Circular 36/2019/TT-NHNN use of fund for implementing national monetary policy

CIRCULAR

On management and use of

Fund for implementing national monetary policy

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Pursuant to the Law No. 46/2010/QH12 dated June 16, 2010 on the State Bank of Vietnam;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law on amending a number of Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Decree No. 16/2017/ND-CP dated 11 November 2017 of the Government, providing for functions, duties, authorities and organizational structure of the State Bank of Vietnam;

Pursuant to the Decision No. 07/2013/QD-TTg dated January 24, 2013 of the Prime Minister on financial regulation of the State Bank of Vietnam;

At request of the Director of the Department of Financial and Accounting;

The Governor of the State Bank of Vietnam hereby promulgate the Circular on management and use of the Fund for implementing national monetary policy.

Article 1. Scope of regulation

This Circular prescribed the management and use of the Fund for implementing national monetary policy.

Article 2. Subjects of application

1. The State Bank of Vietnam.

2. Financial institutions and other organizations related to using of the fund for implementing national monetary policy.

Article 3. Principals of management and use of the Fund for implementing national monetary policy

1. Management and use of the Fund for implementing national monetary policy must ensure the strictness, safety, transparency, right purpose.

2. The use of the Fund for implementing the national monetary policy aims to support the achievement of the national monetary policy objectives, ensure the safety of banking activities and the system of credit institutions.

3. Refund source for the loans of the Fund for implementing national monetary policy is the debt retirement, loans compensate (if any) from financial institutions. In case the refund source insufficient to repay the Fund for implementing national monetary policy, the State Bank of Vietnam shall handle in accordance with financial regime of the State Bank.

Article 4. Appropriation, accounting and management and use of the Fund for implementing national monetary policy

1. The State Bank of Vietnam (Finance and Accounting Department) shall carry out the appropriation for the Fund for implementing national monetary policy as prescribed in the Decision No.  07/2013//QD-TTg dated January 24, 2013 of the Prime Minister on financial regulation of the State Bank of Vietnam.

2. If the balance of the Fund for implementing national monetary policy is not enough for spending, SBV shall coordinate with Ministry of Finance to propose measures for making up the deficit to the Prime Minister.

3. The remain balance of the Fund for implementing national monetary policy shall continue to be used in the following year.

4. The Fund for implementing national monetary policy shall be centralized accounted and managed at the Finance and Accounting Department.

Article 5. Using the Fund for implementing national monetary policy

The Fund for implementing national monetary policy shall be use for the following expenses:

1. Provide loans to support credit institutions that encounter difficulties which cause influence on the security of banking system.

2. Provide loans to credit institutions participate in payment system to support the payment system when it has trouble and pose threat to the security of payment activities and banking system;

3. Other arising payments related to implementing the monetary policy upon the approval by Prime Minister.

Article 6. Authority to decide the use of the Fund for implementing national monetary policy

1. The Governor of the State Bank shall decide to use balance of the fund for implementing national monetary policy to serve the expenses as prescribed in Article 5 this Circular.

For expenses need to be approved by the Prime Minister on policy, the State Bank of Vietnam shall report to the Prime Minister to approve the policy before deciding to use the Fund for implementing national monetary policy.

2. The use of the Fund for implementing national monetary policy for specific expenses shall be implemented under the decision of the Governor of the State Bank of Vietnam.

Article 7. Order and procedure to use the Fund for implementing national monetary policy

1. Decisions on the use of the Fund for implementing national monetary policy shall include:

a) Provide loans to support credit institutions that encounter difficulties which cause influence on the security of banking system:

The focal point Banking Inspection and Supervision Agency shall cooperate with the Monetary Policy Department, Financial and Accounting Department and relevant units to submit to the Governor of the State Bank of Vietnam to issues the decision on using the Fund for implementing national monetary policy to provide loans for credit institution which having trouble and pose threat to the security of the banking system.

