Thông tư 41/2014/TT-BTC

CIRCULAR

DEFINING FINANCIAL REGULATIONS WITH RESPECT TO DEPOSIT INSURANCE OF VIETNAM

Pursuant to the Law on Deposit Insurance No. 06/2012/QH13 dated June 18, 2012;

Pursuant to the Government’s Decree No. 68/2013/NĐ-CP dated June 28, 2013 stipulating in detail the implementation of the Law on deposit insurance;

Pursuant to the Government’s Decree No. 215/2013/NĐ-CP dated December 23, 2013 defining the functions, tasks, entitlements and organizational structure of the Ministry of Finance;

Pursuant to the Prime Minister’s Decision No. 1394/QĐ-TTg dated August 13, 2013 on the establishment of Deposit Insurance of Vietnam;

Pursuant to the Prime Minister’s Decision No. 1395/QĐ-TTg dated August 13, 2013 on approval of statutes of organization and performance of Deposit Insurance of Vietnam;

Following the Prime Minister’s direction in the Circular No. 10923/VPCP-KTTH dated December 26,, 2013 on financial regime of Deposit Insurance of Vietnam;

At the proposal of the Director of the Financial Department, banks and financial institutions,

The Minister of Finance has promulgated the Circular defining financial regime with respect to Deposit Insurance of Vietnam,

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

This Circular defines financial regime with respect to Deposit Insurance of Vietnam, which is established, organized and run according to the Prime Minister’s Decision No.1394/QĐ-TTg dated August 13, 2013 on the establishment of Deposit Insurance of Vietnam and Decision No. 1395/QĐ-TTg dated August 13, 2013 on approval of the statutes of organization and performance of deposit insurance of Vietnam.

Article 1. Principles of financial management

Deposit Insurance of Vietnam is a financial institution of which 100% charter capital is held by the State, having a legal entity, a seal, and an account under Vietnamese law, operating not-for-profit, ensuring capital adequacy and self-financed expenses. Source of revenues of Deposit Insurance of Vietnam is exempted from all taxes according to the provisions of law.

Deposit Insurance of Vietnam shall do the bookkeeping for the entire system; implement receipts and expenditures and financial settlement according to the requirements set out in this Circular and other legislative documents.

Article 3. Responsibility regime

Board of Directors of Deposit Insurance of Vietnam shall be responsible to the law, state management agencies for managing capital adequacy and assets, use of loan, complying with financial, accounting and auditing regulations of Deposit Insurance of Vietnam.

Chapter II

CAPITAL AND ASSET MANAGEMENT

Section 1 – Capital management

Article 4. Operational capital of Deposit Insurance of Vietnam

Operation capital of Deposit Insurance of Vietnam consists of charter capital provided by the state budget, revenues from deposit insurance premiums, investment of idle funds and other legal sources of income according to the law, particularly as follows:

1. Charter capital

a) Charter capital of VND 5 trillion provided by the state budget and other legal sources;

b) When adjustment to charter capital is required, Board of Directors of Deposit Insurance of Vietnam shall report to the Ministry of Finance who shall then proactively coordinate with the State Bank of Vietnam to make submission to the Prime Minister for consideration and decision.

2. Technical reserve funds are raised from the following sources:

a) Annual deposit insurance premiums  

b) Receipts from investment of idle funds after a part of it is deducted for covering activities of Deposit Insurance of Vietnam according to the regulations set out in Paragraph 1, Article 12 hereof;

c) Unreceived deposit insurance premiums according to the regulations set out in Paragraph 6, Article 26 of the Law on deposit insurance;

d) Remaining amount (if any) from liquidation of assets by organizations having deposit insurance (hereinafter referred to as insured institutions) according to the regulations set out in Paragraph 2, Article 11 hereof;

dd) Annual outstanding balance after development investment funds, commendation and welfare funds are built up according to the regulations set out in Point c, Paragraph 2, Article 17 hereof (if any).

3. Development investment funds  

4. Other capitals according to the provisions of law, including:

a) Capital received as aids according to the regulations set out in the Law on deposit insurance and relevant legal documents;

b) Sponsors from organizations, individuals at home and abroad (if any);

c) Differences due to re-evaluation of assets (if any);

d) Outstanding balance that is not allocated to funds (if any);

dd) Other legal sources

Article 5. Principles of capital use

1. Deposit Insurance of Vietnam is entitled to use capital to serve its operation according to the law. Using capital of Deposit Insurance of Vietnam must ensure the safety and development of capital.

