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THE
STATE BANK
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
03/2006/TT-NHNN
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Hanoi,
April 25, 2006
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CIRCULAR
GUIDING A NUMBER OF CONTENTS OF THE
GOVERNMENT'S DECREE No. 89/1999/ ND-CP OF SEPTEMBER 1, 1999, ON DEPOSIT
INSURANCE, AND DECREE No. 109/2005/ND-CP OF AUGUST 24, 2005, AMENDING AND
SUPPLEMENTING A NUMBER OF ARTICLES OF DECREE No. 89/1999/ND-CP
Pursuant to
the Government's Decree No. 89/1999/ ND-CP of September 1, 1999, on deposit
insurance (the Government's Decree No. 89/1999/ND-CP), and Decree No.
109/2005/ND-CP of August 24, 2005, amending and supplementing a number of
articles of Decree No. 89/1999/ND-CP of September 1,1999 (the Government's
Decree No. 109/2005/ND-CP), the State Bank of Vietnam hereby guides the
implementation of a number of contents of these Decrees as follows:
Section
I. GENERAL PROVISIONS
1. Subjects of application:
a/ Credit
institutions and organizations other than credit institutions that are licensed
to conduct a number of banking operations within the territory of the Socialist
Republic of Vietnam under the provisions of the Law on Credit Institutions and
take deposits from organizations or individuals must participate in compulsory
deposit insurance (hereinafter referred to as the insured organizations). This
Circular does not apply to deposit recipients that are allowed not to
participate in deposit insurance by the Government;
b/ Clients
eligible for deposit insurance are the subjects defined in Clause 2, Article 1
of the Government's Decree No. 109/2005/ND-CP that have money deposited at
insured organizations (hereinafter referred to as depositors);
c/ Vietnam
Deposit Insurance.
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a/ Deposits of
shareholders owning more than 10% of the charter capital or holding more than
10% of the voting share capital of such insured organizations;
b/ Deposits of
members of Managing Boards or Control Boards, general directors (directors), or
deputy general directors (deputy directors) of such insured organizations;
c/ Deposits
used as security for the performance of depositors' obligations;
d/ Deposits
used for the purchase of non-bearer valuable papers issued by insured
organizations.
Section
II. ISSUANCE AND REVOCATION OF DEPOSIT INSURANCE CERTIFICATES
3. Vietnam Deposit Insurance shall issue deposit insurance
certificates to, and revoke them from, insured organizations.
4.
Insured organizations must complete the procedures for participation in deposit
insurance before commencing their operation of taking deposits. Organizations
which are engaged in the operation of taking deposits but have not yet
participated in deposit insurance must complete the procedures for
participation in deposit insurance within 30 days after the effective date of
this Circular.
5.
A dossier of registration for participation in deposit insurance comprises:
a/ The written
registration for participation in deposit insurance, made according to a form
set by Vietnam Deposit Insurance;
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c/ The business
registration certificate;
d/ The
organization and operation charter;
e/ The list of
members of the Managing Board and Control Board, the general director
(director), appointed or approved by a competent state management agency;
f/ The latest
year's financial statement, certified by a competent state management agency or
audited (if the organization has operated for one year or more). Particularly
for financial statements of grassroots people's credit funds, the grassroots
people's credit funds shall bear self-responsibility for the statements'
truthfulness and accuracy;
g/ The
organization and operation charter or regulation of the managing unit of which
the insured organization is a member.
6.
Within 15 days after receiving complete dossiers of registration for
participation in deposit insurance, Vietnam Deposit Insurance shall issue
deposit insurance certificates to insured organizations and report thereon in
writing to the State Bank of Vietnam. The insured organizations must publish
such certificates on Vietnamese dailies for 3 (three) consecutive issues (at
least one central newspaper or one local newspaper of the place where its head
office, branch or transaction office is located).
7.
Deposit insurance certificates must be publicly posted up. Insured
organizations are strictly prohibited to forge, erase, transfer, lease or lend
their deposit insurance certificates.
