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THE
STATE BANK
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
652/2001/QD-NHNN
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Hanoi,
May 17, 2001
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DECISION
ISSUING THE REGULATION ON THE METHOD OF CALCULATING AND
ACCOUNTING THE COLLECTED AND PAID INTERESTS OF THE STATE BANK AND CREDIT
INSTITUTIONS
THE STATE BANK GOVERNOR
Pursuant to December 12, 1997
Law No. 01/1997/QH10 on the State Bank of Vietnam and December 12, 1997 Law No.
02/1997/QH10 on Credit Institutions;
Pursuant to the Governments Decree No. 15/CP of March 2, 1993 on the tasks,
powers and State management responsibilities of the ministries and
ministerial-level agencies;
At the proposal of the director of the Accounting and Finance Department,
DECIDES:
Article 1.-
To issue together with this Decision the Regulation on the method of
calculating and accounting the collected and paid interests of the State Bank
and credit institutions.
Article 2.-
This Decision takes implementation effect as from July 1, 2001.
Article 3.-
The director of the Office, the director of the Accounting and Finance
Department and the heads of the units, of the State Bank, the directors of the
State Bank’s branches in
the provinces and centrally-run cities, the chairmen of the Managing Boards and
the general directors (directors) of credit institutions shall have to
implement this Decision.
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FOR
THE STATE BANK GOVERNOR
DEPUTY GOVERNOR
Nguyen Thi Kim Phung
REGULATION
ON THE METHOD OF CALCULATING AND ACCOUNTING THE COLLECTED
AND PAID INTERESTS OF THE STATE BANK AND CREDIT INSTITUTIONS
(Issued together with Decision No. 652/2001/QD-NHNN of May 17, 2001 of the
State Bank Governor)
Chapter I:
GENERAL PROVISIONS
Article
1.- Scope of regulation
This Regulation prescribes the
method of calculating and accounting the collected and paid interests arising
in the operation of the State Bank and credit institutions operating in Vietnam.
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In this Regulation, the following
terms are construed as follows:
1. Interest means a money sum
paid by the borrower, capital mobilizer or lessee to the lender, security
investor, depositor or lessor for the use of borrowed capital, mobilized
capital or leased assets. Interest is calculated on the basis of the capital
amount, capital use time and interest rate.
2. Accounting of estimated
revenue means the periodical calculation and accounting of the interests
receivable at a given time in future (receivable interests) into the income
account, regardless of the fact that such interests have not yet been collected
at the time of calculation and accounting.
3. Accounting of estimated
expenditure means the periodical calculation and gradual accounting of the
interests payable at a given time in future into the expenditure account,
regardless of the fact that such interests have not yet been paid at the time
of calculation and accounting.
4. Accounting of actual revenue
- actual expenditure means the accounting of the money amounts actually
collected or paid into the revenue or expenditure account.
5. Distribution accounting means
the calculation and gradual transfer (distribution) of pre-collected or prepaid
interests in each period into the revenue or expenditure account.
Article
3.- General principles for the calculation of collected and paid interests
of the State Bank and credit institutions for customers
1. The calculation of collected
or paid interests shall depend on the form of capital mobilization and the form
of lending or investment prescribed by the State Bank and credit institutions
or agreed with their customers (if any). There are three ways of calculating
the collected or paid interests:
a/ Periodical calculation of
collected or paid interests;
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c/ Calculation of post-collected
or postpaid interests.
2. In a number of special cases,
the calculation of collected or paid interests shall be as follows:
a/ For borrowed amounts for
which there have been debt-freezing decisions of competent authorities, the
interest arising in the debt-freezing duration (from the date the debt is
frozen till the expiry of the freezing duration or till the time the borrowed
amounts are dealt with) shall not be calculated and collected.
b/ If the borrowing customer is
an enterprise which goes bankrupt, is dissolved, divided, separated, merged,
consolidated or put for assignment, sale or business contracting under
decisions of competent State bodies, the calculation of collected or paid
interests shall comply with the relevant current law provisions.
c/ If the borrowing customer is
an individual who is dead or declared by court to be missing or dead and has no
heir to pay for his/her debt, the calculation of the lending interest shall
cease from the date the administration of the locality where the customer
resides certifies that the customer is dead or from the date the decision of
the court declaring such customer to be missing or dead, takes legal effect.
d/ Where the borrowing customers
still have overdue debts, the State Bank and credit institutions shall first
collect the principals and then interests thereon in full when the customers
have money.