2. Deposit Insurance of Vietnam shall be responsible for monitoring all the existing capitals and assets, doing the bookkeeping in strict compliance with current financial regime and statistics, reflecting sufficiently, accurately and punctually changes in capital and assets during its operation, defining specific responsibilities of each department, individual for causing damage and loss of its capital, assets.

3. Deposit Insurance of Vietnam is entitled to purchase and invest in fixed assets in the limitation that the remaining value of the fixed assets would not exceed 30% of the charter capital plus the value of development investment fund stated in the accounting book. Investment and purchase of fixed assets must comply with state regulations, ensuring practice of thrift and anti-extravaganza within the five-year plan approved by the Board of Directors.

4. Deposit Insurance of Vietnam is entitled to use its temporarily idle funds to purchase Government bonds, treasury bills of State bank of Vietnam and make deposits at State Bank of Vietnam. Deposit Insurance of Vietnam should monitor and separately record the incomes earned from the investment of these idle funds.

5. The technical reserve funds shall be used to pay indemnities to depositors according to the law on deposit insurance. In case the technical reserve funds are not sufficient to pay to depositors, Deposit Insurance of Vietnam may receive aids or borrow from credit institutions, other organizations guaranteed by the Government according to the Law on deposit insurance and guiding documents.

Section 2 – Asset management

Article 6. Inventory and re-evaluation of assets

1. Inventory of assets

Deposit Insurance of Vietnam shall carry out periodical or unexpected inventory of assets after accounting books are closed for the formulation of annual financial statements; natural calamities and enemy inflicted destruction; or assets of Deposit Insurance of Vietnam are changed for some reason; or as stipulated by the law. Deposit Insurance of Vietnam should inventory assets in surplus and in shortage, determine causes, responsibility of relevant organizations and individuals and put forth an indemnity according to the regulations.

Deposit Insurance of Vietnam shall handle and inventory assets of the enterprises of which 100% charter capital is held by the State according to the law.

2. Re-evaluation of assets

a) Deposit Insurance of Vietnam shall carry out re-evaluation of assets according to the decision of regulatory agencies;

b) The re-evaluation of assets should be in strict compliance with state regulations. Increasing or decreasing differences of value due to the re-evaluation of assets as regulated in Point a, Paragraph 2 of this Article are settled according to the provisions of law in respect of each specific case.

Article 7. Fixed asset depreciation

Deposit Insurance of Vietnam shall depreciate fixed assets according to the law in respect of enterprises. Deposit Insurance of Vietnam is entitled to use deductions or re-investment or replacement of fixed assets and for other purposes according to the regulations set out in Paragraph 4, Article 5 hereof.

Article 8. Handling of asset losses

Any loss of assets caused to Deposit Insurance of Vietnam (Except for losses subject to deposit insurance commitments of Deposit Insurance of Vietnam) must be documented to determine lost value, causes, and responsibilities and handled as below:

1. If the loss is caused by human errors, the person causing such loss shall pay compensation. Board of Directors of Deposit Insurance of Vietnam shall decide degree of compensation and take responsibility for its decision.

2. Insured assets shall be handled under the contract of insurance.

3. Shortage of the lost value after being recovered and compensated by individuals, collectives, insurers shall be included in the expenses in the period.

4. Losses or serious damage caused by natural disaster or force majeure respectively as well as losses coming from irrecoverable debts which are borrowed before January 01, 2013 can not be tackled by Deposit Insurance of Vietnam, its Board of Directors shall plan a measure of handling and report to the State Bank of Vietnam who shall then make submission to the Prime Minister for decision.

5. Deposit Insurance of Vietnam shall be responsible for handling losses of assets punctually. In case those losses are not tackled, the Board of Directors and General Director shall take responsibility before the Governor of the State Bank of Vietnam.

Article 9. Fixed asset lease

1. Deposit Insurance of Vietnam is entitled to lease assets in compliance with the principle of efficiency, preservation and development of capital according to the law in respect of the enterprises of which 100% charter capital is held by the State.

