Circular No.92/2000/TT-BTC of September 14, 2000 guiding the implementation of The Government’s Decree No. 166/1999/ND-CP on the financial regimes applicable to credit institutions đã được thay thế bởi Circular No. 12/2006/TT-BTC of February 21, 2006, guiding the implementation of the Decree No. 146/2005/ND-CP dated 23/11/2005 of the Government on the finance regime applicable to credit institutions và được áp dụng kể từ ngày 28/03/2006.
Nội dung toàn văn Circular No.92/2000/TT-BTC of September 14, 2000 guiding the implementation of The Government’s Decree No. 166/1999/ND-CP on the financial regimes applicable to credit institutions
THE MINISTRY OF FINANCE
SOCIALIST REPUBLIC OF VIET NAM
Hanoi, September 14, 2000
GUIDING THE IMPLEMENTATION OF THE GOVERNMENT’S DECREE No. 166/1999/ND-CP ON THE FINANCIAL REGIMES APPLICABLE TO CREDIT INSTITUTIONS
In furtherance of the Government’s Decree No.166/1999/ND-CP of November 19, 1999 on the financial regimes applicable to credit institutions, the Finance Ministry hereby guides a number of contents on the financial regimes applicable to credit institutions as follows:
1. This Circular shall apply to the credit institutions which are established, organized and operate under the Law on Credit Institutions.
The credit institutions being the policy banks and people’s credit funds shall comply with a separate guiding circular of the Finance Ministry.
2. The financial operations of credit institutions shall comply with the provisions of the Law on Credit Institutions, the Government’s Decree No.166/1999/ND-CP on the financial regimes applicable to credit institutions, the specific guidance in this Circular and other relevant legal documents on financial management.
3. Chairmen of the Managing Boards and general directors (directors) of the credit institutions shall take responsibility before law and the State management bodies for the observance of the financial regimes of the credit institutions.
I. MANAGEMENT AND USE OF CAPITAL, PROPERTY
1. Charter capital is the amount of capital inscribed in the Charter of a credit institution.
2. Net charter capital of a credit institution prescribed in Article 6 of Decree No.166/1999/ND-CP shall be understood as the amount of charter capital reflected on the accounting books of the credit institution.
3. Own capital of a credit institution shall be prescribed by the State Bank Governor.
4. Credit institutions shall have to monitor their entire existing property and capital, effect accounting in strict accordance with the current accounting and statistical regimes; reflect fully, accurately and promptly the situation on the property and capital use and changes in their business course, clearly define the responsibility of each section, each individual for cases of property damage or loss.
5. Credit institutions may use the working capital in service of business activities as provided for by the Law on Credit Institutions on the principle that the capital is safely preserved and developed. Credit institutions may purchase and invest in their fixed assets on the principle that the remaining value of fixed assets shall not exceed 50% of their own capital.
6. All property damage caused to credit institutions must be recorded in minutes defining the extents and causes thereof as well as the responsibility therefor and shall be handled on the following principles:
- If the property damage is caused by collectives or individuals due to subjective reasons, the damage causers shall have to make the compensation therefor according to law provisions. The Managing Boards or the general directors (directors) of the concerned credit institutions shall decide the compensation levels and take responsibility for their decisions.
- The insured property shall be handled according to insurance contracts.
- The deducted expenditure reserves shall be used to offset the deficit as provided for at Point 9, Section I, Chapter II of this Circular.
- The deficit, if any, of the damage value after being recovered and offset with the above sources shall be made up for by the financial reserve funds of the credit institutions.
Where a financial reserve fund is not enough for the offset, the deficit shall be accounted into the expenditures in the period.
7. Lease, mortgage, pledge, sale and liquidation of assets:
7.1. Lease, mortgage, pledge of assets.
- Credit institutions may lease, mortgage and/or pledge assets under their respective management and use rights to raise the utility efficiency and increase incomes but have to strictly adhere to the law-prescribed orders and procedures.
- The assets belonging to the technologies related to the professional operation of the entire system prescribed in Article 13 of Decree No.166/1999/ND-CP are those on list announced by the State Bank. When leasing, mortgaging and/or pledging such assets, credit institutions must obtain written consent from the State Bank.
- For the financial leasing property, credit institutions shall comply with the Governments regulations on financial leasing activities in Vietnam.
