Decision No. 61/2006/QĐ-NHNN Issuing the Regulation on Management of State Support Capital for the People's Credit Fund System at the Central People's Credit Fund

Pursuant to …;

ISSUING REGULATIONS ON THE MANAGEMENT OF STATE SUPPORT CAPITAL FOR THE RURAL CREDIT UNION SYSTEM AT THE CENTRAL RURAL CREDIT UNION

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam 2003;
Pursuant to the Law on Credit Organizations 1997 and the Law Amending and Supplementing Certain Provisions of the Law on Credit Organizations 2004;
Pursuant to the Law on Cooperatives 2003;
Pursuant to Decree No. 86/2002/NĐ-CP dated November 5, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of ministries and ministerial-level agencies;
Pursuant to Decree No. 52/2003/NĐ-CP dated September 15, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;
Pursuant to Decree No. 48/2001/NĐ-CP dated August 13, 2001 of the Government on the organization and operation of rural credit unions; Decree No. 69/2005/NĐ-CP dated May 26, 2005 amending and supplementing certain provisions of Decree No. 48/2001/NĐ-CP;
Considering the proposal of the Director of the Department of Cooperative Credit Organizations

DECISION:

Article 1. These Regulations are promulgated together with this Decision for the management of state support capital for the rural credit union system at the Central Rural Credit Union.

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

Article 3. The Heads of the Office, the Directors of the Department of Cooperative Credit Organizations, the Heads of relevant units under the State Bank of Vietnam, the Chairmen of the Board of Management, General Directors of the Central Rural Credit Union, and representatives of state support capital for the rural credit union system at the Central Rural Credit Union are responsible for implementing this Decision.

 

 

REGULATIONS

REGULATIONS ON THE MANAGEMENT OF STATE SUPPORT CAPITAL FOR THE RURAL CREDIT UNION SYSTEM AT THE CENTRAL RURAL CREDIT UNION
(Issued together with Decision No. 61/2006/QĐ-NHNN dated December 29, 2006 of the Governor of the State Bank of Vietnam)

Chapter 1:
GENERAL PROVISIONS

Article 1. Scope of Regulation

These Regulations provide for the management by the State Bank of Vietnam (hereinafter referred to as the State Bank) of the state support capital for the rural credit union system at the Central Rural Credit Union (hereinafter referred to as the Central Rural Credit Union).

Article 2. Interpretation of Terms

1. State support capital for the rural credit union system at the Central Rural Credit Union (hereinafter referred to as state support capital) is the capital support provided by the Government which is included in the charter capital of the Central Rural Credit Union; This capital is allocated to the Central Rural Credit Union for use to support the operations of the entire rural credit union system. 2. The representative of state support capital (hereinafter referred to as the representative) is the person appointed by the Governor of the State Bank to work full-time or concurrently at the Central Rural Credit Union to exercise the rights and obligations of the State Bank regarding state support capital with the aim of ensuring the safety and effective use of state support capital for the rural credit union system.

Article 3. Management and Utilization of Earnings from State Support Capital

The management and utilization of earnings from state support capital shall be regulated specifically by the State Bank and submitted to the Government for approval for each period.

Article 4. Principles for Appointing Representatives

1. The Governor of the State Bank appoints two to three representatives to participate in the governance, management, and oversight of the Central Rural Credit Union, including one person who will be primarily responsible.

2. When participating in the governance, management, and oversight of the Central Rural Credit Union, the representatives must comply with regulations on nomination and election; the governance, management, and oversight provisions of the Charter of the Central Rural Credit Union, these Regulations, and related laws.

3. The term of office of the representatives at the Central Rural Credit Union is determined by the Governor of the State Bank according to the term of the Board of Management and Supervisory Board specified in the Charter of the Central Rural Credit Union. In cases where the term of office has not yet expired but it is deemed necessary, the Governor of the State Bank may decide to replace the representative; the newly appointed representative will continue to hold the position of the replaced representative. The newly appointed representative is responsible for reporting to the Board of Management and Supervisory Board of the Central Rural Credit Union to submit to the nearest General Assembly for a decision to relieve the replaced representative of their duties and elect the newly appointed representative in accordance with the regulations.

3. The term of the representative at the Central Credit Cooperative Fund shall be decided by the Governor of the State Bank for each term of the Management Board and Supervisory Board as stipulated in the Charter of the Central Credit Cooperative Fund. In cases where the representative's term has not yet expired but it is deemed necessary, the Governor of the State Bank may decide to replace the representative; the newly appointed representative shall continue to hold the position of the replaced representative. The newly appointed representative shall have the responsibility to report to the Management Board and Supervisory Board of the Central Credit Cooperative Fund to submit to the nearest Member Assembly for a decision on the removal of the replaced representative and the election of the newly appointed representative in accordance with the regulations.

