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THE STATE BANK
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 1407/2004/QD-NHNN
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Hanoi,
November 1, 2004
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DECISION
PROMULGATING THE REGULATION ON PUBLIC
DISCLOSURE OF FINANCIAL STATEMENTS BY JOINT-STOCK COMMERCIAL BANKS
THE STATE BANK GOVERNOR
Pursuant to December 12, 1997
Vietnam State Bank Law No. 01/1997/QH10 and Credit Institutions Law No.
02/1997/QH10; June 17, 2003 Law No. 10/2003/QH11 Amending and Supplementing a
Number of Articles of Vietnam State Bank Law; and June 15, 2004 Law No.
20/2004/QH11 Amending and Supplementing a Number of Articles of Vietnam State
Bank Law;
Pursuant to June 17, 2003 Accounting Law No. 03/2003/QH11;
Pursuant to the Government's Decree No. 166/1999/ND-CP of November 19, 1999 on
the financial regime applicable to credit institutions;
Pursuant to the Government's Decree No. 49/2000/ND-CP of September 12, 2000 on
organization and operation of commercial banks;
Pursuant to the Government's Decree No. 86/ND-CP of November 5, 2002 on tasks,
powers and State management responsibilities of the ministries and
ministerial-level agencies;
At the proposal of the director of the Department for Banks and Non-Bank Credit
Institutions,
DECIDES:
Article 1.- To promulgate
together with this Decision the Regulation on public disclosure of financial
statements by joint-stock commercial banks.
Article 2.- This Decision takes
effect 15 days after its publication in the Official Gazette.
Article 3.- The director of the
Office, the director of the Department for Banks and Non-Bank Credit
Institutions, the heads of the concerned units of Vietnam State Bank, the
directors of the State Bank's branches in the provinces or centrally-run cities
where joint-stock commercial banks are headquartered, the chairmen of the
managing boards and the general directors (directors) of the joint-stock
commercial banks shall have to implement this Decision.
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FOR THE STATE BANK GOVERNOR
DEPUTY GOVERNOR
Tran Minh Tuan
REGULATION
ON PUBLIC DISCLOSURE OF FINANCIAL STATEMENTS
BY JOINT-STOCK COMMERCIAL BANKS
(Promulgated
together with the State Bank Governor's Decision No. 1407/2004/QD-NHNN of
November 1, 2004)
Chapter I
GENERAL PROVISIONS
Article 1.- Objects and scope of
regulation
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2. The public disclosure of
financial statements by joint-stock commercial banks aims to help investors and
clients grasp each bank's practical operation, making their evaluation and
consideration before establishing economic relations and conducting
transactions with joint-stock commercial banks.
3. Information contents in
financial statements to be disclosed by joint-stock commercial banks are
prescribed in Article 3 of this Regulation.
Article 2.- Interpretation of
terms
In this Regulation, the
following terms are construed as follows:
1. Accounting period means a
period determined from the time when accounting units start making entries in
accounting books to the time they finish the making of entries in accounting
books and close the accounting books for making financial statements.
Accounting periods include annual accounting period, quarterly accounting
period and monthly accounting period and are prescribed as follows:
a/ An annual accounting period
lasts for 12 months, counting from the beginning of January 1 till the end of
December 31 of the calendar year;
b/ A quarterly accounting period
lasts for 3 months, counting from the beginning of the first day of the first
month of a quarter till the end of the last day of the last month of such
quarter;
c/ A monthly accounting period
lasts for one month, counting from the beginning of the first day till the end
of the last day of the month.
2. Accounting regime means
regulations guiding the accounting in a domain or some specific jobs,
promulgated by the agency in charge of State management over accounting or by
organizations authorized by the agency in charge of State management over
accounting.
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4. Calculation units used in
accounting: The currency unit shall be Vietnam dong (with national symbol being
"đ" and international symbol being "VND"). For economic or
financial operations where foreign currencies are used, arising money amounts
must be recorded in original foreign currencies and Vietnam dong converted at
the foreign exchange rates announced by Vietnam State Bank at the time such
amounts arise, except otherwise prescribed by law. For foreign currencies
having no exchange rates with Vietnam dong, they must be converted through
another foreign currency which has an exchange rate with Vietnam dong.
5. Financial statements:
a/ Financial statements shall be
made according to the accounting standards and the accounting regime, and used
for summing up and explaining the economic and financial status of accounting
units.
b/ Financial statements of
joint-stock commercial banks include:
- Accounting balance sheet;
- Report on business operation
results;
- Cash flow report;
- Financial statement
explanation.
c/ Financial statements must be
signed and affixed seals by their makers, chief accountants and general
directors (directors) of joint-stock commercial banks. Persons who sign and
affix seals on financial statements must take full responsibility before law
for the contents of statements.
