 100% charter capital is held by the State, in which the competence to decide projects for liquidation, sale of fixed assets of Board of Directors of the Deposit Insurance of Vietnam shall be carried out in accordance with the regulations on competence applicable to Board of members of single-member limited liability company of which 100% charter capital is held by the State.

Article 15. Management of accounts receivable, accounts payable

Deposit Insurance of Vietnam shall manage accounts receivable and accounts payable in accordance with regulations of law applicable to single-member limited liability company of which 100% charter capital is held by the State.

Article 16. Handling of receipts from liquidation of assets of insured institutions going bankrupt.

1. Liquidation of assets of insured institutions going bankrupt shall be executed according to the provisions of law.

2. The sums collected from liquidation of assets of insured institutions shall be added to the technical reserve fund.

Chapter III

REVENUES AND EXPENDITURES

Article 17. Management of revenues and expenditures of Deposit Insurance of Vietnam

1. The Board of Directors of Deposit Insurance of Vietnam shall be held accountable to the State bank of Vietnam and the law in the close management, guarantee of the correctness, honesty and legality of amounts receivable and costs of Deposit Insurance of Vietnam.

2. All of amounts receivable and expenditures on the operation of Deposit Insurance of Vietnam shall have documentary evidence in accordance with regulations of law and be sufficiently recorded in accounting books of Deposit Insurance of Vietnam in conformity with accounting system prescribed by the Ministry of Finance.

3. All of amounts receivable and expenditures of Deposit Insurance of Vietnam shall determined by Vietnamese dong; in case of amounts receivable and expenditures in a foreign currency, they shall be converted into Vietnamese dong in accordance with applicable law.

4. Deposit Insurance of Vietnam shall make correct and sufficient calculation of operating costs, cover all expenditures using its amounts receivable and take responsibility for its operating performance.

Article 18. Receipts of Deposit Insurance of Vietnam

1. Receipts of Deposit Insurance of Vietnam consist of:

1.1. Receipts from financial activities:  is an amount deducted from the revenue earned from annual investment of idle funds in accordance with Clause 2 Article 6 hereof.

1.2. Receipts from deposit insurance services:

a) Receipts from fines imposed on insured institutions that violate regulations on the amount and time limit for payment of premiums according to the provisions of law;

b) Receipts from other deposit insurance services.

1.3. Receipts from other activities:

a) Receipts from liquidation, sale and assignment of fixed assets;

b) Receipts from lease of fixed assets;

c) Receipts from consultancy services and training for officers of insured institutions;

d) Other receipts.

2. Rules for accounting of receipts

Amounts receivable of Deposit Insurance of Vietnam must be determined in accordance with accounting standards and relevant law provisions with eligible documentary evidence and be included in revenues. With regard to amounts receivable from financial activities:

2.1. At the end of month or quarter, Deposit Insurance of Vietnam shall rely on a rate permissible to be deducted from the receipts from annual investment of idle capital to cover operational expenses according to the regulations set out in Clause 2 Article 6 hereof and the receipts earned from the investment of idle capital in such a month, quarter shall be temporarily deducted for entering in the accounts as earnings (equal to the multiplication of the rate by the receipts from the investment of idle capital); the remaining receipts from the investment of idle capital shall be entered in the technical reserve funds.  In case such a deductible rate used to cover operational expenses is yet to be approved by the Ministry of Finance, Deposit Insurance of Vietnam shall temporarily enter into the accounts as earnings with a rate equal to 80% of the preceding year’s deductible rate.

2.2. At the end of year, based on the year’s receipts from investment of idle capital, Deposit Insurance of Vietnam shall be responsible for entering accurately the receipts in the accounts as earnings and the receipts after being partly deducted to cover the expenses according to the regulations set out in Clause 2 Article 6 hereof shall be supplemented to the technical reserve funds;

2.3. After State Audit of Vietnam’s annual finance audit report or the competent agencies’ conclusions on financial receipts and expenditures of Deposit Insurance of Vietnam are available, in the event the receipts from the investment of idle capital change, Deposit Insurance of Vietnam shall be responsible for adjusting allocation of the receipts to earnings and the receipts after being partly deducted to cover the operational expenses according to the regulations set out in Clause 2 Article 6 hereof to be supplemented to the technical reserve funds.

Article 19. Expenditures of Deposit Insurance of Vietnam

1. Expenditures of Deposit Insurance of Vietnam consist of:

1.1. Expenditures for interests for the loans coming from Deposit Insurance of Vietnam’s capital temporarily insufficient to pay insurance payout to depositors according to the regulations set out in Clause 12, Article 13 of the Law on deposit insurance.