Article 4.-
The State Bank shall apply the method of accounting of actual revenue - actual
expenditure with regard to collected or paid interests arising in its operation.
Article 5.-
Credit institutions shall have to determine and take responsibility for the
application of the method of calculating and accounting collected and paid
interests (the methods of estimated revenue; estimated expenditure; actual
revenue - actual expenditure; and distribution) arising in their operations in
compliance with the current financial regimes and the mechanisms of capital
mobilization, credit activities and other related professional activities.
Article 6.-
Periodical calculation and accounting of collected and paid interests,
applicable to credit institutions
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Article 7.-
The State Bank and credit institutions shall have to make all valid and lawful
vouchers; calculate and account in a timely and accurate manner the collected
and paid interests, and have the responsibility to inform customers of their
debits or credits according to current regulations.
Article 8.-
For interests collected or paid in foreign currencies, the State Bank and
credit institutions shall collect or pay such interests in the kinds of foreign
currencies already mobilized, lent or invested. Where they collect or pay
interests in a different foreign currency or in Vietnam dong, the agreements
between the State Bank or credit institutions and customers shall apply in
accordance with current law provisions on foreign exchange management.
Article 9.-
Elements for calculation of interests on deposits or loans
Interests on deposits or loans
shall be calculated on the basis of the following elements:
1. Interest rate: To be based on
the specific interest rate applicable to each round of capital mobilization or
type of loans inscribed in the deposit books or credit contracts;
2. Money amount: The amount to
be used as basis for calculation of the interest thereon is the amount actually
mobilized from the customer or actually lent to the customer:
a/ For cases of interest
calculation by the method of accumulated amount: The amount for interest
calculation is determined on the basis of the actual number of days of the
Credit balance on the deposit account or the actual number of days of the Debit
balance on the loan account for each day in the month. For days-off (holidays,
weekends), the last balance of the working day preceding such days shall be
used.
b/ For cases of interest
calculation in sum: To be based on the money amount (principal) deposited or
for debt payment.
3. Time: The time for
calculation of deposit or loan interests may be in day, month, quarter, year
or, for some type, in hour.
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+ One year has 360 days;
+ One year has 12 months;
+ One month has 30 days,
(regardless of whether the month has 28, 29, 30 or 31 days)
+ One day is 24 hours.
a/ If the day of interest
collection or payment coincides with a holiday or weekend day, it shall be
changed to the subsequent working day.
b/ For deposits or loans with a
term of one day or more, the interest calculation duration shall be counted
from the day of depositing or borrowing and exclude the day of money withdrawal
or debt payment.
Chapter II
SPECIFIC PROVISIONS
Article
10.- Interest calculation methods
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- Calculation in accumulated
amount
- Calculation in sum
1. Calculation in accumulated
amount: This method applies to short-term loans, payment deposits and demand
deposits. The interest calculation is made on the last days of the month (to be
specified by each bank) by multiplying (x) the whole months accumulated amount
by the monthly interest rate then dividing (: ) by 30 days according to the
following formula:
The
interest amount
=
The
months accumulated amount for interest calculation
x
Interest
rate (monthly)
30
days
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The
months accumulated amount for interest calculation
=
∑
The
Debit balance or Credit balance
x
The
actual number of days of Debit or Credit balance in the month
2. Calculation in sum: This
method applies to term deposits or short-, medium-, and long-term loans in sum
as agreed upon when lending. The interest calculation in sum must be based on
the deposited amounts or the debt payment amounts, the money-depositing or loan
use duration and the specific interest rate applicable to the money-depositing
or -borrowing duration. The calculation formula is as follows:
The
interest amount
=
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x
The
depositing or borrowing duration
x
The
interest rate applicable to the depositing or borrowing duration
The interest rate applicable to
the depositing or borrowing duration shall be set or agreed upon by the State
Bank or credit institutions and customers according to current regulations,
including:
+ Yearly interest rate;
+ Monthly interest rate;
+ Daily interest rate;
+ Hourly interest rate.
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1. The time of transfer to
overdue debts: To be counted from the day following the day the debt is due (if
the debt term is not extended or the debt payment period is not adjusted) as
inscribed in the credit contract.
2. The overdue debt interest
rate: To be calculated according to current regulations.
3. The overdue debt amount: is
the balance on the overdue Debit account.
Article
12.- Control of calculation of collected or paid interests
The controllers (chief
accountants or heads of accounting sections or authorized persons) shall have
to compare and check the interest calculation elements:
+ Interest rate;
+ Amount for interest
calculation;
+ Duration for interest
calculation;
+ The applied calculation method;
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2. On the interest collection or
payment vouchers handed over to customers there must be signatures of the chief
accountant or the head of the accounting section; and the general director
(director) or the authorized person.