2. Use of assets for lease must be in strict compliance with the regulations of the Civil Law and other relevant regulations.

Article 10. Liquidation and assignment of fixed assets

1. Deposit Insurance of Vietnam is entitled to proactively assign, sell or liquidate fixed assets in damage or technically obsolete, unwanted or unusable to recover capital in compliance with the principle of openness, transparency and preservation of capital.

2. Board of Directors of Deposit Insurance of Vietnam shall decide or grant authority according to Board of Director’s assignment regime for the plan of liquidating, assigning fixed assets with value being less than 50% of the charter capital but not exceeding the limit of Group B project according to the law on liquidation and assignment of fixed assets in respect of the enterprises of which 100% charter capital is held by the State.

Plans of liquidating and assigning fixed assets with value being higher than the limit arranged to the Board of Directors, the Board of Directors shall report to the State Bank of Vietnam for decision.

Article 11. Handling of receipts from liquidation of assets of insured institutions going bankrupt.

1. Liquidation of assets of insured institutions going bankrupt shall be executed according to the provisions of law.

2. The sums collected from liquidation of assets of insured institutions shall be used as below:

a) Reimburse for the supportive loans and guarantees provided by Deposit Insurance of Vietnam before January 01, 2013 in respect of these enterprises;

b) The remaining amount after reimbursement (if any) shall be transferred to technical reserve funds.

Chapter III

RECEIPTS AND EXPENDITURES

Article 12. Receipts of Deposit Insurance of Vietnam

Receipts of Deposit Insurance of Vietnam are accounts receivable, invoices or appropriate documents including:

1. Receipts from financial activities: Part of the receipts from annual investment of idle capital shall be entered in the accounts as earnings. Based on the proposal from Deposit Insurance of Vietnam, the Ministry of Finance shall proactively coordinate with the State Bank of Vietnam to determine a specific amount to be deducted in each period.

2. Receipts from deposit insurance services:

a) Receipts from fines imposed on insured institutions that violate regulations on the amount and time limit for payment of premiums according to the provisions of law;

b) Receipts from interests on the supportive loans provided for insured institutions before January 01, 2013

3. Receipts from other activities:

a) Receipts from liquidation, sale and assignment of fixed assets

b) Receipts from lease of fixed assets;

c) Receipts from consultancy services and training for officers of insured institutions;

d) Other receipts.

Article 13. Enter into the accounts the receipts from investment of idle capital of Deposit Insurance of Vietnam

1. Deposit Insurance of Vietnam shall open an account to separately monitor receipts from the investment of idle capital.

2. At the end of month or quarter, Deposit Insurance of Vietnam shall rely on a rate permissible to be deducted from the receipts from annual investment of idle capital to cover operational expenses according to the regulations set out in Paragraph 1, Article 12 hereof and the receipts earned from the investment of idle capital in such a month, quarter shall be temporarily deducted for entering in the accounts as earnings (equal to the multiplication of the rate by the receipts from the investment of idle capital); the remaining receipts from the investment of idle capital shall be entered in the technical reserve funds. In case such a deductible rate used to cover operational expenses is yet to be approved by the Ministry of Finance, Deposit Insurance of Vietnam shall temporarily enter into the accounts as earnings with a rate equal to 80% of the preceding year’s deductible rate.

3. At the end of year, based on the year’s receipts from investment of idle capital, Deposit Insurance of Vietnam shall be responsible for entering accurately the receipts in the accounts as earnings and the receipts after being partly deducted to cover the expenses according to the regulations set out in Paragraph 1, Article 12 hereof shall be supplemented to the technical reserve funds;

4. After State Audit of Vietnam’s annual finance audit report or the competent agencies’ conclusions on financial receipts and expenditures of Deposit Insurance of Vietnam are available, in the event the receipts from the investment of idle capital change, Deposit Insurance of Vietnam shall be responsible for adjusting allocation of the receipts to earnings and the receipts after being partly deducted to cover the operational expenses according to the regulations set out in Paragraph 1, Article 12 hereof to be supplemented to the technical reserve funds

Article 14. Expenditures of Deposit Insurance of Vietnam

Expenditures of Deposit Insurance of Vietnam are accounts payable necessary for the performance of Deposit Insurance of Vietnam, attached with invoices and appropriate documents and subject to the financial plans annually appraised by the State Bank of Vietnam. Expenditures of Deposit Insurance of Vietnam consist of:

1. Expenditures for interests for the loans coming from Deposit Insurance of Vietnam’s capital temporarily insufficient to pay to depositors according to the regulations set out in Paragraph 12, Article 13 of the Law on deposit insurance.