8.
An insured organization must send the (notarized copies of) written approval of
the changes to Vietnam Deposit Insurance within 5 working days after making one
of the following changes:
a/ Contents and
scope of operation;
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c/ The
organization and operation charter;
d/ The organization
and operation charter or regulation of the managing unit of which the insured
organization is a member.
9.
Insured organizations shall have their deposit insurance certificates revoked
in the following cases where:
a/ Past 3
months after the payment date, they still fail to fully pay the insurance
premiums. In this case, Vietnam Deposit Insurance must send a written report
thereon to the State Bank for the latter to immediately issue decisions on
ceasing the mobilization of deposits by such insured organizations;
b/ The State
Bank issues documents terminating the operation of taking deposits;
c/ Competent
state agencies issue documents requesting the insured organizations to
terminate transactions for liquidation of assets or the court decides to carry
out procedures for asset liquidation.
10. Within 3 working days after issuing a decision on revocation
of a deposit insurance certificate, Vietnam Deposit Insurance must revoke the
deposit insurance certificate and publish the revocation on Vietnamese dailies
for 3 (three) consecutive issues (at least one central newspaper and one local
newspaper of the place where the head office, branch or transaction office of
the organization having its deposit insurance certificate revoked is located).
11. Insured organizations which have their deposit insurance
certificates revoked may resume their participation in deposit insurance and be
re-granted deposit insurance certificates in cases where they have fully paid
the insurance premiums according to regulations or where the Vietnam State Bank
has allowed them to resume taking deposits. In this case, the insured
organizations shall send documents requesting the resumption of their
participation in deposit insurance to Vietnam Deposit Insurance and publish the
re-grant of deposit insurance certificates on mass media according to the
provisions of Point 6 of this Circular.
12. Vietnam Deposit Insurance shall have to insure the insured
deposit amounts within 6 months after the issuance of decisions on revocation
of deposit insurance certificates of insured organizations.
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13. Insured organizations must pay to Vietnam Deposit Insurance
an annual premium representing 0.15% of the average deposit balance of all
deposits insured at such insured organizations.
14. Vietnam Deposit Insurance shall guide insured organizations
in calculating and paying deposit insurance premiums according to the
regulations on payment of insurance premiums as follows:
a/ Deposit
insurance premiums shall be calculated and paid quarterly into Vietnam Deposit
Insurance's account no later than the 20th day of the first month of
the quarter when deposit insurance premiums are collected.
b/ The average
deposit balance of all insured deposits of the quarter preceding the quarter
when deposit insurance premiums are paid shall serve as a basis for calculation
of deposit insurance premiums.
c/ The payable
amount of quarterly deposit insurance premium shall be calculated according to
the following formula:
P
=
S0
+ S3
+
S1
+ S2
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2
x
0.15
3
100
x 4
- P is the
amount of quarterly payable deposit insurance premium;
- S0
is the insured deposit balance at the beginning of the first month of the quarter
preceding the quarter when deposit insurance premiums are collected;
- S, S2
and S3 are the insured deposit balance at the end of the first,
second and third month of the quarter preceding the quarter when deposit
insurance premiums are collected;
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100
x 4
is the ratio
of the payable deposit insurance premium in a quarter of a year;
The amount of
payable deposit insurance premium shall be rounded to the unit of a thousand
Vietnam dong.
d/ Vietnam Deposit
Insurance shall have to examine the payment of deposit insurance premiums by
insured organizations and, if detecting inaccuracy in premium calculation or
payment, retrospectively collect the deficit premium amounts or refund the
overpaid premium amounts within 15 working days after the detection. Insured
organizations which violate regulations on the time limit for insurance premium
payment shall, apart from paying the deficit premium amounts, be subject to a
fine representing 0.1% (one thousandth) of the lately paid amount for each day
of late payment.