Article
13.- Accounting of collected interests
1. Accounting of collected
interests by the method of actual revenue - actual expenditure: When collecting
interests, the State Bank and credit institutions shall account them in:
Account Debit: Relevant amounts
(cash, customers’ deposits.)
Account Credit: Relevant
collected interests (collected interests on deposits, collected interests on
loans)
2. Accounting of collected
interests by the method of distribution:
- When pre-collecting interests,
credit institutions shall account them in:
Account Debit: Relevant
amounts (cash, customers deposits)
The whole pre-collected
interest amount
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- Periodically, credit
institutions shall calculate and distribute gradually into their incomes, and
account them in:
Account Debit: Other payable
amounts (the above-said detailed accounts)
Account Credit: Relevant collected
interests (collected interests on deposits, collected interests on loans)
- If there is a provision or
agreement on the refund by the credit institutions to the customers of the
difference between the pre-collected interest amount and the actually-arising
interest amount (for the customers pay the loans before schedule, etc), when
this case occurs, the credit institutions shall account such difference in:
Account Debit: Other payable
amounts (the above-said detailed accounts)
Amount of interests refunded
by credit institutions to customers
Account Credit: Relevant
amounts (cash, customers deposits)
3. Accounting of collected
interests by the method of estimated revenue:
- Periodically, credit
institutions shall calculate the interest amounts to be collected in the period
and account them in:
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Interest amount to be
collected in the period
Account Credit: Relevant
collected interests
- When the time for interest
collection is due and the interests have been collected, credit institutions
shall account them in:
Account Debit: Relevant
amounts (cash, customers deposits…)
Interest amount already
collected
Account Credit: Relevant
accumulated interests estimated to be collected
4. For the receivable interests
already accounted as incomes but then recorded as decreased revenue according
to the prescribed regime, credit institutions shall account them as follows:
Account Debit: Relevant
collected interests
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Account Credit: Relevant accumulated
interests estimated to be collected
At the same time, credit
institutions shall account them for off-balance sheet monitoring:
Account entry - Interests not
yet collected - Interest amount not yet collected.
Article
14.- Accounting of paid interests
1. Accounting of paid interests
by the method of actual revenue - actual expenditure: When paying interests,
the State Bank and credit institutions shall account them in:
Account Debit: Relevant paid
interests (interests paid on deposits, on loans…)
Account Credit: Relevant amounts
(cash, customers deposits)
2. Accounting of paid interests
by the method of distribution:
- When prepaying interests,
credit institutions shall account them in:
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Whole interest amount already
prepaid
Account Credit: Relevant
amounts (cash, customers deposits)
- Periodically, credit institutions
shall calculate and gradually distribute the amount of interests already
prepaid into their expenditure and account them in:
Account Debit: Relevant paid
interests
Account Credit: Expenditure for
future distribution (the above-said detailed accounts)
- If there is a provision or
agreement on the recovery by credit institutions of the difference between the
prepaid interest amount and the actually-paid interest amount (for the
customers withdraw deposits before schedule, etc), when this case occurs,
credit institutions shall account such difference in:
Account Debit: Relevant
amounts (cash, customers deposits)
Amount of interests returned
by customers to credit institutions
Account Credit: Expenditure for
future distribution (the above-said detailed accounts)
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- Periodically, credit
institutions shall calculate the interest amounts payable in the period and
account them in:
Account Debit: Relevant paid
interests (paid interests on deposits, paid interests on loans,)
Interest amount payable in the
period
Account Credit: Relevant
accumulated interest amount estimated to be payable (accumulated interest
amount estimated to be payable on deposits; accumulated interest amount
estimated to be payable on loans)
- When the interest payment time
is due and the interests have been paid to the recipients, credit institutions
shall account them in:
Account Debit: Relevant accumulated
interest amount estimated to be payable
Interest amount already paid
to customers
Account Credit: Relevant
amounts (cash, customers’
deposits)
4. Where the payable interest
amount has been accounted as expenditure but then it is no longer required to
be paid or is exempt or reduced according to regulations, credit institutions
shall handle and account them in:
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Interest amount not required
to be paid
Account Credit: Relevant paid
interests
Chapter
III
IMPLEMENTATION PROVISIONS
Article 15.-
The supplement and amendment to this Regulation shall be decided by the State
Bank Governor