To increase charter capital of Vietnam Deposit Insurance on November 20, 2023

To increase charter capital of Vietnam Deposit Insurance on November 20, 2023

Specifically, from November 20, 2023, the Prime Minister decided to increase the charter capital of Vietnam Deposit Insurance from 5,000,000,000,000 VND (according to Decision 1394/QD-TTg and Decision 1395/QD-TTg) to 5,281,018,572,109 VND.

Ministers, Heads of ministerial-level agencies, Heads of Government agencies, Chairmen of People's Committees of provinces and centrally run cities, and the Chairman of the Board of Directors of Vietnam Deposit Insurance are responsible for implementing Decision 1434/QD-TTg.

Location, functions, and operational purposes of Vietnam Deposit Insurance

Specifically, Decision 1394/QD-TTg and Decision 1395/QD-TTg stipulate the position, functions, and operational purposes of Vietnam Deposit Insurance as follows:

(1) Regarding location and function

- Vietnam Deposit Insurance is a state-owned financial institution operating for non-profit purposes, aiming to protect the legal rights and interests of depositors and implement deposit insurance policies, contributing to maintaining the stability of the system and ensuring the safe and healthy development of banking activities.

- Vietnam Deposit Insurance operates to ensure capital safety and self-cover costs. Vietnam Deposit Insurance has legal status, independent accounting, and a separate seal and account according to the provisions of the law.

- Vietnam deposit insurance is exempt from paying taxes according to the provisions of the law.

The financial regime of Vietnam Deposit Insurance is presided over by the Ministry of Finance and regulated by the State Bank of Vietnam.

(2) Operational objectives

Vietnam Deposit Insurance operates not for profit, implementing deposit insurance policies, ensuring capital safety and self-covering costs, protecting the legitimate rights and interests of depositors, contributing to the stability of credit institutions, and ensuring the safe and healthy development of banking activities.

Decision 1434/QD-TTg 2023 takes effect on November 20, 2023.

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