15. Thirty days after the deadline for deposit insurance premium
payment, if insured organizations fail to fully pay deposit insurance premiums,
including fines, Vietnam Deposit Insurance may:
a/ Request the
State Bank (for credit institutions) or the State Treasury or credit
institutions (for other organizations licensed to conduct a number of banking
operations) where the insured organizations open their accounts to make
via-account payment of insurance premiums and fines.
b/ Where the
insured organizations' account balance is insufficient for the via-account
payment mentioned above, Vietnam Deposit Insurance shall report thereon in
writing to the Vietnam State Bank and, past the 3-month duration, if the
insured organizations fail to fully pay the insurance premiums, handle such
organizations according to the provisions of Point 9 of this Circular.
16. Vietnam Deposit Insurance shall guide the process and
procedures related to the calculation and payment of deposit insurance premiums
(including fines) of insured organizations.
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17. Insured organizations shall have to send asorted reports to
Vietnam Deposit Insurance according to the latter's regulations.
18. Insured organizations must send written reports immediately
to Vietnam Deposit Insurance in the following cases where:
a/ They meet
with solvency deficiency: to report on causes of difficulties, expected consequences
and remedies; structures and amounts of insured deposits; estimates of
temporary deficit amounts for payment; proposals to Vietnam Deposit Insurance
and competent state management agencies for supporting measures (if necessary).
b/ There is a change
in members of Management Boards or Control Boards or general directors
(directors).
19. Within 90 days after the end of a fiscal year, insured
organizations shall have to send annual financial statements to Vietnam Deposit
Insurance.
20. Vietnam Deposit Insurance may inspect the insured
organizations' observance of the provisions of the Government's Decree No.
89/1999/ND-CP and Decree No. 109/2005/ND-CP.
21. In the course of supervising and inspecting insured
organizations, if detecting that insured organizations violate regulations on
safety in banking operations, Vietnam Deposit Insurance may request the insured
organizations to take remedies and, at the same time, send written reports
thereon immediately to the State Bank for monitoring and handling.
22. If deeming that insured organizations' activities may lead
to insolvency and/or great material losses or seriously affect other credit
institutions, Vietnam Deposit Insurance shall report thereon in writing
immediately to the State Bank and, at the same time, request the insured
organizations to take timely remedies.
23. Within 90 days after insured organizations have their
deposit insurance certificates revoked as provided for at Point a or b, Clause
9 of this Circular, the State Bank's Inspectorate shall conduct inspection in
order to make conclusions on their violations, which shall serve as a basis for
Vietnam Deposit Insurance to provide support or pay deposit insurance according
to the provisions of Sections V and VI of this Circular.
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24. Vietnam Deposit Insurance shall provide financial support
for insured organizations only after the State Bank gives written certification
that the insured organizations' dissolution or bankruptcy may cause serious
impacts on the safety of the financial and banking system and the political,
economic and social stability. Vietnam Deposit Insurance shall provide
financial support for the insured organizations in forms of loans or guarantee
or redemption of clients' debts at the insured organizations or in other forms
in accordance with the provisions of law.
25. The Management Board of Vietnam Deposit Insurance shall
consider and decide on forms of financial support.
26. Vietnam Deposit Insurance's financial supports shall be used
first of all to refund all other debts of insured organizations.
Section VI. MAKING PAYMENT TO INSURED DEPOSITORS
27. For insured organizations which are certified by competent
state agencies as being incapable of paying due debts, within 60 days after
competent state agencies request in writing the insured organizations to
terminate transactions for liquidation or after the court decides to carry out
procedures for liquidation of assets of the insured organizations according to
the provisions of law on bankruptcy, Vietnam Deposit Insurance shall have to
pay insurance money to persons depositing money at the insured organizations.