1.2. Expenditures on payment and entrusted services.

1.3. Expenditures on participation in special control process; participation in management and liquidation of assets of insured institutions.

1.4. Expenditures for debt collection services (if any) to organizations permitted to practice debt collection services according to the provisions of law with respect to doubtful debts and debts of which Deposit Insurance of Vietnam has become the creditor when participating in the liquidation of assets of insured institutions going bankrupt according to the provisions of law.

1.5. Expenditures for exchange differences according to the regulations set out in the accounting standards and the provisions of law.

1.6. Expenditures for propagation and education of law and deposit insurance policies.  Content and amount of payment shall be applied according to the provisions of law. Total amount of payment for these expenditures should not exceed 3% of the total appropriate payment.

1.7. Expenditures to employees:

a) Wages and remuneration paid to managerial officers of Deposit Insurance of Vietnam as instructed by the Ministry of Labor, Invalids and Social Affairs;

b) Wages and amounts considered wages paid to employees as decided by the Board of Directors according to the instructions of the Ministry of Labor, Invalids and Social Affairs;

c) Expenditures on food expenses in accordance with regulations of law on corporate income tax;

d) Expenditures on female laborers according to regulated regime;

dd) Expenditures on business attire in cash or in kind: not exceeding the prescribed maximum amount of payment for business attire in accordance with regulations of law on corporate income tax;

e) Expenditures on personal protective equipment as regulated;

g) Expenditures on severance pay and redundancy pay;

h) Expenditures on regular check-ups for laborers and other medical expenses according to regulated regime;

i) Expenditures on annual leave pay;

k) Expenditures on social insurance, medical insurance, unemployment insurance, trade union expenses and other contributions according to regulated regime;

l) Expenditures of welfare nature paid for employees in accordance with law on corporate income tax (if any).

1.8. Expenditures on management activities including:

a) Expenditures on office supplies;

b) Expenditures on postal services, communications, telexes, leased lines, facsimile transmission;

c) Expenditures on electricity, water, medical services, office and environment sanitation;

d) Expenditures on fuel;

dd) Expenditures on formalities, external relations, festivities and conferences according to current regulations and must be closely related to activities of Deposit Insurance of Vietnam.  These expenditures must not exceed 5% of the total appropriate payment.

e) Expenditures on officers’ domestic business travel expenses;

g) Expenditures on officers’ overseas business travel expenses:  to be applied according to the proposed plan approved by Deposit Insurance of Vietnam.  Content and amount of payment shall be applied according to state regulations on short-term foreign travel expenses for officers and public servants from public service providers and guaranteed by state budget.

h) Expenditures on training officers: to be applied within the plan of training officers approved by Board of Directors of Deposit Insurance of Vietnam.  Content and amount of payment shall be applied according to state regulations on management and use of expenses for training officers and public servants;  

i) Expenditures on scientific research:  to be applied within the plan of scientific research approved by the Board of Directors of Deposit Insurance of Vietnam.  Content and amount of payment: to be applied according to state regulations with respect of scientific and technological topic and project using state budget;

k) Expenditures on employment of domestic and foreign specialists: to be applied within the five-year plan approved by Board of Directors of Deposit Insurance of Vietnam;

l) Expenditures on investigation, inspection and auditing;

m) Expenditures on fines for violations of business contracts caused by objective events.

n) Expenditures on rewards for initiative in improving and increasing labor productivity, rewards for practice of material and expense thrift.  Amount of reward decided by the General Director shall be based on levels of productivity from mentioned above jobs but not higher than the amount saved by those jobs in a year.  Deposit Insurance of Vietnam must promulgate regulations on commendation and take legal responsibility for efficiency and soundness of the regulations;

o) Expenditures on environmental protection tasks;

p) Expenditures on court proceedings (if any);

q) Expenditures for other management tasks as regulated.

1.9. Expenditures on loan loss reserves in accordance with law on enterprises.

1.10. Expenditures on assets:

a) Fixed asset depreciation:  Based on the provisions of law on management, use and deduction of fixed asset depreciation with respect to enterprises, Board of Directors of Deposit Insurance of Vietnam shall define specifically rate of deduction for each type of asset in the internal financial statute in accordance with particular operation;

b) Expenditures on purchase of asset insurance;

c) Expenditures on purchase of labor means;

d) Expenditures on maintenance and repair of assets:  Maximum annual payment should not exceed 5% of fixed assets value on average;

dd) Expenditures on lease of assets under the contract of asset lease signed between the lessor and Deposit Insurance of Vietnam.  In case payment for lease of assets is made once for multiple years, the rental shall be gradually allocated to the expenditures according to the number of years of use of the assets;

e) Expenditures on liquidation, sale and assignment of asset (including remaining value of assets and costs for liquidation and assignment);

g) The loss of assets that is not reimbursed by the prescribed sources.

