On November 24, 2016, the Ministry of Finance issued the Circular No. 312/2016/TT-BTC defining financial regulations with respect to deposit insurance of Vietnam, a financial institution that is operating in the form of a single-member limited liability company of which 100% charter capital is held by the State, having a legal status, a seal, and an account under Vietnamese law, operating on a not-for-profit basis, and ensuring capital adequacy and self-financed expenses.
The charter capital of VND 5 trillion of Deposit insurance of Vietnam provided by the state budget and other legal source. The Deposit insurance of Vietnam also have technical reserve funds; development investment funds and other capitals according to the provisions of law.
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. 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. 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. The technical reserve funds shall be used for the purpose of paying insurance payout to depositors in accordance with the law on deposit insurance.
This Circular takes effect on January 10, 2017 and replaces Circular No. 41/2014/TT-BTC dated April 8, 2014.
