Decision No. 218/1999/QD-TTg On the establishment of the Vietnam Deposit Insurance Corporation

Pursuant to …;

Regarding the establishment of the Vietnam Deposit Insurance Corporation

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PRIME MINISTER

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

Pursuant to Decree No. 89/1999/NĐ-CP dated September 1, 1999 on deposit insurance;

At the proposal of the Governor of the State Bank of Vietnam and the Minister, Head of the Government Organizational and Cadre Affairs Board.

DECISION:

Article 1. The Vietnam Deposit Insurance Corporation is established to protect the rights and legitimate interests of depositors, contribute to maintaining the stability of participating organizations and ensuring safe and sound banking operations.

Article 2. The Vietnam Deposit Insurance Corporation is a state financial organization with legal personality, independent accounting, ensuring capital safety and self-financing, operating nationwide, having charter capital, assets, balance sheets, its own seal, and accounts opened at domestic and foreign banks.

The main office of the Vietnam Deposit Insurance Corporation is located in Hanoi and branch offices can be established in other areas within the country when necessary.

The Vietnam Deposit Insurance Corporation operates according to its Charter.

Article 3. The activities of the Vietnam Deposit Insurance Corporation are not for profit-making purposes.

The financial regime of the Vietnam Deposit Insurance Corporation is regulated by

Article 4. The operational capital of the Vietnam Deposit Insurance Corporation includes:

1. Charter capital of 1,000 billion VND, provided by the State;

2. Additional capital from annual deposit insurance premium income;

3. Other sources of capital.

Article 5. The Vietnam Deposit Insurance Corporation has the following tasks and powers:

1. Collecting deposit insurance premiums from participating organizations in accordance with regulations;

2. Paying out insured deposits up to the maximum limit set by regulations to depositors;

3. Monitoring, supervising, and inspecting compliance with government decrees on deposit insurance and safety regulations in the operations of participating organizations;

4. Supporting participating organizations facing the risk of non-payment but not yet requiring special control measures;

5. Participating in managing and liquidating the assets of participating organizations that have gone bankrupt;

6. Advising the State Bank and relevant government agencies on the development, amendment, and supplementation of policies on deposit insurance;

7. Promoting deposit insurance to the public; organizing training, education, and consulting on related business practices;

8. Cooperating with domestic and international organizations to enhance the operational capacity of the Vietnam Deposit Insurance Corporation and participating organizations;

9. Performing other tasks when assigned

Article 6. Organizational structure, management, and operation

1. Board of Directors:

a) The Board of Directors of the Vietnam Deposit Insurance Corporation consists of five members, including three full-time members who are the Chairman, a Vice-Chairman兼任总经理，和一名委员兼任稽核长；另外两名兼职委员是财政部副部长和国家银行副行长；

The appointment and removal of Board of Directors members are decided by The Prime Minister based on the proposal of the Governor of the State Bank of Vietnam and the Minister, Head of the Government Organizational and Cadre Affairs Board.

b) The tasks and powers of the Board of Directors are implemented according to the Charter of the Vietnam Deposit Insurance Corporation.

2. The Audit Committee consists of three full-time members and some part-time members, including one Chairperson. The members of the Audit Committee (excluding the Chairperson) are appointed and removed by the Chairman of the Board of Directors based on the recommendation of the Chairperson of the Audit Committee. The tasks and powers of the Audit Committee are implemented according to the Charter of the Vietnam Deposit Insurance Corporation.

3. The General Manager is the legal representative of the Vietnam Deposit Insurance Corporation.

Several Deputy General Managers assist the General Manager. The appointment and removal of Deputy General Managers are decided by the Governor of the State Bank of Vietnam based on the proposal of the Chairman of the Board of Directors.

The tasks and powers of the General Manager and the organizational structure of the management team are implemented according to the Charter of the Vietnam Deposit Insurance Corporation.

Article 7. The Governor of the State Bank of Vietnam is authorized by the Prime Minister

1. To supervise the activities of the Board of Directors of the Vietnam Deposit Insurance Corporation and has the authority:

- To attend meetings of the Board of Directors when necessary;

- To receive periodic and ad hoc reports, including audit reports from the Audit Committee and resolutions of the Board of Directors. In case of discovering irregularities in the reports or disagreeing with the content of the resolutions, directly work with the Board of Directors to review and resolve or adjust the content of the resolutions. If the irregularities in the operations and content of the resolutions of the Board of Directors violate the government decree on deposit insurance and other legal documents, report consideration and decision by the Prime Minister.

2. To perform specific tasks as assigned by

Article 8. THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.

Article 9. The Governor of the State Bank of Vietnam, the Minister, Head of the Government Organizational and Cadre Affairs Board, the Minister of Finance, and the heads of relevant agencies are responsible for guiding and implementing this Decision.