Thông tư 20/2020/TT-BTC

CIRCULAR

AMENDMENTS TO CIRCULAR NO. 312/2016/TT-BTC DATED NOVEMBER 24, 2016 OF MINISTRY OF FINANCE PRESCRIBING FINANCIAL REGIME FOR DEPOSIT INSURANCE OF VIETNAM

Pursuant to the Law on credit institutions dated June 16, 2010 and the Law on amendments to the Law on credit institutions dated November 20, 2017;

Pursuant to the Law on Deposit Insurance dated June 18, 2012;

Pursuant to the Law on management and use of state capital invested in manufacturing and business operations of enterprises dated November 26, 2014;

Pursuant to the Government’s Decree No. 68/2013/ND-CP dated June 28, 2013 elaborating and providing guidelines for implementation of the Law on Deposit Insurance;

Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017 defining functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 91/2015/ND-CP dated October 13, 2015 regarding state capital investment in enterprises, use and management of state-owned capital and assets in enterprises and the Government’s Decree No.32/2018/ND-CP dated March 08, 2018 providing amendments to the Government’s Decree No. 91/2015/ND-CP dated October 13, 2015 regarding state capital investment in enterprises, use and management of state-owned capital and assets in enterprises;

Pursuant to the Government’s Decree No. 87/2015/ND-CP dated October 06, 2015 on supervision of state capital investment in enterprises, financial supervision, performance assessment and disclosure of financial information of state-owned and state-invested enterprises;

For implementation of the Decision No.1394/QD-TTg dated August 13, 2013 of the Prime Minister on the establishment of Deposit Insurance of Vietnam (DIV);

For implementation of the Decision No.1395/QD-TTg dated August 13, 2013 of the Prime Minister on approval of the Charter on organization and operation of Deposit Insurance of Vietnam (DIV);

For implementation of the Decision No. 527/QD-TTg dated April 01, 2016 of the Prime Minister on amendments to the Charter on organization and operation of Deposit Insurance of Vietnam (DIV) enclosed with the Decision No.1395/QD-TTg dated August 13, 2013 of the Prime Minister;

At the request of the Director of the Department of Banking and Financial Institutions;

The Minister of Finance promulgates a Circular providing amendments to the Circular No. 312/2016/TT-BTC dated November 24, 2016 of the Ministry of Finance prescribing financial regime for Deposit Insurance of Vietnam (DIV).

Article 1. Amendments to Circular No. 312/2016/TT-BTC dated November 24, 2016 of Ministry of Finance prescribing financial regime for Deposit Insurance of Vietnam (DIV)

1. Point e is added to Clause 2 Article 4 as follows:

“e) Income from debt-claims of special loans offered to credit institutions placed under special control. DIV must keep separate record of this income in its technical reserve fund.”

2. Clause 4 and Clause 5 Article 5 are amended as follows:

“4. DIV is allowed to use its operating capital to purchase government bonds or long-term bonds of assisting credit institutions according to decision issued by the State Bank of Vietnam (SBV), purchase SBV bills and make deposits at SBV.

5. Its technical reserve fund shall be used for:

a) making payouts to depositors in accordance with regulations of the Law on Deposit Insurance.  In case the balance of its technical reserve fund is not sufficient to make payouts to all depositors, DIV is allowed to:

- Apply for financial supports or loans from credit institutions in accordance with regulations of the Law on Deposit Insurance and relevant legislative documents.

- Sell government bonds, long-term bonds purchased from assisting credit institutions and/or SBV bills. The difference between the selling price and the cost incurred from purchase of government bonds, long-term bonds issued by assisting credit institutions or SBV bills (either positive or negative after having settled with loss reserve as prescribed) shall be recorded in accounts of its technical reserve fund.

b) offering special loans to credit institutions placed under special control in accordance with law regulations.  DIV must ensure that the use of its technical reserve fund to offer special loans to credit institutions placed under special control shall not affect its capacity to make payouts to depositors. DIV must closely monitor loans and expedite debt recovery for reducing potential losses.

c) making up losses due to failure to recover debts of special loans offered to credit institutions placed under special control as prescribed in Article 7a hereof.”

3. Point a and Point b Clause 2 Article 6 are amended as follows:

“a) DIV shall annually determine the amount of revenue, earned from investment activities using its operating capital, taken up as income and submit report thereof to the Ministry of Finance by January 15 of the planning year, enclosed with its plan for capital use, estimated income and expenditures, and relevant documents.

b) Within 60 days from the receipt of adequate documents, the Ministry of Finance shall play the leading role and cooperate with SBV in deciding the amount of DIV’s revenue recorded as income in the planning year.  The amount of revenue recorded as income shall be decided in a manner that ensures DIV is capable of covering its operating expenses and setting aside mandatory reserves and provisions."