2. Expenditures on payment and entrusted services

3. Expenditures on participation in special control process; participation in management and liquidation of assets of insured institutions.

4. Expenditures for debt collection services (if any) to organizations permitted to practice debt collection services according to the provisions of law with respect to doubtful debts, debts loaned before January 01, 2013 by Deposit Insurance of Vietnam and debts of which Deposit Insurance of Vietnam has become the creditor when participating in the liquidation of assets of insured institutions going bankrupt according to the provisions of law.

5. Expenditures for exchange differences according to the regulations set out in the accounting standards and the provisions of law.

6. Expenditures for dissemination and education of law and deposit insurance policies. Content and amount of payment shall be applied according to the provisions of law. Total amount of payment for these expenditures should not exceed 3% of the total appropriate payment.

7. Expenditures to employees:

a) Wages and remuneration paid to managerial officers of Deposit Insurance of Vietnam as instructed by the Ministry of Labor, Invalids and Social Affairs;

b) Wages and amounts considered wages paid to employees as decided by the Board of Directors according to the instructions of the Ministry of Labor, Invalids and Social Affairs;

c) Expenditures for food expenses according to the provisions of law with respect to the enterprises of which 100% charter capital is held by the State.

d) Expenditures for female laborers according to regulated regime;

dd) Expenditures for business attire: Based on maximum amount of payment approved by State Bank of Vietnam in the annual financial plans, Board of Directors of Deposit Insurance of Vietnam shall decide a specific amount of payment for business attire, ensuring principle of thrift and efficiency;

e) Expenditures for personal protective equipment as regulated;

g) Expenditures for severance pay and redundancy pay;

h) Expenditures for regular check-ups for laborers and other medical expenses according to regulated regime;

i) Expenditures for annual leave pay;

k) Expenditures for social insurance, medical insurance, unemployment insurance, trade union expenses and other contributions according to regulated regime;

8. Expenditures for management activities including:

a) Expenditures for office supplies;

b) Expenditures for postal services, communications, telexes, leased lines, facsimile transmission;

c) Expenditures for electricity, water, medical services, office and environment sanitation;

d) Expenditures for fuel;

dd) Expenditures for formalities, external relations, festivities and conferences according to current regulations and must be closely related to activities of Deposit Insurance of Vietnam. These expenditures must not exceed 5% of the total appropriate payment.

e) Expenditures for officers’ domestic business travel expenses according to the provisions of law with respect to regulatory agencies and public service providers;

g) Expenditures for officers’ overseas business travel expenses: to be applied according to the proposed plan approved by Deposit Insurance of Vietnam. Content and amount of payment shall be applied according to state regulations on short-term foreign travel expenses for officers and public servants from public service providers and guaranteed by state budget.

h) Expenditures for training officers: to be applied within the plan of training officers approved by Board of Directors of Deposit Insurance of Vietnam. Content and amount of payment shall be applied according to state regulations on management and use of expenses for training officers and public servants;

i) Expenditures for scientific research: to be applied within the plan of scientific research approved by the Board of Directors of Deposit Insurance of Vietnam. Content and amount of payment: to be applied according to state regulations with respect of scientific and technological topic and project using state budget;

k) Expenditures for employment of domestic and foreign specialists: to be applied within the five-year plan approved by Board of Directors of Deposit Insurance of Vietnam;

l) Expenditures for investigation, inspection and auditing;

m) Expenditures for fines for violations of business contracts caused by objective events.

n) Expenditures for rewards for initiative in improving and increasing labor productivity, rewards for practice of material and expense thrift. Amount of reward decided by the General Director shall be based on levels of productivity from mentioned above jobs but not higher than the amount saved by those jobs in a year.

o) Expenditures for environmental protection tasks;

p) Expenditures for court proceedings;

q) Expenditures for other management tasks as regulated.