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SPECIFIC PROVISIONS
Article 3.- Types of financial
statement and contents of principal information in financial statements
publicly disclosed by joint-stock commercial banks
1. Information contents in
financial statements publicly disclosed by joint-stock commercial banks on a
quarterly basis shall be the quarterly accounting balance sheets (made
according to a set form, not printed herein). Depending on their practical
conditions and situation, joint-stock commercial banks may decide by themselves
on the public disclosure of information contents in quarterly financial
statements.
2. Information contents in
financial statements publicly disclosed by joint-stock commercial banks on an
annual basis shall be the annual accounting balance sheets and reports on
business operation results (made according to a set form, not printed herein).
Joint-stock commercial banks must publicly disclose information contents in
annual financial statements.
Annual financial statements of
joint-stock commercial banks, when being publicly disclosed, must be enclosed
with conclusions of independent auditing organizations.
3. Joint-stock commercial banks
which have already been listed on the securities market, apart from publicly
disclosing information according to this Regulation, shall have to publicly
disclose other information according to law provisions on securities.
Article 4.- Form of and time
limit for disclosure
1. Form of information
disclosure: Joint-stock commercial banks must publicly disclose information in
their annual financial statements at their head offices and operation places,
and publish them on central and local newspapers for three consecutive issues.
Besides, joint-stock commercial banks shall decide by themselves to publicly
disclose their financial statements' information on their websites;
publications (annual statements...); notify them in writing to the State
management agencies; disclose information through press conferences; or
announce information through central and local radio or television stations.
2. Time limits for publicly
disclosing financial statements:
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2.2. Joint-stock commercial
banks may choose by themselves the form and time limit for publicly disclosing
information in their quarterly financial statements.
3. Within 10 working days after
the date of publicly disclosing financial statements according to the
provisions of Clause 2 of this Article, joint-stock commercial banks shall have
to send the originals or certified copies of financial statements already
publicly disclosed to the State Bank's branches in the provinces or
centrally-run cities where they are headquartered and Vietnam State Bank (the
Department for Banks and the State Bank Inspectorate).
4. Joint-stock commercial banks
shall have to answer questions at requests of the State management agencies,
their stockholders, clients or partners regarding the publicly disclosed
information contents.
Article 5.- Regulations on
information disclosure
1. Joint-stock commercial banks
must disclose information which is accurate and true to their practical
organization and operation situation.
2. Joint-stock commercial banks
must not disclose changes in the already disclosed information contents on
their practical organization and operation without having justified plausible
reasons therefor and obtained written approval thereof from the State Bank's
branches in the provinces or centrally-run cities where they are headquartered.
3. Joint-stock commercial banks
must not disclose contradictory information.
Article 6.- Cases of delayed or
postponed information disclosure
1. In cases where they cannot
disclose information in their financial statements within the prescribed time
limit, joint-stock commercial banks shall have to report such in writing to the
State Bank's branches in the provinces or centrally-run cities where they are
headquartered, clearly stating the reasons for failure to disclosure
information within the prescribed time limit and the estimated time limit for
information disclosure to the State Bank Governor for consideration and
decision. Only after obtaining the State Bank Governor's approval, can
joint-stock commercial banks delay the information disclosure.
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a/ Such information may affect
security and defense, social order and safety, national interests and safety of
the banking system;
b/ Such information may reveal
business secrets or cause harms to joint-stock commercial banks;
c/ Such information may cause
misunderstandings and affect interests of investors.
Article 7.- Organizations and individuals
that commit acts of violating this Regulation shall, depending on the nature
and seriousness of their violations, be handled according to law provisions.
Article 8.- Responsibilities of
the State Bank's branches in the provinces or centrally-run cities: To urge and
request joint-stock commercial banks headquartered in their localities to
publicly disclose their annual financial statements in strict compliance with
the provisions of Article 4 of this Regulation.
Article 9.- Responsibilities of
the units at the head office of the State Bank:
1. The Department for Banks and
Non-Bank Credit Institutions:
a/ To guide the State Bank's
branches in the provinces or centrally-run cities and joint-stock commercial
banks in implementing this Regulation.
b/ To propose measures for
handling matters related to the public disclosure of financial statements of
joint-stock commercial banks.
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3. Other concerned units under
the State Bank of Vietnam shall have to examine and report to the State Bank
Governor on matters related to the public disclosure of financial statements by
joint-stock commercial banks.
Article 10.- The amendment and
supplementation of the provisions of this Regulation shall be decided by the
State Bank Governor.