7.2. Sale and liquidation of property
- Credit institutions may sell assets which are no longer in use and are technically obsolete in order to recover capital for more efficient business purpose.
- Credit institutions may liquidate assets of poor or degenerated quality, irreparably damaged assets, technically obsolete assets no longer in use or used inefficiently which cannot be sold in status quo.
- The assets belonging to technologies related to the professional operation of the entire system prescribed in Articles 14 and 15 of Decree No.166/1999/ND-CP are assets on the list announced by the State Bank. When selling or liquidating such assets, credit institutions must obtain the written consent from the State Bank.
- When selling or liquidating assets, credit institutions shall have to set up councils for the evaluation of the technical status and value of such assets or hire experts to do such job. For assets which, as required by law, must be put on auction when they are sold out or liquidated, credit organizations must organize their auctions, making public announcements as prescribed by law. If assets are liquidated by mode of dismantlement or destruction, the liquidation councils must be organized by decisions of the general directors (directors) of credit institutions.
- The balance between the proceeds from asset sale or liquidation of the remaining value of the sold or liquidated assets and the sale or liquidation expenses shall be accounted into the business results of the credit institutions.
8. For customers’ assets leased, taken as mortgage, pledge or custody by credit institutions, the credit institutions shall have to manage, preserve or use them under the agreements reached with the customers in accordance with the provisions of law.
9. Ensuring capital safety: Ensuring capital safety is the duty of credit institutions to protect the interests of the State, the shareholders, the units investing capital in the credit institutions as well as the interests of money depositors, create conditions for credit institutions to stably and efficiently develop business, increase income for laborers and fulfill the obligations toward the State budget.
Credit institutions shall apply measures to ensure the capital safety as provided for in Article 9 of Decree No.166/1999/ND-CP of the Government. The deduction for expenditure reserves shall be made by credit institutions according to the following specific regulations:
9.1. Regarding reserves for risks in banking operation, credit institutions shall make deduction and use them according to the regulations of the State Bank Governor.
9.2. Regarding reserves for securities and unsold goods price reduction:
- Objects of reserve making: securities; goods in stock, including supplies, prints, unsold gold, silver and gems being jewelry and fine art articles (if any) being held by credit institutions.
- Reserve-making principle: The deductions for securities and unsold goods price reduction reserves shall be made when the market prices are lower than the values being accounted in the accounting books.
Reserve-making conditions: The deductions for securities and unsold goods price reduction reserves must not result in business losses for credit institutions (after re-crediting the deduction for the previous year’s reserves).
1. Method of making deductions for reserves: Credit institutions shall base themselves on the situation of price reduction, the actual volume of goods in stock and the market prices of securities to determine the reserve level according to the following formula:
The reserve level for securities and unsold goods
The unsold goods and securities subject to price reduction by Decamber 31.
The price of unsold goods or securities, accounted on the accounting books
The actual market selling price by December 31
- The actual market selling price by the time of December 31 is understood as:
+ For unsold goods: The price set by the general directors (directors) of the credit institutions on the basis of the actual selling prices of supplies, goods of the same types on the market or on the basis of the price level set by the State (for supplies and goods with prices set by the State).
+ For securities: The selling price listed at the Securities Trading Centers for securities being traded on the securities market. For unlisted securities, the general directors (directors) of credit institutions shall determine such price based on the actual market selling price of the securities of the same type.
- The deductions for reserves must be made separately for every kind of goods left in stock or securities subject to price reduction and synthesized in the detailed list of reserves for unsold goods and securities price reduction to serve as basis for accounting them into the expenses for the credit institutions’ operation.
- The time for reserve deduction: The reserve deduction for each kind of unsold goods and securities subject to price reduction shall be made by the time of closing accounting books (December 31 of the calendar year) to make the annual financial reports.
- Handling of reserve amounts: The deduction for reserves aims to offset loss amounts due to the reduction of prices of goods in stock or investment securities. As the loss amounts resulting from the reduction or prices of goods in stock or securities are accounted into the business results, the credit institutions shall have to re-credit all reserve amounts into their revenues, concretely: At the end of each year, before closing the accounting books to make their financial reports, the credit institutions shall have to re-credit all the reserves deducted at the end of the previous year into the revenues of the current year in order to determine the business results and at the same time make new reserve deductions for the following year according to the current regulations.