9. Expenditures for assets

a) Fixed asset depreciation: Based on the provisions of law on management, use and deduction of fixed asset depreciation with respect to enterprises, Board of Directors of Deposit Insurance of Vietnam shall define specifically rate of deduction for each type of asset in the internal financial statute in accordance with particular operation;

b) Expenditures for purchase of asset insurance;

c) Expenditures for purchase of labor means;

d) Expenditures for maintenance and repair of assets: Maximum annual payment should not exceed 5% of fixed assets value on average;

dd) Expenditures for lease of assets under the contract of asset lease signed between the lessor and Deposit Insurance of Vietnam. In case payment for lease of assets is made once for multiple years, the rental shall be gradually allocated to the expenditures according to the number of years of use of the assets.

e) Expenditures for liquidation, sale and assignment of asset (including remaining value of assets and costs for liquidation and assignment);

g) The loss of assets that is not reimbursed by the prescribed sources.

10. Other expenditures:

a) Expenditures on activities of Communist Party and associations in case their budgets are not sufficient to cover activities according to regulated regime;

b) Expenditures for fire and explosion prevention, national defense and security;

c) Taxes, charges;

d) Membership fees imposed by Vietnamese and foreign trade associations of which Deposit Insurance of Vietnam is a member;

dd) Board of Directors of Deposit Insurance of Vietnam shall decide and take responsibility for the reasonable expenses that are necessary for its operation and not mentioned in this Circular.

Article 15. Amounts of deposit insurance not allowed being included in expense

1. Fines for breach of law by individuals bearing no name of Deposit Insurance of Vietnam.

2. Expenditures not related to the operation of Deposit Insurance of Vietnam and not attached with eligible invoices or documents.

3. Expenditures covered by other sources.

4. Other expenditures as inappropriate

Chapter IV

DIFFERENCES BETWEEN RECEIPTS AND EXPENDITURES AND SETTING UP OF FUNDS

Article 16. Differences between receipts and expenditures

Differences between financial receipts and expenditures made in a year are the results from the performance of Deposit Insurance of Vietnam and determined by gross revenue minus the total appropriate payment generated in a year.

Article 17. Handling of annual outstanding balance

Differences between receipts and expenditures of Deposit Insurance of Vietnam are distributed as follows:

1. Make up for differences in previous years due to receipts being lower than expenditures

2. The remaining considered as 100% shall be handled as follows:

a) 30% shall be supplemented to the development investment funds untill the development investment funds are equal to the charter capital of Deposit Insurance of Vietnam as regulated in Paragraph 1, Article 4 hereof;

b) Build-up of the commendation and welfare funds

- If Deposit Insurance of Vietnam is ranked A, not more than 03 months' salary shall be added to the commendation and welfare funds;

- If Deposit Insurance of Vietnam is ranked B, not more than 03 months' salary shall be added to the commendation and welfare funds;

- If Deposit Insurance of Vietnam is ranked C, not more than 03 months' salary shall be added to the commendation and welfare funds;

- If Deposit Insurance of Vietnam is not ranked, the commendation and welfare funds shall not be set up.  

Ratio of distribution to the commendation and welfare funds shall be decided by Board of Directors of Deposit Insurance of Vietnam.

c) Setting up of commendation fund for the Management Board

- If Deposit Insurance of Vietnam is ranked as A, not more than one and a half month’s salary shall be added to the commendation fund for officers of the Management Board.

- If Deposit Insurance of Vietnam is ranked as B, not more than one month’s salary shall be added to the commendation fund for officers of the Management Board.

- If Deposit Insurance of Vietnam is ranked as C or is not ranked, the commendation fund for officers of the Management Board shall not be set up.

d) The remaining amount shall be supplemented to the development investment funds. When the development investment funds reach the limit as stipulated in Point a, Paragraph 2 of this Article, the outstanding balance after the build-up of the commendation and welfare funds, the commendation fund for the Management Board shall be supplemented to the technical reserve fund.

3. Deposit Insurance of Vietnam shall be assessed and ranked according to the provisions of law on performance assessment with respect to the state-owned enterprises, state-capitalized enterprises and particular instructions of the State Bank of Vietnam.

