Decision No. 1077/2001/QD-NHNN dated August 27, 2001 of the State Bank of Vietnam amending and supplementing a number of contents of the State Bank’s Circular No. 03/2000/TT-NHNN5 of March 16, 2000

DECISION

AMENDING AND SUPPLEMENTING A NUMBER OF CONTENTS OF THE STATE BANK’S CIRCULAR No. 03/2000/TT-NHNN5 OF MARCH 16, 2000

THE GOVERNOR OF THE STATE BANK

Pursuant to December 12, 1997 Law No. 01/1997/QH10 of on the State Bank of Vietnam and the Law on Credit Institutions;

Pursuant to the Government’s Decree No. 15/CP of March 2, 1993 on the tasks, powers and State management responsibilities of the ministries and the ministerial-level agencies;

Pursuant to the Government’s Decree No. 89/1999/ND-CP of September 1, 1999 on Deposit Insurance;

At the proposal of the director of the Department for Banks and Non-Bank Credit Institutions,

DECIDES:

Article 1.-To amend and supplement a number of contents of the State Bank Governor’s Circular No. 03/2000/TT-NHNN5 of March 16, 2000:

1. Item a and Item b of Clause 1, Section IV shall be replaced with the following contents:

"a) The deposit insurance-participating organizations shall have to make the deposit insurance premium calculation and payment tables for Vietnam Deposit Insurance according to appendix No. 2a. For organizations having branches, apart from appendix No. 2a, they shall also have to send appendix No. 2b.

Deposit insurance premium shall be calculated and paid four times a year, on a quarterly basis and remitted into Vietnam Deposit Insurance’s account no later than the 20th of the first month of the quarter when the deposit insurance premium is collected

The basis for calculating deposit insurance premium shall be the balance of insured deposits of various kinds in the quarter preceeding the deposit insurance premium collection quarter.

For organizations, which have been granted establishment and operation licenses, operation licenses or branch-opening licenses (for foreign bank branches) after the effective date of this Circular, the first payment of deposit insurance premium shall comply with the guidance of Vietnam Deposit Insurance.

b) The amount of payable premiums for each quarter shall be calculated according to the following formula:

P = S0 + S3+ S1 + S2 2 0.15 x 3 100 x 4

of which:

- P is the deposit insurance premium amount to be paid in the quarter;

- S0 is the insured deposit balance at the beginning of the first month of the quarter preceeding the deposit insurance premium collection quarter;

- S1, S2, S3 are the insured deposit balances at the end of the first, second and third months of the quarter preceeding the deposit insurance premium collection quarter;

0.15 is the rate of payable deposit insurance premium for each quarter in a year.100 x 4

The payable deposit insurance premium shall be rounded up to the unit of a thousand VN dong.

For the deposit insurance-participating organizations with the average amount of payable deposit insurance premium calculated for a quarter being less than VND 500,000, the payment of deposit insurance premiums shall comply with the guidance of Vietnam Deposit Insurance".

2. Item c, Clause 1 of Section IV shall be annulled.

3. Appendix No. 2 shall be replaced with appendices No. 2a and 2b; appendix No. 4 shall be replaced with appendix 4a; appendices 6 and 7 shall be replaced with appendix No. 6a.

Article 2.-This Decision takes effect 15 days after it signing. The previous provisions, which are contrary to this Decision, are now annulled.

Article 3.-The director of the Office of the State Bank, the heads of the concerned units attached to the State Bank, the chairman of the Management Board and the general director of Vietnam Deposit Insurance, the chairmen of the management boards and general directors (directors) of the deposit insurance-participating organizations shall, within the scope of their respective functions and tasks, have to guide and deploy the implementation of this Decision.