Circular No. 312/2016/TT-BTC: Financial regulations applicable to Deposit Insurance of Vietnam

Circular No. 312/2016/TT-BTC deals with financial regulations with respect to Deposit Insurance of Vietnam, which is established in accordance with the Prime Minister’s Decision No.1394/QĐ-TTg dated August 13, 2013, which includes 07 chapters, 29 articles and 01 Appendix. To be specific:

- Capital and asset management.

- Income and expenses of Deposit Insurance.

- Financial income and expenditure differences and allocation of reserves.

- Accounting, statistics, auditing, and financial planning regulations of Vietnam Deposit Insurance.

Circular No. 312/2016/TT-BTC stipulates the Deposit Insurance of Vietnam as follows:

- Deposit Insurance of Vietnam is a financial institution that is operating in the form of a single-member limited liability company of which 100% charter capital is held by the State, having a legal status, a seal, and an account under Vietnamese law, operating on a not-for-profit basis, and ensuring capital adequacy and self-financed expenses.

- Operation capital of Deposit Insurance of Vietnam consists of charter capital, revenues from deposit insurance premiums, investment in idle funds and other legal sources of revenues.

- Any loss of assets caused to Deposit Insurance of Vietnam must be documented.

If the loss is caused by human errors, the person causing such loss shall pay compensation, which shall be decided by the Board of Directors of Deposit Insurance of Vietnam. Insured assets shall be handled under the contract of insurance. The deficit shall be included in the expenses in the period.

Deposit Insurance of Vietnam shall be responsible for handling losses of assets punctually. With respect to force majeure events that could not be tackled by Deposit Insurance of Vietnam, its Board of Directors shall plan a measure of handling and report to the State Bank of Vietnam who shall then make submission to the Prime Minister for decision.

- Expenses that are recorded as costs must serve the operations of Vietnam Deposit Insurance, have valid invoices and documents, and be included in the financial plan of Deposit Insurance.

- The surplus or deficit of Vietnam Deposit Insurance in one year is used to offset previous years and allocate to the development investment fund, reward fund, and supplementary operational reserve fund.

- The Deposit Insurance must send regular, irregular reports according to the regulations.

Circular No. 312/2016/TT-BTC also specifies that the responsibilities of state management agencies, which are the Ministry of Finance and the State Bank of Vietnam, is to conduct inspections, audits, monitoring, and act as representatives of the owners, etc.

Circular No. 312/2016/TT-BTC of the Ministry of Finance of Vietnam takes effect from January 10, 2017 and replaces Circular No. 41/2014/TT-BTC dated April 08, 2014.

Source: Tap chi Tai chinh

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