28. The payment of insurance sums to depositors shall be made as
follows:
28.1. Vietnam
Deposit Insurance shall have to immediately revoke the deposit insurance
certificates;
28.2. Within 10
working days after obtaining documents of competent state management agencies
or the court, insured organizations must submit to Vietnam Deposit Insurance dossiers
of request for payment of insurance money. Such a dossier comprises a list of
depositors and their respective deposit amounts at the insured organization; a
list of depositors and their deposit amounts proposed for payment by Vietnam
Deposit Insurance;
28.3. Within 5
working days after the insured organizations submit complete dossiers of
request for payment of deposit insurance sums, Vietnam Deposit Insurance shall
examine vouchers and books in order to determine accurately the payable
amounts;
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28.5. Vietnam
Deposit Insurance shall directly pay insurance sums to depositors or authorize
credit institutions to do so on the basis of authorization contracts according
to the provisions of law;
28.6.
Authorization contracts for payment of insurance sums between Vietnam Deposit
Insurance and credit institutions must be signed in accordance with the
provisions of law. Such contracts must clearly define the responsibilities of
credit institutions in the use of the money amounts transferred by Vietnam
Deposit Insurance for timely payment with correct amounts. Credit institutions
authorized by Vietnam Deposit Insurance to pay insurance sums must meet the
following conditions:
a/ Being
insured organizations;
b/ Having
satisfied criteria of safety in banking operation for at least 6 latest months;
c/ Having their
head offices or branches or transaction offices situated at locations
convenient for payment of insurance sums.
29. The maximum insurance sum to be paid by Vietnam Deposit
Insurance to all deposits (including both principal and interest) of a depositor
at an insured organization shall be 50 million Vietnam dong and determined as
follows:
a/ The balance
of all deposits (including both principal and interest) of a qualified
individual or organization insured under the provisions of law at an insured
organization shall be aggregated to determine the deposit insurance sum;
b/ The insured
deposits of account co-holders (including many individuals, one or many
individuals and an organization, or many organizations) shall be considered the
deposits of a depositor, and the maximum insurance sum payable to such deposits
(including both principal and interest) shall be VND 50 million and equally
divided to such account co-holders (except where the account co-holders make
other commitments or agreements in accordance with the provisions of law on the
use of accounts). If one of the above-said account co-holders has other
deposits insured at the same insured organization, such deposits shall be added
to the insurance sum into accounts of the co-holders to determine the insurance
sum to be paid to such organizations or individuals;
c/ Depositors
that have a total amount of insured deposits (including both principal and
interest) at an insured organization being equal to or less than VND 50 million
shall have all their deposits paid by Vietnam Deposit Insurance. Depositors
that have a total amount of insured deposits (including both principal and
interest) being over VND 50 million, the amount in excess of VND 50 million
shall be paid in the course of liquidation of the insured organization's assets
in accordance with the provisions of law on dissolution or bankruptcy;
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30. Insured depositors shall receive insurance money when they
fully meet the following conditions:
a/ Being on
lists of insured depositors, approved by the Management Board of Vietnam
Deposit Insurance;
b/ Having
written proposals enclosed with papers proving the lawful ownership of their
deposits at the insured organizations, together with their identity cards or
passports;
c/ Where
insurance sums are paid to representatives (representatives at law or
authorized representatives) or heirs of depositors, the misplaced persons must
have papers proving their lawful ownership of the insured deposits; the
recipients of deposit insurance sums must present all papers proving their
right to receive insurance money and lawful ownership of insured deposits,
passports or identity cards, etc., upon receipt of money.
d/ Vietnam
Deposit Insurance shall specify the dossiers, procedures and order of paying
deposit insurance to depositors.
31. Within ten years after a deposit insurer issues the first
notice on payment of insurance sums, deposit insurance money amounts without
recipients and without plausible reasons shall be added to the working capital
sources of the deposit insurers and the persons who used to have the right to
own the insured deposit amounts shall not have the right to request the deposit
insurers to pay them such amounts.
32. Vietnam Deposit Insurance shall become the creditor of
insured organizations for paid insurance money. Vietnam Deposit Insurance shall
be distributed the asset value according to the order of payment like for
depositors in cases where insured organizations are dissolved or go bankrupt according
to the provisions of law on dissolution or bankruptcy. Vietnam Deposit
Insurance may participate in managing and liquidating assets of the insured
organizations according to the provisions of law.