II. MANAGEMENT OF TURNOVER, EXPENDITURE
1. Management of turnover:
1.1. A credit institution’s turnover shall include the revenues prescribed in Article 16 of the Government’s Decree No.166/1999/ND-CP of November 19, 1999 as follows:
a) Revenue from professional operation: Loan and deposit interests, earnings from financial leasing operations, payment services, treasury services, discount operations, guarantee and other services relating to banking operation.
b) Revenue from other activities: Profits from capital contributions, stock purchases; participation in the monetary market; trading in gold, silver and foreign currencies; entrusted agency operations; insurance service; consultancy services; debts buying and selling operations among credit institutions; financial leasing and other services;
c) Revenue from re-crediting expenditure reserves deducted previously; revenue from capital amounts already handled with risk reserves; proceeds from the sale and liquidation of fixed assets; exchange rate difference under the provisions of law.
d) Other revenues
1.2. Principles for determining turnover:
a) Turnover from lending activities, interests on deposits, from financial leasing operations is the interest amount to be collected in the period, determined according to the following principles:
- Credit institutions account the interest amount to be collected from undue debts into their incomes. For the interest amount to be collected from overdue debts which shall not be accounted into the incomes, the credit institutions shall make extra-sheet follow-up in order to urge the collection thereof and account them into the operational incomes when they are collected.
- The interest amounts to be collected from undue loans, which have been already accounted into the incomes but not paid on time by customers, if after 90 days they are not yet paid by customers or before 90 days the loans have been turned into overdue debts, may be accounted as revenue decrease by the credit institutions which shall make extra-sheet follow-up in order to urge the collection thereof and account them into operational incomes when they are collected
b) For the revenues from capital contribution to joint ventures, cooperation, from stock purchases, the arising turnover is the revenue in the year.
c) For the revenues from the other activities: The turnover is the entire amount of money earned from goods and service sale after subtracting (-) the amounts of sale price reduction, the returned sold goods (if accompanied with valid vouchers, which is agreed for payment by customers regardless of whether the money has been already collected or not yet collected.
1.3. Credit institutions may exempt and reduce interests for customers according to the provisions of the Law on Credit Institutions and the guidance of the State Bank. Credit institutions must work out regulations on interest exemption and reduction and publicly announce them to the customers. Chairmen of the Managing Boards and the general directors (directors) of the credit institutions must take responsibility for the interest exemption and reduction amounts of the credit institutions.
1.4. Credit institutions’ revenues arising in the period must be enclosed with valid invoices or vouchers and be accounted fully into their turnover.
2. Management of expenditures: A credit institution’s expenditure is the amount to be spent in the period for business and other activities as provided for in Article 17 of Decree No.166/1999/ND-CP of November 19, 1999 of the Government, a number of expenses to be made by the credit institution under the following guidance:
2.1. Business operation expenses:
a) Expense for payment of deposit interest, loan interest.
b) Fixed asset depreciation expense for business operation according to the current regulations on the management, use and depreciation of fixed assets.
c) Expense for payment of wages and allowances of wage nature according to the provisions of the Government’s Decree No.166/1999/ND-CP of November 19, 1999.
d) Expense for social insurance, medical insurance and trade union fees, calculated on the credit institution’s wage fund and according to the current regulations of the State.
e) Expense for services bought from the outside:
- Expenses for repair of fixed assets hired from the outside, transportation, electricity, water, telephone, materials, prints, stationery, work tools, fire-fighting devices, consultancy, auditing, property insurance premium, commissions for brokerage agency, consignment and other services.
- The above expenses must be evidenced with valid receipts or vouchers as provided for by the Finance Ministry.
- The expense for repair of fixed assets in order to restore their capacities may be accounted directly or distributed gradually into the business expenditure in the year. For particular fixed assets with the expense for their repair arising unevenly between periods and years, if credit institutions wish to incorporate in advance into the business expenditure, they must work out plans for advance deduction of expenses for fixed asset repair and report them to the Finance Ministry for consideration and decision. After obtaining the written approval from the Finance Ministry, the credit institutions shall have to notify such to the tax offices which directly manage them. The credit institutions must settle the actual repair expenses against the repair expenses deducted in advance; if the actual repair expense is larger than the deducted amount, the difference shall be accounted directly or distributed gradually into the expenses in the period; if the actual repair expense is smaller than the deducted amount, the difference shall be accounted into the income in the period.
