What are regulations on mobilized capital and equity of Vietnam Development Bank (VDB)?

What are regulations on mobilized capital and equity of VDB?

Pursuant to Article 3 of the Circular 128/2021/TT-BTC stipulating mobilized capital and equity of VDB as follows:

1. VDB may mobilize capital from the sources prescribed in Clause 2 Article 6 of the Decree No. 46/2021/ND-CP but must abide by the following rules:

a) Limits and prudential ratios must be maintained by VDB in accordance with guidelines given by the State Bank of Vietnam (SBV);

b) In case VDB raises funds by issuing Government-guaranteed bonds, it must ensure the guarantee limit decided by the Prime Minister and apply the interest rate which must fall within the bracket of interest rates announced by the Ministry of Finance;

c) In case VDB raises funds by getting loans from domestic credit institutions and in the forms of deposits and/or loans from other domestic organizations: VDB shall raise funds in accordance with regulations of laws and apply the interest rate which does not exceed the highest rate of the interest rates for deposit accounts of the same or equivalent term (in case deposit accounts of the same term are not available) published at the same time on the official websites or in written notices of interest rates of the following four banks, including: Agribank, BIDV, Vietcombank and Vietinbank;

d) In case VDB gets loans from SBV, the lending interest rate shall comply with SBV’s regulations;

dd) Mobilization of capital from other sources shall comply with in accordance with regulations of law and VDB shall assume responsibility for its decision.

2. VDB's equity shall be defined in accordance with Article 7 and Clause 1 Article 40 of the Decree No. 46/2021/ND-CP. The credit limit applied in the next quarter shall be determined according to the separate financial statements of the previous quarter.

What are rules for capital and asset management of VDB? 

Pursuant to Article 4 of the Circular 128/2021/TT-BTC stipulating rules for capital and asset management of VDB as follows:

1. VDB shall monitor all of its existing capital and assets, do bookkeeping and sufficiently, accurately, truthfully and promptly reflect the use and changes in its capital and assets in the course of its operation in accordance with regulations on accounting and statistics in force; clearly assign responsibilities of each department or individual in case of damage to or loss of assets; comply with regulations on preservation of working capital and asset management set out in the Decree No. 46/2021/ND-CP.

2. VDB is entitled to use capital for performing activities prescribed in Clause 1 Article 8 of the Decree No. 46/2021/ND-CP. VDB shall only be allowed to carry out trading, discounting and rediscounting of the following types of financial instruments, including: government bonds, government-guaranteed bonds, municipal bonds, and SBV bills in accordance with regulations of law.

Best regards!