Article 18. Principle of using funds set up from balance

1. The development investment funds shall be used to supplement the charter capital of Deposit Insurance of Vietnam under the Prime Minister’s Decision based on the proposal of the Ministry of Finance after State Bank of Vietnam’s opinions are given.

2. The commendation fund shall be used for:

a) Year end or periodical bonus for officers and staff. Level of reward shall be decided by Deposit Insurance of Vietnam after opinions from Trade Union of Deposit Insurance of Vietnam are given based on labor productivity and achievements of each officer, staff in Deposit Insurance of Vietnam;

b) Unplanned rewards to individuals, collectives of Deposit Insurance of Vietnam. Level of reward shall be decided by Deposit Insurance of Vietnam;

c) Rewards to external individuals and units who make significant contributions to the performance of Deposit Insurance of Vietnam. Level of reward shall be decided by Deposit Insurance of Vietnam;

Authority to decide level of reward as stated in Paragraphs a, b and c mentioned above shall be exercised according to the regulations set out in the Statute on organization and operation of Deposit Insurance of Vietnam.

3. The welfare fund shall be used:

a) For construction investment or repairs, supplementing capital to the construction of welfare works of Deposit Insurance of Vietnam;

b) For paying for welfare activities of Deposit Insurance of Vietnam’s workforce;

c) Part of the welfare fund shall be used as support for unexpected financial difficulties of laborers including cases of retirement, disability, homelessness, or for charitable activities.

Use of the welfare funds shall be decided by President of Board of Directors of Deposit Insurance of Vietnam after consulting Trade Union of Deposit Insurance of Vietnam.

4. The commendation fund for the Management Board shall be used as rewards to Chairman and members of the Board of Directors, the Management Board, Inspectors, Chief Accountant of Deposit Insurance of Vietnam. Reward levels shall be decided by the State Bank of Vietnam and must be corresponding to the performance of Deposit Insurance of Vietnam based on the proposal of President of the Board of Directors.

Chapter V

ACCOUNTING, STATISTICS, AUDITING REGIME AND FINANCIAL PLANS

Article 19. Accounting, statistics

1. Deposit Insurance of Vietnam shall comply with regulations on accounting and statistics according to the provisions of law and guiding documents of the Ministry of Finance.

2. Financial year of Deposit Insurance of Vietnam starts on January 01 and ends on December 31 according to solar calendar.

Article 20. Financial plan

1. Annually, Deposit Insurance of Vietnam shall be responsible for making and submitting to State Bank of Vietnam the draft financial plan before July 31 of the year prior to fiscal year, including:

a) Plan of operational capitals (enclosed with a detailed explanation for fluctuation of the operational capital planned for the fiscal year);

b) Plan of receipts – expenditures (enclosed with a detailed explanation for receipts and expenditures and specific limit of expense planned for the fiscal year);

c) Plan of fundamental construction and purchase of fixed assets (enclosed with a detailed explanation for planned fundamental construction, purchase of fixed assets and balance of capital sources);

d) Plan of labor, payroll - incomes

2. Within 30 days since the dossier is fully received, the State Bank of Vietnam shall carry out appraisal of the financial plan and advance some fundamental criteria as foundation for Board of Directors of Deposit Insurance of Vietnam to approve the financial plan. Fundamental criteria assigned to Deposit Insurance of Vietnam by the State Bank of Vietnam include:

a) Total receipts;

b) Total expenditures;

c) Details of some receipts – expenditures include:

- Expenditures for business attire;

- Expenditures for business travel

- Expenditures for scientific research;

- Expenditures for training officers;

- Expenditures for domestic and foreign specialists

3. Board of Directors of Deposit Insurance of Vietnam shall approve the financial plan after State Bank of Vietnam’s appraising opinions are given. During the implementation of the financial plan, in case financial criteria assigned by the State Bank of Vietnam including total receipts and expenditures and other payments as specified in Clause 2 of this Article are not fulfilled, Deposit Insurance of Vietnam must submit a written request for adjustment to the State Bank of Vietnam and the implementation is permitted after a written approval by the State Bank of Vietnam is issued.

Article 21. Reporting regime

Periodically (quarter, yearly), Deposit Insurance of Vietnam shall be responsible for formulating and submitting professional reports, statistical reports, financial statements and other regular, irregular reports according to the regulations of the Ministry of Finance and General Statistics Office.