- Expense for renting property shall be accounted into the business expenditure with the amount of money paid in the year, based on the property renting contracts. Where the property rent is paid in lump sum for many years, the rent shall be distributed gradually into the business expenditure according to the number of years using the property.
- Expenses for payment of agency or consignment commissions must be reflected in the agency or consignment contracts and shall only be accounted according to the spending amounts evidenced with valid vouchers.
- Expenses for brokerage commission:
+ The payment of brokerage commission by credit institutions must be associated with the economic efficiency brought about by the brokerage. The credit institutions shall base themselves on the Finance Ministry’s documents guiding the brokerage commission payment, their own conditions and specific characteristics to work out the regulations on brokerage commission payment for uniform and open application within the credit institutions. The Managing Boards of the credit institutions shall approve the above-said regulations for application within their respective units.
+ Basing themselves on the approved regulations as well as on each specific brokerage work arising in the operation, the general directors (directors) of the credit institutions shall decide the payment of commission for each brokerage activity.
+ The brokerage commission payees are organizations and individuals (domestic and foreign) that act as brokers or provide services for the credit institutions.
+ The brokerage commission shall not be paid to subjects being agents of the credit institutions, designated customers, managerial officials and employees of the credit institutions.
+ The brokerage commission payment must be based on the contracts or written certifications between the credit institutions and the commission recipients, which must contain the principal details: The name of the commission recipient; the spending content; the expense level; mode of payment; the time for performance and termination; liabilities of the parties.
+ With regard to the expense for property sublease brokerage commission (including property seized as guarantee for debt payment, debt- offsetting property): The level of expense for property sublease brokerage of a credit institution shall not exceed 3% of the money amount earned from the property lease in the year.
+ With regard to the expense for mortgaged, pledged property sale brokerage: The level of commission expense for the mortgaged, pledged property sale brokerage of a credit institution shall not exceed 1% of the actual value of the proceed from the sale of the property through brokerage, the brokerage expense for the sale of a property shall not exceed VND 20 million.
f) The expenses for payable taxes, charges and land rental related to business operation (excluding the enterprise income tax), including trade license tax, land use levy or lend rent, natural resource tax, bridge and ferry toll, airport fee, other taxes and fees.
g) Other expenses
- Expenses for advertisements, marketing, sale promotion, guest reception, festive occasions, public relations, conferences and other expenses must be evidenced with receipts or vouchers as provided for by the Finance Ministry, be closely associated with the business results. The expense level shall not exceed 7% of the total expenditure in the first two years for newly established credit institutions, and shall not exceed 5% of the total expenditure afterwards.
- Expense for labor protection for subjects who need labor safety devices while working and expense for uniforms of personnel working in the credit institutions as prescribed.
- Payment of severance allowances to laborers under the Government’s Decree No.198/CP of December 31, 1995 detailing and guiding the implementation of a number of articles of the Labor Code on labor contracts and other current legal documents of the State.
- Payment to female laborers according to the prescribed regimes.
- Expense for mid-shift meals for laborers, which shall be prescribed by the credit institutions suited to their business efficiency, but the annual expense level in the year for each person shall not exceed the minimum wage level prescribed by the State for State employees.
- Payment of membership fees to domestic professional associations which the credit institutions have joined, which have been set by the associations and approved by the Finance Ministry. For the participation in foreign professional associations, the credit institutions may account into their expenditures the membership fees prescribed by foreign professional associations.
- Deduction for setting up reserves in the operations of credit institutions as provided for in Article 9, Section I, Chapter II of this circular.
- Expense for participation in the deposit insurance organizations under the provisions of law.
- Credit institutions may spend on rewarding inventions and innovations, the saving of materials according to the actual efficiency brought about by the inventions, innovations or materials savings. The Managing Boards of credit institutions must draw up and publicize regulations on rewards within the credit institutions.
- Credit institutions are entitled to account expenses for scientific research and technological renewal research, which aim to raise their business efficiency. The research topics and expenditure estimate for each of them must be approved by the Managing Boards and the credit institutions shall bear responsibility for the efficiency of their own topics.
- The expenses for schools, classes, training and fostering to raise the professional skills and managerial capabilities shall only be accounted into the expenses for subjects being officials and employees of the credit institutions. The credit institutions may account into their expenditures the difference after subtracting the amounts of financial support from the State budget (if any). The maximum expense level shall not exceed 1.3 times the public-service expense limit prescribed for the above subjects by the State.
