What are regulations on actual value of charter capital/assigned capital in Vietnam?
What are regulations on actual value of charter capital/assigned capital in Vietnam?
Hello Lawnet. I'm learning regulations on limits and prudential ratios regarding banking sector. I have a following question. What are regulations on actual value of charter capital/assigned capital in Vietnam?
Thank you!
What are regulations on actual value of charter capital/assigned capital in Vietnam?
Pursuant to Article 6 of the Circular 22/2019/NHNN (takes effect from 01/01/2020) stipulating actual value of charter capital/assigned capital in Vietnam as follows:
1. Actual value of charter capital/assigned capital of a bank or FBB is the remaining value of the charter capital/assigned capital determined according to Clause 2 and Clause 3 of this Article.
2. Determination of actual value of charter capital/assigned capital:
A bank or FBB shall determine the remaining value of charter capital/assigned capital when:
a) Provisions for losses are sufficient as prescribed by law;
b) Revenues and expenses are fully accounted for to determine business performance.
3. Calculation of actual value of charter capital/assigned capital:
Actual value of charter capital/assigned capital equals (=) the charter capital/assigned capital plus (+) share premium ± undistributed cumulative profit on accounting book.
4. A bank or FBB shall regularly monitor and assess the actual value of its charter capital/assigned capital and submit reports to SBV in accordance with Point a and Point b Clause 6 Article 4 of this Circular. To be specific:
a) If the fiscal year of the bank or FBB ends on December 31:
The report on actual value of charter capital/assigned capital at the end of June 30 and December 31 shall be submitted by July 15 and January 15 respectively;
b) If the fiscal year of the bank or FBB does not end on December 31:
The report on actual value of charter capital/assigned capital at the end of the last day of the previous quarter shall be submitted by the 15th of the first months of the first quarter and the third quarter;
c) In case the actual value of charter capital/assigned capital mentioned in Point a and Point b of this Clause does not include adjustments by independent auditors (if any), they may be added to the next financial statement.
Best regards!