The documents submit to the Governor of the State Bank of Vietnam must comprise the following content: Purposes of using the Fund (include the estimation on impact level to the security of the banking system); Form of the loans; Estimation of achieve result.

Decisions on the use of the Fund for implementing national monetary policy shall include: Subject of the loans; amount of the loans; form the loans; purposes of the loans and other relevant provisions.

Provide loans to credit institutions participate in payment system to support the payment system when it has trouble and pose threat to the security of payment activities and banking system;

The focal point Banking Inspection and Supervision Agency shall cooperate with the Monetary Policy Department, Financial and Accounting Department and relevant units to submit to the Governor of the State Bank of Vietnam to issues the decision on using the Fund for implementing national monetary policy to provide loans for credit institution which having trouble and pose threat to the security of the banking system.

The documents submit to the Governor of the State Bank of Vietnam must comprise the following content: Purposes of using the Fund (include the estimation on impact level to the security of the banking system); Subjects of the loans; Amount of the loans; Form of the loans; Estimation of achieve result.

Decisions on the use of the Fund for implementing national monetary policy shall include: Subject of the loans; amount of the loans; form the loans; purposes of the loans and other relevant provisions.

c) Other arising expenses related to implementation of monetary policy:

Units affiliated to the State Bank of Vietnam which have requirement to use the Fund for implementing national monetary policy for expenses related to implementation of monetary policy other than cases prescribed in point a and b this Article shall act as the focal agency in coordination with the Financial and Accounting Department, Monetary Policy Department and other relevant agencies to submit to the Governor of the State Bank of  Vietnam for issuing a written opinion to the Ministry of Finance for submission to the Prime Minister for approval. Witting submission to the Prime Minister for approval must comprise the following contents: Purpose of using the Fund; the using amount; methods of report on Fund using result;

After obtain the writing approval of the Prime Minister, the focal agency shall submit to the Governor of the State Bank of Vietnam to issuing the decision on using the Fund for implementing national monetary policy for each specific expenses.

Decisions on the use of the Fund for implementing national monetary policy shall include: Purpose of using the Fund; the using amount and other related provisions.

2. Base on the Decision of the Governor of the State Bank of Vietnam, the Financial and Accounting Department shall guide the use of the Fund for implementing national monetary policy and accounting the refund for the Fund for implementing national monetary policy in case is available.

3. Base on the Decision of the Governor of the State Bank of Vietnam and accounting instructions, the Financial and Accounting Department shall coordinate with the Operation Center and other related under the State Bank of Vietnam to accounting and following the using detail of each expenses that use the Fund for implementing national monetary policy in accordance with law provisions on accounting and other relevant laws.

Article 8. Responsibilities of units under the State Bank

1. The Financial and Accounting Department:

a) Appropriation, give the instructions on accounting the use of the Fund for implementing national monetary policy;

b) To act as the focal agency and coordinate with Operation Center and other relevant units on carry out the appropriation, give the instructions on accounting the use of the Fund for implementing national monetary policy as regulated in the decision of the Governor of the State Bank of Vietnam;

c) To report the Governor on changing of the Fund for implementing national monetary policy and send to the Ministry of Finance in accordance with financial regime of the State Bank of Vietnam.

2. The Operation Center:

To carry out the appropriation and management the expenses that use of the Fund for implementing national monetary policy as regulated in the decision of the Governor of the State Bank of Vietnam;

3. The Banking Inspection and Supervision Agency:

To act as the focal agency and coordinate with other relevant units on submission to the Governor of the State Bank on deciding the use of the Fund for implementing national monetary policy as prescribed in point a and b Clause 1 Article 7 this Circular.

Article 9. Effect

This Circular takes effect on February 20, 2020.

Article 10. Organization of implementation

The Chef Office, the Director of the Financial and Accounting Department and the head of units affiliated to the State Bank of Vietnam shall hold responsibility to implement this Circular.

For the Governor of the State Bank of Vietnam

The Deputy Governor

Dao Minh Tu