- Financial support for educational organizations set up under the State’s regulations (if any) such as educational promotion funds, schools for disabled children or abandoned pupils: The general directors (directors) of credit institutions shall base themselves on the prescribed regimes and financial capabilities to decide the support levels and take responsibility therefor.
- Expense for security of the offices
- Expense for warehouse operations.
- Expense for environmental protection. If the expense amount in the year is large and exerts effect for many years, it shall be distributed to the subsequent years.
- Expense for payment of fine due to breach of economic contracts.
2.2. Expense for other activities
a) Expense for activities of trading in foreign currencies, gold and silver.
b) Expense for activities of purchasing and selling shares, bonds, credit bills.
c) Expense for property leasing activities.
d) Expense for sale and liquidation of fixed assets (including the remaining value of the fixed assets after the liquidation and sale).
e) Expense for activities of joint venture, partnership, capital contribution, stock purchase.
f) Expense for debt buying and selling operation among credit institutions.
g) Expense for recovery of already forgiven debts, the recovery of bad debts.
- Credit institutions are entitled to pay the organizations with legal person status which have contributed to the recovery of forgiven debts and/or bad debts for them, based on the latters contributed efforts and efficiency brought about by such organizations.
- Credit institutions work out regulations on expenses for recovery of forgiven debts, overdue bad debts and submit them to the Managing Boards for approval then publicize these regulations. The general directors (directors) of the credit institutions shall be responsible for such expenses.
- The expense level for organizations with legal person status, which have contributed to the recovery of forgiven debts and/or overdue bad debts in the year for the credit institutions shall not exceed 2% of the recovered debt amounts. The maximum level of expense for the recovery of a debt shall not exceed VND 50 million.
h) The remaining property loss after they are offset with the sources prescribed in Article 6, Section I, Chapter II of this Circular.
i) Expense for the Party organizations and mass organizations in the credit institutions shall be taken from the funding sources of such organizations; if their funding sources are not enough, the deficit shall be accounted into the expenditures of the credit institutions.
k) Other reasonable and valid expenses.
Particularly for branches of foreign banks, they may account them into the business management expenditures allocated by their head offices to the Vietnam-based branches according to the ratio between the turnover of the Vietnam-based branches and the turnover of the head offices as provided for by law.
2.3. Credit institutions are not allowed to account into their expenditures the following:
- Amounts of fine due to the violations of such laws as traffic law, tax laws, environment law, labor law, the violations of regimes on reporting and statistics, financial accounting and other legislation. If the violations were committed by collectives or individuals, the violating subjects shall have to pay the fines. Besides the above-said compensations, the remaining amounts of fine shall be taken from after-tax profit.
- Expense for investment in capital construction, the procurement of tangible and intangible fixed assets, financial support for organizations and individuals.
- Expense for overseas working trips in excess of the limits prescribed by the State for State employees and officials of State enterprises when traveling overseas on working missions.
- Expenses covered by other funding sources such as public-service expenses provided by the State budget, the superior bodies or other organizations; payment of loan capital for investment in capital construction in the period when the project is not yet completed; such interest amounts shall be accounted into the expense for investment in capital construction.
- Other unreasonable expenses.
3. Credit institutions with economic activities arising in foreign currencies shall have to convert such foreign currencies into Vietnam dong under the guidance of the Finance Ministry.
III. PROFIT DISTRIBUTION AND DEDUCTION FOR SETTING UP FUNDS
The distribution of profits, the deduction for setting up funds and the use thereof, by credit institutions shall comply with the provisions in Articles 21, 22, 23 and 24 of the Government’s Decree No.166/1999/ND-CP of November 19, 1999.
IV. THE REGIMES OF ACCOUNTING, STATISTICS, AUDITING, REPORTING AND FINANCIAL PUBLICITY
1. Credit institutions effect the accounting and statistical regimes as prescribed by law, making full entries of initial vouchers, updating accounting books and reflecting fully, promptly, truthfully, accurately and objectively the economic and financial activities.
2. The fiscal year of the credit institutions commences on January 1st and ends on December 31st of the calendar year.
3. Credit institutions make the financial settlements and strictly abide by the regulations on making and sending financial reports to the State financial bodies, statistical bodies, tax offices and the State Bank according to the provisions of the legislation on accounting, statistics and the provisions of this Circular.