1. Types of reports

a) Statement of accounts (Type III);

b) The Balance sheet (Summary of assets);

c) Performance report;

d) Explanation of the financial statement:

- Situations of rise and fall in fixed assets;

- Personnel and their salaries/incomes;

- Rise and fall in sources of capital and use of capital;

- The build-up and use of technical reserve fund.

dd) Reports on performance assessment and annual ranking according to the regulations of the State Bank of Vietnam.

2. President of the Board of Directors, General Director of Deposit Insurance of Vietnam shall be responsible for accuracy and authentication of these reports.

3. Time limit and place for submission of reports:

a) Quarterly reports shall be sent to the Ministry of Finance and State Bank of Vietnam within 30 days at the latest since end of quarter;

b) Annual reports passed by the Board of Directors shall be sent to the Ministry of Finance and State Bank of Vietnam within 45 days at the latest since end of fiscal year;

Article 22. Accounting

1. Deposit Insurance of Vietnam shall carry out internal audit under applicable regulations.

2. Financial statements of Deposit Insurance of Vietnam shall be audited by State Audit of Vietnam. Audit results and reports on audit results shall be sent to the Ministry of Finance and State Bank of Vietnam;

Chapter VI

RESPONSIBILITIES OF MANAGEMENT AGENCIES

Article 23. Responsibilities of the Ministry of Finance

1. Carry out financial investigation under the provisions of the law on financial investigation.

2. Investigate and assess compliance with the financial regulations in order to complete the financial regime of Deposit Insurance of Vietnam.

3. Proactively coordinate with State Bank of Vietnam in making submission to the Prime Minister for decision to change limit of charter capital of Deposit Insurance of Vietnam based on the proposal of the Board of Directors of Deposit Insurance of Vietnam.

4. Coordinate with State Bank of Vietnam in handling financial issues of Deposit Insurance of Vietnam.

Article 24. Responsibilities of State bank of Vietnam

1. Execute state management functions for deposit insurance under the provisions of law.

2. Carry out comprehensive investigation, inspection and monitoring of the performance of Deposit Insurance of Vietnam; on a quarterly and yearly basis, notify the Ministry of Finance of Deposit Insurance of Vietnam’s financial situations and violations (if any) of the financial regime detected during the investigation, inspection and monitoring, and violation handling measures advanced by Deposit Insurance of Vietnam.

3. Execute functions as representative of state ownership for Deposit Insurance of Vietnam.

a) Make decision and be responsible for its decisions within scope of authority of the state ownership under the provisions of law;

b) Proactively coordinate with the Ministry of Finance in making submission to the Prime Minster for consideration and decision about financial issues beyond its authority;

c) Based on the provisions of law and distinctive performance of Deposit Insurance of Vietnam, regulate and instruct performance assessment and enterprise ranking with respect to Deposit Insurance of Vietnam.

Chapter VII

IMPLEMENTATION

Article 25. Transitional regulation

1. Deposit Insurance of Vietnam shall handle balance of redundancy pay reserve fund at the point of December 31, 2012 according to the regulations set out in the Circular No. 180/2012/TT-BTC dated October 24, 2012 of the Ministry of Finance guiding financial handling for redundancy pay toward laborers of the enterprise.

2. Balance of financial reserve funds, development investment funds after being set up based on financial results of 2013, Deposit Insurance of Vietnam shall report to the Ministry of Finance for making submission to the Prime Minister for conversion into charter capital assigned to Deposit Insurance of Vietnam.

Article 26. Effect

1. This Circular shall come into force since May 25, 2014 and shall be applied in the fiscal year of 2014.

2. This Circular shall replace the Circular No. 62/2008/TT-BTC dated July 08, 20008 of the Ministry of Finance on guiding the implementation of the statute of financial management with respect to Deposit Insurance of Vietnam, the Circular No. 229/2009/TT-BTC dated December 08, 2009 of the Ministry of Finance on amending and supplementing the Circular No. 62/2008/TT-BTC.

3. Based on the regulations set out in this Circular and other relevant provisions, within 120 days since this Circular comes in force, Board of Directors of Deposit Insurance of Vietnam shall promulgate the statute of internal finance as foundations for implementation.

4. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance for study, consideration and handling./.