Annual Contribution Fee to the Credit Union Deposit Insurance Fund: 0.08% of the Average Outstanding Loan Balance of the Previous Year

Accordingly, Circular 06 stipulates the payment to the Preservation Fund as follows:

- The annual payment rate is 0.08% of the average outstanding loan balance of the year immediately preceding the end date of December 31 for cooperative banks and people's credit funds.

- The average annual outstanding loan balance is calculated by dividing the total outstanding loan amounts (group 1 and group 2 according to the debt classification regulations of the State Bank of Vietnam) at the end of each month by the actual number of months to be calculated. For cooperative banks, the outstanding loan amounts at the end of each month are excluded from the balance of capital harmonization loans to the member people's credit funds;

- The payment to the Preservation Fund for the fiscal year is only made when the total operating capital of the Preservation Fund before payment is less than 1.5% of the total assets of the people's credit fund system.

- In the event that after the payment to the Preservation Fund for the fiscal year the total operating capital of the Preservation Fund is higher than or equal to 1.5% of the total assets of the people's credit fund system, the Cooperative Bank and People's Credit Fund still make the payment to the Preservation Fund for that fiscal year;

- Additionally, Circular 06 stipulates that the amount paid to the Preservation Fund is accounted for as operating expenses of the cooperative banks and people's credit funds.

See details Circular 06/2017/TT-NHNN effective from September 1, 2017.

-Thao Uyen-

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