Vietnam: Costs of branches of foreign banks and credit institutions

According to Decree No. 93/2017/NĐ-CP of Vietnam’s Government, costs of branches of foreign banks and credit institutions include:

- Interest cost and its equivalents: costs on interest on deposits, interest on loans, interest from issuance of valuable papers and other costs from credit activities;

- Costs of service activities: Costs of payment services; costs of treasury services; costs of telecommunication services; costs of entrustment services; costs of consulting services; costs of commissions for agents, brokers, entrustment to authorized agency, brokerage and commissioning activities permitted by law.

- Costs for trading foreign currency and gold: Cost for foreign currency trading; cost for foreign exchange differences; cost for gold trading; cost for currency derivatives;

- Costs for trading of securities permitted to trade as prescribed in the Law on credit institutions;

- Costs for capital contribution, transfer of stake and shares;

- Costs for other activities: Cost for interest rate swap transactions; cost for debt trading; costs related to financial leasing; cost for other derivative financial instruments; cost for other business activities;

- Costs for taxes, fees and charges;

- etc.

Credit institutions and branches of foreign banks shall not record costs covered by other funding sources. The determination and accounting of costs shall be made in accordance with accounting standards and relevant law provisions.

View more details at Decree No. 93/2017/NĐ-CP of Vietnam’s Government, effective from September 25, 2017.

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