5 Types of capital managed and used by the State Bank of Vietnam from March 28

21:43, 09/07/2024

On January 10, 2006, the Government of Vietnam issued Decree 07/2006/ND-CP regarding the financial policies of the State Bank of Vietnam (excluding public service providers funded by the state budget and enterprises operating independently under the SBV).

vốn Ngân hàng Nhà nước quản lý và sử dụng, Nghị định 07/2006/NĐ-CP

5 Types of capital managed and used by the State Bank of Vietnam from March 28 (Illustrative image)

According to Article 7 of Decree 07/2006/ND-CP, the State Bank of Vietnam manages and uses the following types of capital:

1. Legal capital.

2. Money issued into circulation to implement the national monetary policy.

3. Deposits from credit institutions and the State Treasury.

4. Borrowed capital.

5. Other capitals.

Additionally, this Decree prescribes that the minimum regulatory capital of the State Bank of Vietnam is 5,000 billion VND (five thousand billion VND). Any change in this regulatory capital level is decided by the Prime Minister of the Government of Vietnam based on the proposal of the Governor of the State Bank and the Minister of Finance of Vietnam. Simultaneously, the regulatory capital of the State Bank of Vietnam is formed from the following sources:

- Current capital sources: state budget funds already allocated and capital for building basic infrastructure and acquiring fixed assets.

- Supplementary sources:

- State budget funds allocated (if any).

- Costs deducted at 12% on the average annual value of fixed assets as per regulations.

- Increases due to revaluation of fixed assets in accordance with legal regulations.

- Other sources (if any).

More details can be found in Decree 07/2006/ND-CP which comes into force in Vietnam from March 28, 2006.

Ty Na

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