Financial revenues and expenditures of the State Bank of Vietnam

Financial revenues and expenditures of the State Bank of Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Financial revenues and expenditures of the State Bank of Vietnam

1.1. Financial revenues of the State Bank of Vietnam

According to Article 13 of Decree 07/2006/ND-CP, the State Bank of Vietnam has the following revenues:

- Income from deposit, credit extension, and investment activities, including: collection of loan interest, deposit interest, securities investment, and other credit activities.

- Earnings from open market operations.

- Earnings from buying, selling, and trading foreign exchange (foreign currency and gold).

- Collection of payments, information, and treasury services.

- Collect fees and charges as prescribed by law.

- Other revenues.

1.2. Financial expenditures of the State Bank in Vietnam

Specifically, Article 14 of Decree 07/2006/ND-CP regulates the financial expenditures of the State Bank as follows:

- Expenses for professional activities and banking services:

+ Paying interest on deposits and paying interest on loans; expenses on buying, selling, and trading foreign exchange; spending on open market operations;

+ Expenses for printing, minting, preserving, transporting, forwarding, issuing, withdrawing, replacing, and destroying money; payment and information services.

- Expenses for cadres, civil servants, and contract employees of the State Bank and expenditures on rewards and welfare, including:

+ Paying salaries and allowances according to the regime; spending supplementary income for cadres, civil servants, and employees of the State Bank under the contract mechanism; lunch expenses; transaction fee; spending on labor protection equipment;

+ Periodical and irregular reward and welfare expenditures for officials, civil servants, and employees of the State Bank; the annual expenditure of these two items is equal to the total salary fund implemented in the year;

+ Expenses and rewards for collectives and individuals of industries that have made outstanding contributions to the Bank's operations; the maximum expenditure is equal to 1 month's salary made in the year.

- Contributions according to salary (union funding, social insurance, health insurance, and other contributions according to the prescribed regime), expenditures for collective activities.

- Difficulty allowances and severance allowances as prescribed by law.

- Expenses for management and public service activities, including: expenses for office supplies; postage and communication charges; expenses for electricity, water, health care, and sanitation; spending on petrol; working-trip expenses; expenses for receptions, celebrations, and conferences; expenses for inspection and audit of the State Bank's operations; expenditures on training, professional training, scientific and technological research, initiatives, and improvements; expenditures on documents, books, magazines, libraries, propaganda, advertising, activities, and other public administration.

- Spending on property:

+ Depreciation of fixed assets;

+ Expenses for maintenance and repair of assets; procurement of labor and tools; property rental.

- Deduct 12% of the average value of fixed assets in the year to invest in developing professional techniques and banking technology.

- Expenditures from funding sources allocated by the state budget according to the prescribed regime.

- Expenses for setting up risk provisions according to Article 11 of Decree 07/2006/ND-CP.

- Other expenses as prescribed by law.

2. Position and functions of the State Bank of Vietnam

The State Bank of Vietnam has the following positions and functions:

- The State Bank of Vietnam (below referred to as the State Bank) is a ministerial-level agency of the Government and the central bank of the Socialist Republic of Vietnam.

- The State Bank is a legal entity with its legal capital being under the state ownership and its head office located in Hanoi.

- The State Bank performs the state management of monetary, banking and foreign exchange (below referred to as monetary and banking) operations and performs the function of a central bank in issuing money, a bank of credit institutions and a provider of monetary services for the Government.

(Article 2 of the Law on State Bank of Vietnam 2010)

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