Decision No. 1394/QD-TTg of August 13, 2013, establishing, and defining the functions and tasks of, the Deposit Insurance of Vietnam

THE PRIME MINISTER

Decision No. 1394/QD-TTg of August 13, 2013, establishing, and defining the functions and tasks of, the Deposit Insurance of Vietnam

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;

Pursuant to the June 18, 2012 Law on Deposit Insurance;

Pursuant to the Government’s Decree No. 68/2013/ND-CP of June 28, 2013, detailing and guiding the implementation of the Law on Deposit Insurance;

At the proposal of the Governor of the State Bank of Vietnam,

DECIDES:

Article 1.Establishment of the Deposit Insurance of Vietnam

To establish the Deposit Insurance of Vietnam in accordance with the June 18,2012 Law on Deposit Insurance.

The Deposit Insurance of Vietnam has the charter capital of VND 5,000,000,000,000 (five trillion Vietnam dong) allocated by the state budget.

The Deposit Insurance of Vietnam has its head office in Hanoi city and representative offices and branches in a number of regions.

Deposit Insurance of Vietnam is the international transaction name of the institution, abbreviated to DIV.

Article 2.Position and functions

1. The Deposit Insurance of Vietnam is a state financial institution which operates profit purposes, aiming to protect the rights and legitimate interests of depositors, implement deposit insurance policies contributing to maintaining the stability of the system of credit institutions and ensuring safe and sound development of banking operations.

2. The Deposit Insurance of Vietnam operates on the principles of askance of capital safety and self-financing. The Deposit Insurance of Vietnam practices independent cost-accounting and has the legal entity status and its own seal and account in accordance with law.

3. The Deposit Insurance of Vietnam is exempted from all taxes in accordance with law.

The Ministry of Finance shall assume the prime responsibility for, and coordinate with the State Bank of Vietnam in, prescribing the financial regime applicable to the Deposit Insurance of Vietnam.

Article 3. Tasks and powers of tire Deposit Insurance of Vietnam

1. To formulate a deposit insurance development strategy for the State Bank to submit to the Prime Minister for approval, and organize its implementation.

2. To propose the State Bank and competent state management agencies to formulate, amend and supplement deposit insurance guidelines and policies; to promulgate new legal documents on deposit insurance or amend, supplement, replace, annul, or terminate the implementation of, existing legal documents on deposit insurance.

3. To grant, re-grant and revoke certificates of participation in deposit insurance.

4. To request organizations participating in deposit insurance to regularly or irregularly provide information on insured deposits.

5. To provide information to the State Bank and access information of the State Bank according to Articles 8,9 and 10 of Decree No. 68/2013/ND-CP.

6. To calculate and collect deposit insurance premiums from organizations participating in deposit insurance in accordance with the Law on Deposit Insurance and relevant legal documents.

7. To manage, use and preserve deposit insurance capital sources.

8. To pay or authorize others to pay insurance money to insured persons in accordance with the Law on Deposit Insurance and relevant legal documents.

9. To monitor and examine the observance of the law on deposit insurance; to propose the State Bank to handle violations of the law on deposit insurance.

10. To summarize. analyze and process information on organizations participating in deposit insurance in order to detect, and propose the State Bank to promptly handle, violations of regulations on safety in banking operations, and risks likely to make the banking system unsafe.

11. To keep confidential data on deposits and documents related to deposit insurance of organizations participating in deposit insurance in accordance with law.

12. To receive and repay state budget supports under the Prime Minister’s decisions or take government-guaranteed loans from credit institutions or other organizations in case deposit insurance organizations’ capital sources are temporarily insufficient for paying insurance money; to receive financial assistance from domestic and foreign organizations and individuals for raising its operation capacity.

13. To participate in special control of organizations participating in deposit insurance according to the State Bank’s regulations; to participate in managing and liquidating assets and recovering payable insurance amounts of organizations participating in deposit insurance in accordance with law.

14. To disseminate policies and law on deposit insurance; to provide professional training and retraining in deposit insurance, and implement science and technology research and application and management methods to meet development requirements of deposit insurance organizations.

15. To fulfill commitments toward organizations participating in deposit insurance and other commitments falling within the ambit of its responsibilities.

16. To renew and modernize technologies and management methods to meet its development requirements.

17. To perform obligations toward its employees in accordance with law; to recruit, hire, assign, employ and train employees, and select forms of salary and bonus payment in accordance with law.

18. To receive, manage and properly use the charter capital, additional capital sources, land and other resources allocated by the State in accordance with law.

19. To transfer, lease, mortgage and pledge assets under its management in accordance with law.

20. To cooperate with domestic and foreign organizations for raising the operation capacity of its own and organizations participating in deposit insurance.

21. To submit to examination, inspection and supervision by the State Bank and competent state agencies in accordance with law.

22. To perform other tasks and exercise other powers as assigned by the Prime Minister or the State Bank Governor.

Article 4.The State Bank of Vietnam’s state management responsibilities for the Deposit Insurance of Vietnam

1. The State Bank of Vietnam shall perform the state management of the Deposit Insurance of Vietnam and take responsibility before the Government for performing the state management of deposit insurance.

2. The State Bank of Vietnam shall:

a/ Promulgate or submit to competent agencies for promulgation legal documents on deposit insurance strictly according to regulations;

b/ Submit a deposit insurance development strategy to the Prime Minister for approval;

c/ Examine, inspect, handle violations and settle complaints and denunciations about deposit insurance;

d/ Submit to the Prime Minister for decision the Deposit Insurance of Vietnam’s accession to international deposit insurance organizations;

dd/ Conclude international agreements or submit to competent agencies the conclusion of and accession to deposit insurance treaties;

e/ Supervise the operation of the Deposit Insurance of Vietnam;

g/ Propose the Prime Minister to approve or modify and supplement the charter of the Deposit Insurance of Vietnam, and to appoint, re-appoint, remove from office, approve resignation of, commend and discipline the Chairperson of the Board of Directors of the Deposit Insurance of Vietnam;

h/ Represent the state owner of the Deposit Insurance of Vietnam; decide on the organizational structure of the Deposit Insurance of Vietnam; appoint, reappoint, remove from office, approve resignation of, commend and discipline member of the Board of Directors, the general director, deputy general directors and controllers of the Deposit Insurance of Vietnam.

Article 5. Effect and implementation responsibility

1. This Decision takes effect on the date of its signing.

2. This Decision replaces the Prime

Minister’s Decision No. 218/1999/QD-TTg of November 9, 1999, on the establishment of the Deposit Insurance of Vietnam.

3. The Governor of the State Bank of Vietnam, ministers, heads of ministerial- level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and the Chairperson of the Board of Directors of the Deposit Insurance of Vietnam shall implement this Decision.-

Prime Minister

NGUYEN TAN DUNG