Section VII. INFORMATION EXCHANGE, INSPECTION AND SUPERVISION
COORDINATION BETWEEN VIETNAM DEPOSIT INSURANCE AND THE STATE BANK
33. Coordination in information exchange:
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- Quarterly
supply of information related to the operations of insured organizations;
- Quarterly
supply of information on insured organizations' observance of regulations on
deposit insurance and safety in banking operations;
- Biannual
supply of information on financial supports and payment of insurance sums to
insured organizations;
- Annual plan
on inspection of insured organizations' observance of the Government's
regulations on deposit insurance;
- Results of
annual classification and evaluation of insured organizations' observance of
regulations on deposit insurance;
- Irregular
information upon detecting that insured organizations are in danger of
insolvency or have great losses in capital or assets, adversely and seriously
affecting other credit institutions;
- Other
information on insured organizations' operations and law observance, if
necessary.
b/ The State
Bank shall supply Vietnam Deposit Insurance with information related to insured
organizations, specifically:
- The State
Bank's Inspectorate shall supply results of inspection and supervision of
insured organizations, including:
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+ Results of
annual classification of insured organizations;
+ Irregular
information on insured organizations' being in danger of insolvency or having
high ratios of overdue debts or great losses in capital or assets, adversely
and seriously affecting other credit institutions, within 10 days after the
Inspectorate's conclusions, and under the State Bank Governor's permission.
The supply of
information shall comply with the division of responsibilities for inspection
and supervision of credit institutions' head offices provided for in Circular
No. 04/2000/TT-NHNN3 of March 28, 2000, guiding the implementation of the
Government's Decree No. 91/1999/ND-CP.
- The
Department for Banks, the Department for Cooperative Credit Institutions and
the State Bank's provincial/municipal branches shall have to:
+ Notify the
establishment, and revocation of operation permits, of insured organizations
(within 3 working days after the issuance of decisions on such establishment or
revocation);
+ Notify the
partial or full termination of operations of insured organizations (within 3
working days after the issuance of decisions on such termination);
+ Notify the
separation, division, consolidation, merger and redemption of insured
organizations;
+ Notify the
placing of insured organizations under special control;
+ Supply all dossiers
related to insured organizations when such organizations have their operation
permits revoked by the State Bank.
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+ To coordinate
in supplying data on operation of credit institutions under the State Bank
Governor's permission;
+ To coordinate
in supplying data related to insured organizations which are assessed to be in
danger of insolvency.
34. In special cases, when deeming it necessary, upon detecting
that insured organizations are in danger of insolvency or have great material
losses, the State Bank's Inspectorate shall coordinate with Vietnam Deposit
Insurance in conducting on-the-spot inspections of such insured organizations.
Section VIII. IMPLEMENTATION PROVISIONS
35. This Circular takes effect 15 days after its publication in
"CONG BAO" and replaces the State Bank Governor's Circular No.
03/2000m"-NHNN5 of March 16, 2000, guiding the implementation of the
Government's Decree No. 89/1999/ND-CP of September 1, 1999, on deposit
insurance, Decision No. 1077/2001/QD-NHNN of August 27, 2001, amending and
supplementing a number of contents in Circular No. 03/2000/TT-NHNN5 of March
16,2000, and Circular No. 12/2003/TT-NHNN of December 23, 2003, amending and
supplementing Circular No. 03/ 2000/TT-NHNN5 of March 16, 2000, guiding the
implementation of the Government's Decree No. 89/ 1999/ND-CP of September 1,
1999, on deposit insurance.
36. The director of the Office, the director of the Department
for Banks and Non-Bank Credit Institutions, heads of units under the State
Bank, directors of the State Bank's provincial/municipal branches, the chairman
of the Management Board and the general director of Vietnam Deposit Insurance,
chairmen of managing boards and general directors (directors) of insured
organizations shall, within the ambit of their respective functions and tasks,
have to organize and guide the implementation of, and implement this Circular.
37. The supplementation or amendment of this Circular shall be
decided by the State Bank Governor.
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