Chapter 2:
SPECIFIC PROVISIONS

Section I: RIGHTS AND OBLIGATIONS OF THE STATE BANK TOWARDS THE STATE SUPPORT CAPITAL

Article 5. Rights and obligations of the State Bank

1. Request representatives to report periodically or urgently on the business operation situation and financial status of the Central Credit Cooperative Fund; Assign tasks and require representatives to protect the legitimate rights and interests of the State at the Central Credit Cooperative Fund; Request representatives to report on the performance of their duties, powers, and responsibilities; Request representatives to report on the use of state support capital for implementing the long-term and annual operational goals, strategies, and plans of the Central Credit Cooperative Fund according to the guidance of the State Bank.

2. Submit to the Government for decision on increasing or recovering state support capital at the Central Credit Cooperative Fund in accordance with the provisions of the law.

3. Based on the financial reports of the Central Credit Cooperative Fund and the reports of representatives, prepare analytical and evaluation reports on the business operation situation and financial status of the Central Credit Cooperative Fund to be sent to the Ministry of Finance every six months and annually.

4. Direct representatives to take timely measures to protect the state support capital when the Central Credit Cooperative Fund incurs losses, loses capital, must be dissolved, or faces bankruptcy.

5. Report to the Government on the recovery of state support capital when the Central Credit Cooperative Fund is dissolved or declared bankrupt in accordance with the provisions of the law.

6. Appoint, dismiss, set salaries, increase salaries, and discipline representatives.

7. Reward representatives.

8. Inspect and supervise the Central Credit Cooperative Fund regarding the management and use of state support capital; Through inspection work, detect and handle violations in the management and use of state support capital according to the provisions of the law; Supervise the activities of representatives, identify shortcomings, weaknesses, and illegal acts of representatives to prevent and correct them promptly.

9. Submit to the Government for decision on the management and use of the income from state support capital.

10. Organize accounting records to monitor and supervise the state support capital; Receive and manage the income from state support capital (if any).

11. Perform other rights and obligations as prescribed by law.

Article 6. Responsibilities of units under the State Bank

1. The Department of Cooperative Credit Organizations is responsible for advising the Governor to implement the rights and obligations stipulated in Clauses 1, 2, 3, 4, 5, and 9 of Article 5 of this Regulation and perform other tasks assigned by the Governor of the State Bank in specific cases.

2. The Department of Organization and Cadres is responsible for advising the Governor to implement the rights and obligations stipulated in Clause 6 of Article 5 of this Regulation.

3. The Department of Mobilization and Awards is responsible for advising the Governor to implement the rights and obligations stipulated in Clause 7 of Article 5 of this Regulation.

4. The Banking Inspectorate is responsible for advising the Governor to implement the rights and obligations stipulated in Clause 8 of Article 5 of this Regulation.

5. The Accounting and Finance Department is responsible for advising the Governor to implement the rights and obligations stipulated in Clause 10 of Article 5 of this Regulation.

Section II: REPRESENTATIVES

Article 7. Standards for representatives

Representatives must meet the following standards:

1. They must be civil servants of the State Bank.

2. They must have good moral character and sufficient health to fulfill their duties.

3. They must understand laws and have a sense of compliance with the law.

4. They must hold a bachelor's degree or higher in one of the following fields: economics, finance, accounting, auditing, banking.

5. They must have the following work experience:

a) In the case where the representative is nominated to run for the position of Chairman of the Board of Directors of the Central Credit Union, they must have at least five years of work experience in the banking sector; and have held a management or executive position at an organization within the banking sector for at least two years.

b) In the case where the representative is nominated to run for the position of Head of Supervisory Board or full-time supervisor of the Central Credit Union, they must have at least five years of work experience in one of the following fields: accounting, auditing, finance, banking.

c) In the case where the representative is nominated to be appointed as General Director of the Central Credit Union, they must have at least five years of work experience in the banking sector; and have held management or executive positions at organizations within the banking sector for at least three years.

6. They must not be the father, mother, wife, husband, child, brother, sister, or half-sibling of individuals who are members of the Board of Directors, members of the Supervisory Board, General Director, Chief Accountant, and Cashier of the Central Credit Union; and must not have capital contribution, loan, or purchase and sale contract relationships with the Central Credit Union.

7. Representatives working exclusively for the Central Credit Union shall not directly participate in the management, operation, and supervision of other legal entities on a full-time basis.

Article 8. Powers of representatives 

1. They are entitled to participate in the election process for the management, supervisory, and operational bodies of the Central Credit Union in accordance with the law and the Charter of the Central Credit Union.

2. They are entitled to participate in elections as members of the Central Credit Union and have equal rights as other members in all activities of the Central Credit Union.

3. They are entitled to attend member congresses and meetings to discuss and vote on matters of the Central Credit Union; to debate and vote on resolutions of the member congress; to criticize, question, and make recommendations regarding the activities of the Board of Directors, Supervisory Board, and operational bodies of the Central Credit Union. In cases where multiple representatives participate in the Board of Directors, Supervisory Board, and operational bodies of the Central Credit Union, they must consult and reach a consensus when speaking and voting.

4. They may require the Central Credit Union to implement directives from the State Bank concerning the transfer, management, and utilization of state-supported capital.

