Guidelines on the Procedures for Handling Losses Arising from the Operations of the State Bank of Vietnam

Article 11 of Circular 39/2013/TT-NHNN stipulates the sequence for handling losses arising during the operation of the State Bank as follows:

Illustrative image (Source: Internet)

- The head of the unit under the State Bank, where the losses have arisen in operation, directs the relevant departments to explain, clarify, make records, propose handling of losses, and send them to the Finance - Accounting Department.- The Finance - Accounting Department acts as the focal point for receiving dossiers and documents related to the losses sent by units under the State Bank, conducts appraisals, consolidates the original dossiers, and seeks opinions from units with members on the Loss Handling Council as stipulated in Clause 2, Article 12 of this Circular.- The Finance - Accounting Department reviews and submits a written proposal to the Personnel Organization Department to submit to the Governor of the State Bank for the establishment of the Loss Handling Council as stipulated in Article 12 of this Circular.- Based on the dossiers and related documents as stipulated in Article 10 of this Circular, the appraisal opinions of the Finance - Accounting Department, and the input of related units, the Loss Handling Council analyzes, evaluates, proposes a handling plan, and submits it to the Governor for consideration and decision on using the risk provision fund to handle each specific loss.- Based on the Governor's Decision on using the risk provision fund to handle the losses, the Finance - Accounting Department cooperates with the relevant units to implement accounting and manage the losses after handling following the approval as stipulated in Article 14 of this Circular.

See detailed regulations in Circular 39/2013/TT-NHNN effective from June 1, 2014.

Thu Ba

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