Decree No. 100/1998/ND-CP on the financial regime of the State Bank of Vietnam

DECREE

Regarding the financial regime of the State Bank of Vietnam

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997;

At the proposal of the Governor of the State Bank of Vietnam and the Minister of Finance,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. This Decree stipulates the financial regime for the State Bank of Vietnam (hereinafter referred to as the State Bank).

This Decree does not apply to units operating on state budget funds and independent economic accounting enterprises directly under the State Bank.

Article 2. The State Bank's financial income and expenditure shall, in principle, be carried out in accordance with the provisions of the Law on State Budget and the Law on the State Bank of Vietnam.

Article 3. The State Bank may use its revenues to cover its operational costs. After setting aside reserves as prescribed by the Law on the State Bank of Vietnam and the specific provisions of this Decree, the remaining amount shall be remitted to the state budget.

Article 4. The State Bank is exempt from paying various taxes on its banking business operations and services.

Article 5. The Governor of the State Bank is responsible before the Government for preparing plans for revenue and expenditure and organizing the implementation of the financial regime of the State Bank.

Article 6. The Ministry of Finance performs the state management function over finance and is responsible for inspecting and auditing the State Bank's financial income and expenditure activities.

Chapter II

CAPITAL AND FUNDS

Article 7. The State Bank manages and uses the following types of capital:

1. Statutory capital;

2. Capital for basic construction investment and fixed asset acquisition;

3. Currency issued into circulation to implement monetary policy;

4. Deposits from credit organizations and the National Treasury;

5. Borrowed capital;

6. Other capital.

Article 8. The State Bank establishes and uses a fund to implement national monetary policy and a risk reserve fund for its business operations.

Article 9. The statutory capital of the State Bank is five trillion Vietnamese dong (5,000 billion Vietnamese dong). Any change to this statutory capital level shall be decided by the Prime Minister at the proposal of the Governor of the State Bank and the Minister of Finance.

Article 10. Investment Capital for Construction and Fixed Asset Purchases

1. The capital for basic construction investment and fixed asset acquisition of the State Bank is formed from sources such as state budget allocation, depreciation of fixed assets, sale and liquidation of fixed assets, and other lawful sources.

The rate of depreciation of fixed assets of the State Bank is applied according to the rate prescribed by the State for state-owned enterprises.

2. The management, use, transfer, liquidation, inventory, and evaluation of the State Bank's capital for basic construction investment and fixed asset acquisition shall be carried out in accordance with the regulations of the State.

Article 11. The State Bank may allocate 10% of the annual revenue surplus to supplement the fund for implementing national monetary policy.

Article 12. The State Bank may establish a risk reserve fund and record it as an expense equal to 10% of total revenue minus expenses that do not include the risk reserve expense. This risk reserve fund is used to offset losses from credit activities, payment services, and treasury due to objective reasons and the remaining loss difference after collective or individual compensation in accordance with the law. In cases where the reserve fund is insufficient to offset losses, the State Bank and the Ministry of Finance shall submit measures to the Prime Minister for handling the shortfall.

Article 13. The State Bank has the responsibility to manage strictly, use reasonably, for the intended purpose, and safely all types of capital, funds, and assets; it shall not contribute capital or purchase shares of credit organizations or enterprises.

Chapter III

REVENUE AND EXPENDITURE

Article 14. The State Bank has the following sources of income

1. Income from credit operations: interest income from refinancing loans, interest income from lending, interest income from deposits, guarantee fees;

2. Income from open market operations;

3. Income from foreign exchange (foreign currency and gold) trading and transactions;

4. Income from payment services, information, and treasury;

5. Fees and charges.

6. Other revenue.

Article 15. The State Bank has the following expenditures

1. Expenditure on business and banking services:

a) Interest payments on deposits, interest payments on loans; expenditures related to foreign exchange trading and transactions; expenditures related to open market operations.

b) Costs for printing, minting, storage, transportation, delivery, issuance, recall, replacement, and destruction of money; expenditure on payment and information services.

