Chương II Nghị định 93/2017/NĐ-CP : Quản lý và sử dụng vốn, tài sản

Chapter II

CAPITAL, ASSET MANAGEMENT AND USE

Article 4. Capital of credit institutions, branches of foreign banks

1. Equity:

a) Charter capital or financed capital;

b) Differences from re-assessment of assets and differences due to the foreign exchange rate;

c) Share premium;

d) Funds: Reserve fund for charter capital addition, fund for investment in development, financial reserve fund;

dd) Undistributed accumulated profits, unrealized accumulated losses;

e) Other capital owned by credit institutions, branches of foreign banks.

2. Raised capital:

a) Capital from deposit of organizations and individuals; Capital from the issuance of valuable papers;

b) Capital from investment authorization;

c) Loan from domestic and foreign credit institutions and financial institutions;

d) Loan from the State bank of Vietnam.

3. Other kinds of capitals as prescribed by law.

Article 5. Actual value of charter capital and provided capital

1. The actual value of charter capital or provided capital is calculated by the charter capital or provided capital and share premium plus (minus) the undistributed accumulated profits (unrealized accumulated losses) recorded in accounting books.

2. During the operation, branches of foreign banks and credit institutions must sustain the actual value of the charter capital or the provided capital at least equal to the legal capital prescribed by the Government.

3. Branches of foreign banks and credit institutions must publicly announce the new charter capital or provided capital when the charter capital or provided capital is changed.

Article 6. Utilization of capital and assets

1. Branches of foreign banks and credit institutions are entitled to use their capital for business according to the Law on credit institutions and other related regulations on the principles of capital growth and adequacy.

2. Branches of foreign banks and credit institutions are entitled to change the structure of their capital and assets serving the business development according to the provisions of law.

3. Credit institutions are entitled to buy and invest on fixed assets in direct serve of business operation in the principle that the remaining value of the fixed assets does not exceed 50% of the charter capital and reserve fund for charter capital addition. Credit institutions must comply with the regulations on construction investment management and other related regulations. The procurement and investment of fixed assets of wholly state-owned credit institutions and partially state-owned credit institutions shall comply with the regulations applied to state-owned enterprises and stated-invested enterprises.

The asset and capital mobilization among the branches or among the independent associate companies of a credit institution must comply with the Charter of the credit institution.

4. Branches of foreign banks are entitled to buy and invest on fixed assets in direct serve of business operation in the principle that the remaining value of the fixed assets does not exceed 50% of the provided capital and reserve fund for provided capital addition. Branches of foreign banks must comply with the regulations of Vietnam on construction investment management and other related regulations.

Article 7. Capital contribution, purchase of shares and transfer of stakes by credit institutions

1. The capital contribution, purchase of shares and transfer of stakes by credit institutions shall comply with the Law on credit institutions and other related regulations.

2. Credit institutions are only allowed to use their charter capital and reserve funds for contributing capital to and purchasing shares of other credit institutions or enterprises as prescribed by the Law on credit institutions and other related regulations.

3. The competence to decide on plans on contribution and purchase of shares of other enterprises or credit institutions; The plan on transfer of the invested capital portions shall comply with the Law on credit institutions, related regulations and the charters of the credit institutions. Wholly state-owned credit institutions and partially state-owned credit institutions must comply with regulations and law on management and utilization of state capital invested in the enterprise’s manufacturing and business activities.

4. A credit institution must not contribute to or purchase shares of other enterprises or credit institutions which are its contributors.

Article 8. Capital adequacy assurance

Branches of foreign banks and credit institutions are responsible for implementing the provisions on capital adequacy assurance as follows:

1. Manage, use capital and assets, distribute profits, and perform financial management and accounting policy in accordance with the provisions in this Decree and other related law provisions.

2. Implement the provisions on operational safety under the Law on credit institutions and other relevant law provisions. In case a credit institution or foreign bank branch fails to reach or likely fails to reach the minimum capital safety ratio according to the Law on credit institutions and the guidelines of the State bank of Vietnam, within a maximum duration of 01 month, it shall report to the State bank of Vietnam the remedies to reach the minimum capital safety ratio as follows:

a) The plan on transfer of the invested capital portions;

a) Plans on increasing charter capital; provided capital;

c) Other plans.