1.11. Other expenditures:  

a) Expenditures on activities of Communist Party and associations in case their budgets are not sufficient to cover activities according to regulated regime;

b) Expenditures for fire and explosion prevention, national defense and security;

c) Taxes, charges;  

d) Membership fees imposed by Vietnamese and foreign trade associations of which Deposit Insurance of Vietnam is a member;

dd) Board of Directors of Deposit Insurance of Vietnam shall decide and take responsibility for the reasonable expenses that are necessary for its operation and not mentioned in this Circular.

2. Rules for accounting of expenditures

2.1. Expenditures of Deposit Insurance of Vietnam are expenses paid for operation of Deposit Insurance of Vietnam, consistent with rules of conformity between income and expenditures with sufficient documentary evidence in accordance with regulations of law and specified in annual financial plans of the State Bank of Vietnam. The expenditures shall be determined in accordance with accounting standards, law on corporate income tax and relevant law provisions.

2.2. Amounts of deposit insurance not allowed being included in expenditures:

a) Fines for violations against law by individuals as prescribed by law;

b) Expenditures not related to the operation of Deposit Insurance of Vietnam and not attached with eligible invoices or documents;

c) Expenditures covered by other sources;

d) Other expenditures as inappropriate.

Chapter IV

DIFFERENCES BETWEEN RECEIPTS AND EXPENDITURES AND SETTING UP OF FUNDS

Article 20. Differences between receipts and expenditures

Differences between financial receipts and expenditures made in a year are the results from the performance of Deposit Insurance of Vietnam and determined by gross revenue minus the total appropriate payment generated in a year.

Article 21. Handling of annual outstanding balance

Differences between receipts and expenditures of Deposit Insurance of Vietnam are distributed as follows:

1. Make up for differences in previous years due to receipts being lower than expenditures

2. The remaining considered as 100% shall be handled as follows:

a) A maximum amount of 30% shall be added to the development investment fund of Deposit Insurance of Vietnam.

b) Build-up of the commendation and welfare fund for employees in Deposit Insurance of Vietnam:

- If Deposit Insurance of Vietnam is ranked A, not more than 03 months salary shall be added to the commendation and welfare funds;  

- If Deposit Insurance of Vietnam is ranked B, not more than 03 months salary shall be added to the commendation and welfare funds;  

- If Deposit Insurance of Vietnam is ranked C, not more than 03 months salary shall be added to the commendation and welfare funds;

- If Deposit Insurance of Vietnam is not ranked, the commendation and welfare funds shall not be set up.  

Ratio of distribution to the commendation and welfare funds shall be decided by Board of Directors of Deposit Insurance of Vietnam.  

c) Setting up of commendation fund for the managers:

- If Deposit Insurance of Vietnam is ranked as A, not more than one and a half month’s salary shall be added to the commendation fund for managers of Deposit Insurance of Vietnam;

- If Deposit Insurance of Vietnam is ranked as B, not more than one and a half month’s salary shall be added to the commendation fund for managers of Deposit Insurance of Vietnam;

- If Deposit Insurance of Vietnam is ranked as C or is not ranked, the commendation fund for managers shall not be set up.

d) In a case where the remaining balance after building up development investment fund prescribed in Point a of this Clause is not sufficient to build up commendation fund, welfare fund, commendation fund for managers of Deposit Insurance of Vietnam as prescribed, Deposit Insurance of Vietnam is entitled to deduct an amount from the balance after building up the development investment fund to be added to the commendation fund, welfare fund, commendation fund for managers as prescribed, provided that the deducted amount may not exceed the amount to be added to the development investment fund in the financial year.

dd) The remaining amount shall be added to the technical reserve fund.

3. The performance of Deposit Insurance of Vietnam shall be assessed and ranked as the basis for building up the commendation fund, the welfare fund, and commendation fund for managers in accordance with provisions of law applicable to single-member limited liability companies of which 100% of charter capital shall be held by the State and particular instructions of the State Bank of Vietnam in conformity with the particular operation of Deposit Insurance of Vietnam.