4. Point c Clause 2 Article 7 is amended as follows:

“c) Settle asset losses and irrecoverable debts, and set aside loss reserve as prescribed in Point 1.9 Clause 1 Article 19 hereof.”

5. Point b Clause 4 Article 7 is amended as follows:

“b) There is a decrease in the balance of DIV’s technical reserve fund because it is used for making of payouts to depositors at insured institutions and making up losses from special loans offered to credit institutions placed under special control.”

6. Point d and Point dd are added to Clause 4 Article 7 as follows:

“d) The income earned by DIV in the year is affected because its operating capital has been used for purchasing long-term bonds from assisting credit institutions as prescribed.

dd) DIV sells government bonds, long-term bonds purchased from assisting credit institutions and/or SBV bills for making payouts to depositors in case the balance of its technical reserve fund is not sufficient for making payouts to depositors."

7. Article 7a is added as follows:

“Article 7a. Settlement of losses from special loans offered to credit institutions placed under special control

a) DIV is allowed to use the balance of incomes from debt claims of special loans offered to credit institutions placed under special control, which is separately recorded in its technical reserve fund as prescribed in Point e Clause 2 Article 4 hereof, for making up irrecoverable losses from such special loans. If the balance of incomes from debt claims of special loans is not sufficient for making up losses, DIV shall submit a report thereof to SBV for deciding the use of its technical reserve fund for making up losses as prescribed.

b) DIV is not allowed to set aside the provision for bad receivable debts regarding special loans offered."

8. Point 1.9 Clause 1 Article 19 is amended as follows:

“1.9. Expenditures on loss reserves (including provisions for long-term bonds purchased from assisting credit institutions) which are determined in accordance with law regulations on establishment and settlement of provisions against devaluation of goods in stock, investment losses, bad receivable debts and warranty for products, goods, services and buildings."

9. Paragraph g Point 1.10 Clause 1 Article 19 is amended as follows:

“g) Expenditures on unresolved asset losses (including losses from long-term bonds purchased from assisting credit institutions) after they have been made up by the loss reserve and other funding sources (if any) as prescribed.”

10. Clause 3 Article 21 is amended as follows:

 “3. The evaluation of business performance and ranking of DIV which is used as the basis for setting aside reward and welfare funds and reward funds for executives shall be carried out in accordance with relevant regulations applied to wholly state-owned single-member limited liability companies.”

11. Clause 2 and Clause 3 Article 24 are amended as follows:

“2. SBV shall play the leading role and cooperate with the Ministry of Finance in reviewing the financial plan. Based on opinions given by the Ministry of Finance, SBV shall decide indicators of the financial plan and indicators for performance evaluation and ranking of DIV by April 30 of the planning plan and assume responsibility for its decision.

a) The financial plan includes the following indicators:

- Total income minus total expenses excluding salaries;

- Expenditures on officials’ overseas business trips;

- Expenditures on scientific research;

- Expenditures on training and drilling courses provided for officials;

- Expenditures on hiring of domestic and foreign experts.

If any financial indicators assigned by SBV cannot be achieved during the implementation of the financial plan, DIV must send a written request for adjustment of the financial plan to SBV and shall implement the adjusted financial plan after obtaining the written consent from SBV (after having consulted the Ministry of Finance). SBV shall assume responsibility for its decision to approve the adjusted financial plan of DIV.

b) Indicators for performance evaluation and ranking of DIV shall comply with regulations laid down in the Government’s Decree No. 87/2015/ND-CP dated October 06, 2015 and its amending or superseding documents (if any).  These evaluation indicators shall be kept unchanged during the planning period (except remarkable force majeure events).

3. Based on planning items assigned by SBV according to Point a Clause 2 of this Article, DIV’s Board of Directors shall approve its financial plan for implementation.”

12. Clause 4 is added to Article 25 as follows:

“4. Reporting forms:

DIV shall prepare written reports and send them to the Ministry of Finance and SBV in one of the following forms:

a) Reports may be sent directly; or

b) By post.”

13. Article 25a is added as follows:

“Article 25a. Information disclosure

DIV must make public disclosure of information in accordance with regulations of the Law on deposit insurance and regulations on information disclosure by state-owned enterprises."

14. Clause 3 Article 29 is amended as follows:

“3. Pursuant to this Circular and relevant laws, within 120 days from the date of promulgation of this Circular, DIV’s Board of Directors shall promulgate its internal financial regulations and send a copy thereof to SBV for monitoring.”

Article 2. Implementation

1. This Circular comes into force from May 20, 2020.

2. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance for consideration./.