3. Purchase mandatory asset insurance.

4. Participate in deposit insurance and preservation as prescribed by the Law on credit institutions, the Law on deposit insurance and other relevant regulations and announce the participation in deposit insurance and preservation at the head office and branches.

5. Take actions against the losses according to Article 12 this Decree.

6. Record to the expense of loan loss reserve according to the Law on credit institutions, Law on enterprises and other related regulations.

7. Other measures for assuring the capital adequacy as prescribed by law.

Article 9. Stocktaking

1. Branches of foreign banks and credit institutions must carry out stocktaking in the following cases:

a) At the end of the fiscal year;

b) Division, partial division, acquisition, consolidation and transform of legal form;

c) Stocktaking to determine asset losses due to natural disaster, enemy sabotage or other events according to management request of the credit institution and foreign bank branch;

d) At the request of competent authorities.

2. The reasons for and people in charge of the lack or the excess of assets must be identified and settled.

Article 10. Asset re-assessment

1. Branches of foreign banks and credit institutions must re-evaluate their assets in the following cases:

a) The reassessment is requested by a competent authority;

b) It changes its legal form and diversifies the forms of ownership;

c) It makes external investment from assets, recalls the assets after the suspension of the external investment, in which case the assets used for external investment must be reassessed;

d) Other cases as prescribed by law.

2. The re-assessment of assets and accounting of the increased or decreased value due to the asset re-assessment specified in Clause 1 this Article must comply with law provisions depending on each specific case.

Article 11. Fixed asset depreciation

1. Branches of foreign banks and credit institutions must calculate the fixed asset depreciation as specified by law provisions on enterprises.

2. Branches of foreign banks and credit institutions are entitled to use the capital from the fixed asset depreciation for re-investing in the replacement of fixed assets and in other business purposes as prescribed by law.

Article 12. Asset loss settlement

Branches of foreign banks and credit institutions must identify the reasons and responsibilities for the loss of assets as follows:

1. The person that causes the asset loss must pay compensation if the reason is subjective. The authority to decide the amount of compensation shall comply with the Charter of credit institutions and branches of foreign banks. The handling of responsibilities of the person caused the asset loss shall comply with the provisions of law.

2. Settle the loss in accordance with the insurance contract for insured assets.

3. Use the reserve fund extracted from the expenses to cover the loss as prescribed by law.

4. The deficient value of the loss after covered by the compensation from individuals, organizations the insurer and the provisions extracted from the expenses shall be covered by the financial reserve funds of branches of foreign banks and credit institutions. If the financial reserve fund cannot cover, the deficient amount shall be recorded as other expenses in the period.

Article 13. Leasing assets

Branches of foreign banks and credit institutions are entitled to lease out their assets according to the Law, ensuring the capital adequacy, efficiency and capital growth.

Article 14. Selling and transfer of assets

1. Branches of foreign banks and credit institutions are entitled to sell or transfer their assets in order to recover the capital and ensure the business efficiency.

2. The asset sale and transfer of branches of foreign banks and credit institutions must comply with the Law on credit institutions, other related provisions of law and their Charter. Wholly state-owned credit institutions must comply with regulations and law on sale of assets in state-owned enterprises.

Article 15. Asset liquidation

1. Branches of foreign banks and credit institutions are entitled to liquidate low-quality assets, damaged assets unable to be restored; technologically backward assets not being used or not being efficiently used that cannot be sold as intact items; assets unable to be used after their use terms expire.

2. The authority to decide on liquidation of assets must comply with the Law on credit institutions, other related provisions of law and the Charter of credit institutions and branches of foreign banks. Wholly state-owned credit institutions must comply with regulations and law on liquidation of assets in state-owned enterprises.

3. The Liquidation council must be established when liquidating assets of branches of foreign banks and credit institutions. For assets required to be put up for auction when liquidated, branches of foreign banks and credit institutions must hold auctions as prescribed by law.