3.1. Contents of a financial report
a) Reporting on the financial plan. Credit institutions draw up annual financial plans, including:
- The plan on capital sources and use.
- The plan for revenue, expenditure, business results and quota of remittance into the State budget.
- The plan for labor and wages.
b) The financial reports: Credit institutions shall have to draw up and fully send the following financial reports:
- The balance sheet of grade III accounts of the credit institutions, including extra-sheet accounts.
- The asset statement (the financial balance sheet) of the credit institutions.
- The explanation of the financial report with a number of contents:
+ The situation of fixed asset increase and decrease;
+ The business results, the situation of State budget collection and remittance;
+ The labor and wage situation of the credit institution;
+ The situation of capital increase, decrease, change and use;
+ The situation of overdue debts, bad debts, irrecoverable debts, the situation of existing mortgaged assets;
- The report on independent financial auditing.
3.2. The chairmen of the Managing Boards and the general directors (directors) of the credit institutions shall take responsibility for the accuracy and truthfulness of these reports.
3.3. Deadlines for sending financial reports
a) Deadline for sending the financial plans:
The financial plans worked out by the credit institutions must be examined and approved by the Managing Boards and sent to the financial bodies before November 15 of the year preceding the plan year. Besides, the State-run credit institutions shall work out the plans on wage unit price, on State budget collection and remittance according to the provisions of the State Budget Law and other law provisions.
b) Deadlines for sending the financial reports, auditing result reports
- The quarterly report shall be sent within 45 days at most after the end of the quarter.
- The annual report shall be sent within 60 days at most after the end of the fiscal year.
- The report on the results of auditing the financial report of the credit institution by an independent auditing organization shall be sent to the State financial body and the State Bank within 15 days at most after the auditing results are available.
3.4. Recipients of reports
Credit institutions shall forward their financial plans, financial reports to the Finance Ministry, the tax offices that directly manage them, the statistical offices and the State Bank.
4. Financial publicity by credit institutions. The credit institutions shall effect the financial publicity regime according to the following regulations:
4.1. Form of publicity
a) Publicity to the State:
Quarterly and annually, the credit institutions shall have to make and send the financial reports to the State management bodies defined at Point 3, Section IV, Chapter II above. The Managing Boards and the general directors (directors) of the credit institutions shall have to explain the relevant financial matters at the requests of the State management bodies when the latter perform the State management functions as stipulated by the Government.
b) Publicity to the Party organizations, mass organizations and the laborers in the credit institutions
- At the end of the fiscal year, the Managing Boards or the general directors (directors) of the credit institutions shall have to make public the financial situation of their units. The publicity contents shall include:
+ The capital source situation: State capital, capital of shareholders, funds, mobilized capital, payable debts….
+ The capital use situation: Fixed assets, loan debit balance…
+ The revenue and expenditure situation: Turnovers, expenses for business activities, business results, State budget collection and remittance, payment of social insurance premiums, medical insurance premiums, trade union fees.
+ The situation on labor and income of officials and employees in the credit institutions, the application of measures to practice thrift, combat wastefulness and corruption in the credit institutions.
- The Managing Boards, the general directors (directors) shall coordinate with the trade union organizations to opt for form of publicity suitable to each subject receiving the information; the financial publicity may be effected at the employees’ congress, in meetings of the credit institutions, at meeting of trade union organizations and socio-political organizations in the credit institutions or through written notices to officials and employees in the credit institutions.
c) Publicity outside the credit institutions so that investors and customers have foundations to decide on economic relations and transactions with the credit institutions.
The contents need to be made public shall include the charter capital actually available at the time of publicity, payable debts, structure of capital sources and the use of capital, business results of the credit institutions. Besides, the credit institutions shall have to satisfy the other requirements depending on their ties with creditors, investors and customers.
4.2. The time for making financial publicity: 120 days after the end of the year the credit institutions have to make public their own financial situation to the above-said subjects.
5. Auditing work:
The credit institutions shall have to organize internal auditing of their financial reports in accordance with the provisions of the Law on Credit Institutions.
Within 30 days at most before the end of the fiscal year, the credit institutions shall have to choose an independent auditing organization operating lawfully in Vietnam to audit the financial reports.