Article 22. Management and using funds set up from balance

1. The funds of Deposit Insurance of Vietnam must be used for proper purposes and eligible entities.

a) Deposit Insurance of Vietnam shall formulate and promulgate regulations on management and use of funds in accordance with regulations of law to be used in Deposit Insurance of Vietnam; regulations on guarantees of democracy and transparency with participation of executive committee of Trade Union of Deposit Insurance of Vietnam and publicity in Deposit Insurance of Vietnam.

b) In a financial year, Deposit Insurance of Vietnam shall, according to its positive balance with respect to the performance outcome, to set up funds for expenditures as prescribed.

2. The development investment funds shall be financed for development investment projects associated with Deposit Insurance of Vietnam and supplement the charter capital of Deposit Insurance of Vietnam under the Prime Minister’s Decision based on the proposal of the Ministry of Finance after State Bank of Vietnam’s opinions are given.

3. The commendation fund shall be used for:

a) Year-end bonuses, periodical bonuses, irregular bonuses, and other bonuses in accordance with regulations of law on commendation for employees at Deposit Insurance of Vietnam. The commendation fund of Deposit Insurance of Vietnam shall be used for the purpose of paying bonuses for managers of Deposit Insurance of Vietnam, controllers appointed by the State (other than bonuses in accordance with law on commendation).

b) Rewards to external individuals and units who make significant contributions to the performance of Deposit Insurance of Vietnam.

c) Amounts of bonuses shall be consistent with regulations on management and use of funds of Deposit Insurance of Vietnam.

4. The welfare fund shall be used for:

a) Construction or repairs of welfare works of Deposit Insurance of Vietnam.

b) Expenditures on welfare activities of employees in Deposit Insurance of Vietnam, including managers of Deposit Insurance of Vietnam, controllers appointed by the State.

c) Construction of other welfare works under agreements concluded with other entities.

d) Support for unexpected financial difficulties of laborers including cases of retirement, disability, homelessness, or for charitable activities.

dd) Amounts of expenditures shall be consistent with regulations on management and use of funds of Deposit Insurance of Vietnam.

5. The commendation fund for managers shall be used for:

a) Annual bonuses; bonuses paid to President and members of the Board of Directors, General Director, Deputy General Director, controllers, Chief accountant of Deposit Insurance of Vietnam upon expiry of their terms of office.

b) Amounts of annual bonuses and bonuses upon expiry of terms of office shall be decided by the State Bank of Vietnam and must be corresponding to the criteria for performance assessment of managers and controllers and performance outcome of Deposit Insurance of Vietnam based on the proposal of President of the Board of Directors.

c) If President and members of the Board of Directors, General Director, Deputy General Director, controllers, and Chief accountant of Deposit Insurance of Vietnam are rewarded in accordance with law on commendation, Deposit Insurance of Vietnam shall use its commendation fund to pay bonuses for the aforesaid entities according to the amounts of bonuses in accordance with law on commendation according to each type of commendation.

Chapter V

ACCOUNTING, STATISTICS, AUDITING REGIME AND FINANCIAL PLANS

Article 23. Accounting, statistics

1. Deposit Insurance of Vietnam shall comply with regulations on accounting and statistics according to the provisions of law and guiding documents of the Ministry of Finance.

2. Financial year of Deposit Insurance of Vietnam starts on January 01 and ends on December 31 according to solar calendar.

Article 24. Financial plan

1. Deposit Insurance of Vietnam shall be responsible for making and submitting to State Bank of Vietnam the draft financial plan (using the form provided in Appendix 1 issued herewith) before March 1 of the planned year.

2. The State bank of Vietnam shall take charge and cooperate with the Ministry of Finance in reviewing the financial plan and set the following targets to be met by Deposit Insurance of Vietnam before April 20 of the planned year:

a) Planned targets:

- Total revenues deducted from total expenditures without wage;

- Expenditures on officers’ overseas business travel expenses;

- Expenditures on scientific research;

- Expenditures on training officers;

- Expenditures on domestic and foreign specialists

During the implementation of the financial plan, in case financial targets assigned by the State Bank of Vietnam are not met, Deposit Insurance of Vietnam must submit a written request for adjustment to the State Bank of Vietnam and the implementation is permitted after a written approval by the State Bank of Vietnam is issued.

b) Targets with respect to performance assessment and ranking of Deposit Insurance of Vietnam. The following targets shall not be adjusted throughout the period in which the financial plan is carried out (except for major force majeure events).

3. According to planned targets set by the State Bank of Vietnam prescribed in Point a Clause 2 of this Article, the President of the Board of Directors of Deposit Insurance of Vietnam shall approve a detailed financial plan for implementation.

Article 25. Reporting regime

Periodically (quarter, yearly), Deposit Insurance of Vietnam shall be responsible for formulating and submitting professional reports, statistical reports, financial statements and other regular, irregular reports according to the regulations of the Ministry of Finance and General Statistics Office.

