On 08 April 2014, the Ministry of Finance issued the Circular No. 41/2014/TT-BTC ("Circular 41") regulating the financial regime to the Deposit Insurance of Vietnam (hereinafter referred to as "DIV") taking effect as from 25 May 2014 applicable to the fiscal year of 2014 and to replace the Circulars No. 62/2008/TT-BTC dated 08 July 2008, No. 229/2009/TT-BTC dated 08 December 2009.
DIV is a State financial organization with 100% charter capital owned by the State which was established under the Decision No. 1394/QD-TTg of the Prime Minister dated 13 August 2013. DIV is a non-profit legal entity, self-financed and exempted from taxes. The Board of Management of DIV is liable before the laws and competent State authorities for the safe use of capital and assets and compliance with financial, accounting and auditing regimes of DIV.
Operating capital of DIV includes of the followings:
- charter capital of 5.000 billion VND funded by the State budget;
- source of revenue from deposit insurance premiums;
- sources of revenue from the investment of unused capital; and
- other legal sources of revenue.
DIV establishes a professional reverse fund and a development investment fund, in which:
- The professional reverse fund is used for payment of insurance compensation to the depositors. To ensure the credit-worthiness of DIV to the depositors in case of deficiency of the professional reverse fund, DIV is entitled to receive supporting resources or to borrow from credit institutions or other organizations with Government guarantees.
- The development investment fund is used to supplement the charter capital of DIV according to decision of the Prime Minister basing on proposal of the Ministry of Finance after consulting the State Bank of Vietnam, allowed to establish 30% total margin between annual receiving and spending until the total reservation equals to the charter capital.
Furthermore, Circular No. 41 provides the principles for using capital of DIV is to ensure the safety and to develop the capital. DIV is only allowed to invest the temporarily unused capital to purchase Government bonds, notes of State Bank of Vietnam or to deposit money at the State Bank of Vietnam. DIV has to monitor and separately book in the accounts the incomes earned from these investments.
DIV is entitled to purchase and invest in fixed assets in the limitation that the remaining value of the fixed assets would not exceed 30% of the charter capital plus the value of development investment fund stated in the accounting book. On the principle of capital preservation and development, DIV has the right to lease its assets in compliance with the Civil laws and other relevant regulations. In case of damage of or having no demand to keep the assets, DIV is also entitled to dispose these assets for recover the capital.