Expenditures for business operations and services of the Bank shall be carried out in accordance with actual needs and the business regulations.

2. Expenditures for personnel of the State Bank, contractual employees, and rewards and welfare, including:

- Salary and allowances according to the system, lunch expenses, transaction attire expenses, labor protection equipment expenses.

- Periodic and extraordinary rewards and welfare for State Bank staff; the annual expenditure for these two items equals the total salary fund implemented in the year.

- Rewards for outstanding contributions by collectives and individuals in various sectors to the Bank, carried out in accordance with the regulations of the State.

3. Contributions according to wages (union fees, social insurance, health insurance, and other contributions according to the prescribed system), expenditure for mass organization activities.

4. Allowances for hardship and termination benefits as prescribed by law.

5. Expenditures for management and public service activities, including: office supplies expenses; postal and telecommunications expenses; electricity, water, health, sanitation expenses; travel expenses; reception, ceremonial, conference expenses; expenses for auditing and supervising the State Bank's operations; training, vocational education, scientific research, technological innovation expenses; library, publicity, advertising expenses. These expenditures are implemented according to unified standards agreed between the State Bank and the Ministry of Finance, consistent with the characteristics of the Bank's operations.

6. Expenditures for assets: depreciation of fixed assets; maintenance and repair expenses; small construction expenses; tool and equipment purchase expenses, rental expenses. The State Bank agrees with the Ministry of Finance on the ratio of upgrade, maintenance, and repair expenses to the current value of assets to implement.

7. Expenditures for technical and technological development in business operations: The State Bank may allocate up to 12% of the average value of fixed assets in the year to replenish the source of funds for purchasing fixed assets, equipping technical and IT equipment, and securing treasury safety; this expenditure is managed and used in accordance with the State's regulations on basic construction investment.

8. Expenditures for establishing a risk reserve fund as provided for in Article 12 of this Decree.

9. Other expenditures not mentioned above.

Article 16. The State Bank is responsible for fully, accurately, and promptly recording all revenues and expenditures in accordance with the legal provisions on accounting and statistics. Foreign currency and gold revenues and expenditures must be converted into Vietnamese dong at the official buying rate published by the State Bank at the time of occurrence.

Article 17. The difference between revenue and expenditure of the State Bank after setting aside 10% to establish a fund for implementing monetary policy shall be remitted to the State budget.

The remittance to the State budget shall be carried out quarterly on a provisional basis, with the provisional amount being 60% of the actual revenue and expenditure difference of the quarter; the remaining 40% shall be remitted to the State budget after the annual financial settlement report has been approved by the Governor of the State Bank.

Chapter IV

FINANCIAL INCOME AND EXPENSES PLANS AND REPORTS

Article 18. The fiscal year of the State Bank begins on January 1 and ends on December 31 of each calendar year.

Article 19. The annual financial revenue and expenditure plan of the State Bank is prepared annually, submitted to the Ministry of Finance for review, and presented to the Prime Minister. When it is necessary to adjust the annual plan, the State Bank will coordinate with the Ministry of Finance to submit to the Prime Minister for decision.

The State Bank implements accounting entries and documentation in accordance with the laws on accounting and statistics and the Law on the State Bank of Vietnam.

Article 20. The annual financial settlement report is prepared in accordance with the guidelines of the Ministry of Finance, approved by the Governor of the State Bank, and submitted to the Ministry of Finance no later than February 15 each year.

The auditing and verification of the State Bank's annual financial settlement report are conducted by the National Audit Office. The audit results are reported to the Prime Minister and notified to the Ministry of Finance.

Chapter V

IMPLEMENTATION

Article 21. The Ministry of Finance will coordinate with the State Bank to provide guidance on the implementation of this Decree.

Article 22. This Decree takes effect from January 1, 1999. Previous regulations concerning the State Bank in this field that conflict with this Decree are hereby repealed.

Article 23. The Governor of the State Bank, the Minister of Finance, Ministers, Heads of Ministries equivalent to Ministries, and Heads of Government Agencies, Chairmen of Provincial People's Committees under the Central Government shall implement this Decree./.