V. EXAMINATION, FINANCIAL INSPECTION AND HANDLING OF VIOLATIONS COMMITTED BY CREDIT INSTITUTIONS
1. Credit institutions shall take self-responsibility for the accuracy and truthfulness of their financial reports. The financial bodies shall have to inspect the observance of the financial regimes by the credit institutions. The financial inspection shall be conducted in the following forms:
- Periodical or unexpected financial inspection.
- Specialized topic inspection according to the requirement of the financial management work.
2. Handling of violations:
- Credit institutions violating the financial regimes of the State shall be sanctioned according to the provisions of law.
- Where a credit institution fails to comply or have complied not fully with the regulations on financial report regime mentioned at Point 3, Section IV, Chapter II of this circular, it shall be sanctioned according to the provisions of the Government’s Decree No.49/1999/ND-CP of July 8, 1999 on administrative sanctions in the field of accounting.
ORGANIZATION OF IMPLEMENTATION
- This Circular takes effect 15 days after its signing. The previous regulations on financial management applicable to credit institutions, which are contrary to this Circular, shall all be annulled.
- Basing themselves on the guidance on the financial regimes applicable to the credit institutions in this circular, the legal documents on the State’s financial regimes, the credit institutions shall draw up their own financial regulations and submit them to their Managing Boards for approval, which shall serve as basis for implementation. The State-run credit institutions (State-run commercial banks) shall guide and draw up financial regulations within the system, report them to the Finance Ministry for approval before their implementation.
- Any problems arising in the course of implementation should be reported to the Finance Ministry for study, consideration and settlement.
FOR THE FINANCE MINISTER
NOTES TO THE
(issued in conjunction with Circular No. --------------date------of the Ministry of Finance)
I. CHARACTERISTICS OF CREDIT INSTITUTION ACTIVITY
1. Lisience of Establishment and Business Registration, term of validity.
2. Type of capital ownership.
3. Member of the Board of Director (Name, position of each person)
4. Member of the Management (Name, position of each person)
5. Head office at-----; number of branches, number of subsidiaries:--------
6. Total of officers, workers.
II. PERFORMANCE OF CREDIT INSTITUTION OPERATION (UNIT: VND MILLION)
1. Increase, decrease of fixed assets
Building, architectural part
Means of transport
1. Original cost of fixed assets
- Increase in the period
- Decrease in period
- Closing balance
2. Accumulated depreciation
- Opening balance
- Increase in the period
- Decrease in the period
- Closing balance
3. Residual value
- Opening balance
- Closing balance
2. Report on income, expenditure of credit institutions
Change in the period
I. Income from credit activities
1. Income from lending interest
2. Income from guarantee operation
3. Other income from credit activities
II. Income from payment and treasury service
1. Income from deposit interest
2. Income from payment service
3. Income from treasury service
III. Income from other activities
1. Income from capital contribution, shares acquisition.
2. Income from activities in the money market
3. Income from foreign currency business
4. Income from trust and agent activities
5. Income from other activities
6. Income from other sources.
I. Expenditure on funds mobilisation
1. Payment of deposit interests
2. Payment of lending interests
3. Payment of interests of issued valuable paper.
4. Other expenditure
II. Expenditure on payment and treasury service
1. Expenditure on payment service
2. Payment of telecommunication fee
3. Expenditure on treasury service
4. Expenditure on other service
III. Other expenditure
1. Expenditure on the money market participation
2. Expenditure on foreign currency business
IV. Expenditure on assets
1. Depreciation of fixed assets
2. Maintenance and repair of assets
3. Working tools
4. Payment of asset insurance
5. Payment of asset lease fee
V. Expenditure on employment
1. Expenditure on salary and salary allowances
2. Other expenditure
VI. Payment of taxes and fees
1. Payment of taxes
2. Payment of fees
VII. Expenditure on management and administrative activities
1. Payment of material and printing paper
2. Business travel expense
3. Expenditure on training
4. Expenditure on R/D of technology, innovation
5. Expenditure on post and telephone
6. Expenditure on commission fee for assets re-lease, disposal of pledged assets, debt recovery.
7. Expenditure on advertisement, marketing, promotion, public relation, meeting and other.
VIII. Expenditure for provision and deposit insurance
1. Expenditure for provision
2. Expenditure for deposit insurance
IX. Other expenditure
3. Staff income
Actual performance to plan (in percentage)
I. Total number of officers, workers
II. Staff income
1. Total salary fund
3. Total income (1+2)
4. Average salary
5. Average income
To be reported by credit institutions on the annual basis.