1. Types of reports:  

a) Statement of accounts (Type III) to be sent monthly;

b) The Balance sheet (Summary of assets);

c) Performance report;

d) Explanation of the financial statement:

- Situations of rise and fall in fixed assets;

- Personnel and their salaries/incomes;

- Rise and fall in sources of capital and use of capital;

- The build-up and use of technical reserve fund.

dd) Annual reports on financial supervision, performance assessment and ranking as prescribed by law.

2. President of the Board of Directors, General Director of Deposit Insurance of Vietnam shall be responsible for accuracy and authentication of these reports.

3. Time limit and place for submission of reports:

a) Monthly reports shall be sent to the State bank of Vietnam within 10 days from the end of the month;

b) Quarterly reports shall be sent to the Ministry of Finance and State Bank of Vietnam within 30 days from the end of the quarter;

c) Annual reports passed by the Board of Directors shall be sent to the Ministry of Finance and State Bank of Vietnam within 90 days at the latest since end of fiscal year.

Article 26. Accounting

1. Deposit Insurance of Vietnam shall carry out internal audit under applicable regulations.

2. Annual financial statements of Deposit Insurance of Vietnam shall be audited by State Audit of Vietnam.  Audit results and reports on audit results shall be sent to the Ministry of Finance and State Bank of Vietnam.

Chapter VI

RESPONSIBILITIES OF MANAGEMENT AGENCIES

Article 27. Responsibilities of the Ministry of Finance

1. Carry out financial investigation under the provisions of the law on financial investigation.

2. Investigate and assess compliance with the financial regulations in order to complete the financial regime of Deposit Insurance of Vietnam.

3. Coordinate with State Bank of Vietnam in handling financial issues of Deposit Insurance of Vietnam.

Article 28. Responsibilities of State bank of Vietnam

1. Execute state management functions for deposit insurance under the provisions of law.

2. Carry out financial supervision of Deposit Insurance of Vietnam and send a plan for financial supervision and financial supervision result report to the Ministry of Finance in accordance with law on state-owned enterprises.

3. Carry out comprehensive investigation, inspection and monitoring of the performance of Deposit Insurance of Vietnam; notify the Ministry of Finance of Deposit Insurance of Vietnam’s financial situations and violations (if any) of the financial regime detected during the investigation, inspection and monitoring, and violation handling measures advanced by Deposit Insurance of Vietnam.

4. Execute functions as representative of state ownership for Deposit Insurance of Vietnam.

a) Make decision and be responsible for its decisions within scope of authority of the state ownership assigned by the Prime Minister under the provisions of law;

b) Proactively coordinate with the Ministry of Finance in making submission to the Prime Minster for consideration and decision about financial issues beyond its authority;

c) Based on the provisions of law and distinctive performance of Deposit Insurance of Vietnam, regulate and instruct performance assessment and enterprise ranking with respect to Deposit Insurance of Vietnam.

d) Proactively coordinate with the Ministry of Finance in making submission to the Prime Minister for decision to change limit of charter capital of Deposit Insurance of Vietnam based on the proposal of the Board of Directors of Deposit Insurance of Vietnam.

dd) Take charge and cooperate with the Ministry of Finance in making submission to the Prime Minister for decision to financial aids for Deposit Insurance of Vietnam in the case where its idle funds are not sufficient to pay insurance payout.

Chapter VII

IMPLEMENTATION

Article 29. Effect

1. This Circular takes effect on January 10, 2017.

2. This Circular replaces Circular No. 41/2014/TT-BTC dated April 8, 2014 of the Ministry of Finance on financial regulations applicable to Deposit Insurance of Vietnam.

3. Based on the regulations set out in this Circular and other relevant provisions, within 120 days since this Circular is promulgated, Board of Directors of Deposit Insurance of Vietnam shall promulgate the statute of internal finance as foundations for implementation.  

4. Any difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance for study, consideration and handling./.

For the Minister

The Deputy Minister

Tran Van Hieu

Deposit Insurance of Vietnam

APPENDIX

FINANCIAL PLAN
(Issued together with Circular No.      /TT-BTC dated …. of the Ministry of Finance)

Unit: VND billion

Notes:Deposit Insurance of Vietnam shall send forms and detailed presentation of grounds for financial plans (including table of accrued interests of government bonds, treasury bills of the State Bank of Vietnam, deposits at the State Bank of Vietnam; plans for labor and wage; plan for overseas business trip; training plans; plans for depreciation of fixed assets, etc.) and proposals of Deposit Insurance of Vietnam.