5. Representatives participating exclusively in the Board of Directors, Supervisory Board, and operational bodies of the Central Credit Union are entitled to receive salaries, allowances of a salary nature, bonuses, and other benefits paid by the Central Credit Union.

6. Representatives participating part-time (in兼任) in the Board of Directors and Supervisory Board of the Central Credit Union are entitled to receive salaries and allowances of a salary nature (excluding responsibility allowances) paid by the State Bank; responsibility allowances, bonuses, and other benefits are paid by the Central Credit Union.

7. They are entitled to request the State Bank and the Central Credit Union to create favorable conditions to fulfill assigned tasks.

8. They shall exercise other rights as prescribed by law, the Charter of the Central Credit Union, and the State Bank.

Article 9. Obligations of the Representative

1. Monitor, supervise and analyze, evaluate the business operation situation and financial situation in accordance with the laws and the Charter of the Central Credit Cooperative Fund; In case of discovering potential losses or capital loss, report promptly to the State Bank.

2. Fully implement all reports as stipulated in Article 11 of this Regulation on the situation and results of business operations and finance of the Central Credit Cooperative Fund, and on the implementation of other tasks assigned by the State Bank; Be responsible for the authenticity of these reports.

3. Follow up, urge and implement the collection of interest from state-supported capital according to the guidance of the State Bank.

4. Study and propose directions and measures for their activities at the Central Credit Cooperative Fund to be submitted to the Governor of the State Bank for approval to guide the activities of the Central Credit Cooperative Fund towards the correct objectives and orientations of the State Bank. When detecting that the Central Credit Cooperative Fund deviates from its objectives and orientations, report to the State Bank and propose solutions to rectify the situation. After being approved by the State Bank, organize the implementation to ensure that the Central Credit Cooperative Fund adheres to the determined objectives and orientations.

5. Bear responsibility before the State Bank for the tasks assigned, aiming to preserve capital, use capital effectively, continuously accumulate to develop and sustain the system of People's Credit Cooperatives.

6. Implement other tasks as directed by the State Bank, in accordance with the laws and the Charter of the Central Credit Cooperative Fund.

Article 10. Rewards and Disciplinary Measures for Representatives

1. The representative shall be rewarded under the general system of competition and rewards for officials and civil servants of the State Bank.

2. In cases where representatives are negligent, abuse their duties and powers, causing damage to the State Bank and the Central Credit Cooperative Fund, they must bear responsibility and compensate for material losses in accordance with the law.

Article 11. Reporting System of Representatives

1. The representative is responsible for preparing and submitting to the State Bank (Department of Cooperative Credit Institutions) the following types of reports:

a) Annually submit the Central Credit Cooperative Fund file (Appendix attached to this Regulation) before April 30 of the following year.

b) Quarterly submit a report analyzing the management, control, and operation situation, evaluating the implementation of objectives and operational orientations, the management and use of capital, business results, profit distribution (if any) of the Central Credit Cooperative Fund; Propose recommendations and measures to resolve difficulties and obstacles to effectively utilize state-supported capital. The deadline for submitting the report is before the 15th day of the first month of the next quarter.

2. The representative must report to the State Bank on the operation situation of the Central Credit Cooperative Fund in cases where issues arise affecting the objectives and results of the Central Credit Cooperative Fund, requiring advice or when requested by the State Bank.

Chapter 3:
IMPLEMENTING PROVISIONS

Article 12. Implementation Organization

1. Departments, Bureaus, and related units of the State Bank, based on their assigned functions and responsibilities, have the duty to advise the Governor in organizing the implementation of the State Bank's rights and obligations regarding state-supported capital as stipulated in this Regulation and other relevant laws.

2. Those individuals appointed by the State Bank to represent state-supported capital for the system of People's Credit Cooperatives at the Central Credit Cooperative Fund are responsible for implementing in accordance with the provisions of this Regulation.

 

CENTRAL PEOPLE'S CREDIT COOPERATIVE FUND FILE

(Annual Report...)

1. Business License Number: ... Date:... Month... Year...

2. Business Registration Certificate Number: ... Date:... Month... Year...

3. Content of Activities:...

4. Head Office Address:...

Telephone:... Fax:...

5. Registered Capital:... VND

1- Total Shareholders' Equity:Tr.đ Among which: - State-Supported CapitalTr.đ - Capital Contribution from Basic People's Credit CooperativesTr.đ - Capital Contribution from State-Owned Commercial BanksTr.đ - Other Members' Capital ContributionsTr.đ 2- Revenue AchievedTr.đ Among which: - Credit ActivitiesTr.đ - Other ActivitiesTr.đ 4- Pre-Tax Profit (Profit (+), Loss (-))Tr.đ 5- Post-Tax ProfitTr.đ 6- Dividend Yield on State-Supported CapitalTr.đ 7- Total Amounts Due to the BudgetTr.đ Among which Various TaxesTr.đ 8- Average Annual Number of EmployeesPerson 9- Total Wages and Salaries PaidTr.đ 10- BonusesTr.đ 11- Total Income (9+10)Tr.đ 12- Average Income Per Person Per MonthTr.đ