4. Performance of obligations to the State Budget
Amounts payable at the beginning of the period
Change in the period
Accumulated from beginning of the year
Amounts payable at the ending of the period
Amount to be paid
Amounts to be paid
2. Excise tax
4. Income tax
5. Tax on the use of the State Budget capital
6. Natural resource taxes (royalty)
7. land and housing taxes
8. Land rental
9. Other taxes
1. Supplemental contribution
3. Other obligations
To be prepare by credit institutions in accordance with current guidelines of the Ministry of Finance and the Tax authority.
5. Overdue debts of credit institutions
Change in the period
I. Total outstanding debts
II. Overdue debts
1. Overdue debt under 180 days
2. Overdue debt from 181 days to 360 days
3. Debt difficult to recover
III. Overdue debts with secured assets
IV. Overdue debt ratio
6. Increase, decrease of the source of funds and the use of funds
Change in the period
Section A. source of funds
I. Funds Mobilisation
1.1 In VND
a) Economic organisations
+ Demand deposits
+ Time deposits with term under 12 months
+ Time deposit with term from 12 months onwards.
+ Non-term savings
+ Savings with term under 12 months
+ Savings with term from 12 months onwards.
c) Other deposit
1.2. In foreign currency
a. Economic organisations
+ Demand deposits
+ Time deposits with term under 12 months
+ Time deposits with term from 12 months onwards.
b) Savings deposit
+ Non-term saving
+ Savings with term under 12 months
+ Savings with term from 12 months onwards.
c) Other deposits
2.1. Borrowing from the State Bank
2.2. Borrowing from domestic credit institutions
2.3. Borrowing from foreign credit institutions
2.4. Funds received for co-financing
3. Bills, bonds issued
3.1. Short-term (under 12 months)
3.2. Medium, long-term (over 12 months)
II. Funds entrusted for investments
1. In VND
2. In foreign currency
III. Capital and Funds
1. Capital of credit institution
1.1. Charter capital
1.2.Funds for investment in infrastructure
1.3. Other capital
2. Funds of credit institution
2.1. Reserve fund for supplementing to the charter capital
2.2. Business development fund
2.3. Finance reserved fund
2.4. Other funds
Section B. Use of funds
I. Cash and valuable papers
1. Cash and State Bank Payment Notes
2. Cash in foreign currency, valuable paper documents denominated in foreign currency.
3. Gold, precious metal, stones
1. Deposits at the State Bank
1.1. Deposits in VND
1.2. Deposits in foreign currency
2. Deposits at domestic credit institutions
2.1. Deposits in VND
2.2. Deposits in foreign currency
3. Deposits in foreign country
III. Investment in securities
1. Investment in Government securities
2. Investment in foreign securities
3. Investment in other domestic credit institutions securities
IV. Joint-venture participation
1. In VND
2. In foreign currency
V. Credit activities
1. Lending to domestic credit institutions
1.1. Lending in VND
1.2. Lending in foreign currency
2. Lending to domestic economic-industries organisations
2.1. Lending in VND
a) Short-term lending
b) Medium, long - term lending
2.2. Lending in foreign currency
a) Short-term lending
b) Medium, long - term lending
3. Discount operation, mortgage of valuable papers
3.1. Discount of valuable papers
3.2. Mortgage of valuable papers
4. Finance leasing
4.1. Leasing in VND
4.2. Leasing in foreign currency
4.3. Investment in equipment used for finance leasing
5.1. Payment in lieu of customers in VND
5.2. Payment in lieu of customers in foreign currency
6. Lending with funds entrusted.
6.1. In VND
6.2. In foreign currency
7. Hire purchase
8. Other lending
8.1. Lending with special funds
8.2. Lending for debts settlement
8.3. Lending for State plan purposes
8.4. Other lending
9. Debts pending settlement
10. Debts frozen
VI. Fixed assets
Original cost of assets
2. Depreciation of assets
GENERAL DIRECTOR (DIRECTOR)
 / This is the word by word translation from the Vietnamese version. It seems controversy since the “compensation” is not mentioned anywhere in this paragraph. The payment of the fine by the collective or an individual may, therefore, be understood as “compensation”?