SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, November 9, 1999
ON THE ESTABLISHMENT OF VIETNAM DEPOSIT INSURANCE
THE PRIME MINISTER
Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to Decree No. 89/1999/ND-CP of September 1st, 1999 on deposit insurance;
At the proposals of the Vietnam State Bank Governor and the Minister-Head of the Government Commission for Organization and Personnel,
Article 1.- To establish Vietnam Deposit Insurance in order to protect the lawful rights and interests of money depositors, contribute to maintaining the stability of the organizations participating in the deposit insurance as well as the safe and healthy development of banking operations.
Article 2.- Vietnam Deposit Insurance is a State-run financial organization that has the legal person status, conducts independent cost-accounting, preserves capital and covers its expenses with its own revenues, operates throughout the country, has charter capital, assets, balance sheet and its own seals, and is allowed to open accounts at domestic and overseas banks.
Vietnam Deposit Insurance is headquartered in Hanoi and allowed to open its branches and representative offices in various localities in the country, when necessary.
Vietnam Deposit Insurance operates according to the Charter approved by the Prime Minister.
Article 3.- Vietnam Deposit Insurance operates for non-profit purposes.
The financial regime of Vietnam Deposit Insurance shall be decided by the Prime Minister on the basis of the proposal of the Ministry of Finance and the opinions of the State Bank.
Vietnam Deposit Insurance is exempt from taxes as prescribed by law.
Article 4.- The operating capital of Vietnam Deposit Insurance shall include:
1. Charter capital: VND 1,000 billion provided by the State;
2. Additional capital sources from collection of annual deposit insurance premium;
3. Other sources.
Article 5.- Vietnam Deposit Insurance shall have the following tasks and powers:
1. To collect deposit insurance premium from the organizations participating in deposit insurance according to regulations;
2. To pay insured money to depositors within the maximum insurance level as prescribed;
3. To monitor, supervise and inspect the observance of the regulations in the Government’s Decree on deposit insurance as well as the regulations on safety in the operations of the organizations participating in the deposit insurance;
4. To support the organizations participating in the deposit insurance if they are in danger of losing their payment capability but not to the extent of being placed under the state of special control;
5. To take part in the management and liquidation of the assets of the bankrupt deposit-insurance participating organizations;
6. To propose to the State Bank and competent State bodies the elaboration, amendment and/or addition of guidelines and policies on the deposit insurance;
7. To propagate the deposit insurance to the public; organize training and consultancy courses on operations relating to deposit insurance;
8. To cooperate with domestic and foreign organizations with a view to enhancing the operating capability of Vietnam Deposit Insurance and the deposit-insurance participating organizations;
9. To perform other tasks when assigned by the Prime Minister.
Article 6.- Organizational structure, administration and management
1. The Managing Board:
a) Vietnam Deposit Insurance’s Managing Board shall be composed of 5 members, including three full-time members being the chairman, the general director, and the chief of the Control Board; and two part-time members being a Vice Minister of Finance and a Deputy Governor of the State Bank;
The appointment and dismissal of the Managing Board members shall be decided by the Prime Minister at the proposals of the State Bank Governor and the Minister-Head of the Government Commission for Organization and Personnel.
b) The tasks and powers of the Managing Board shall comply with the Vietnam Deposit Insurance’s Charter.
2. The Control Board shall be composed of 3 full-time members and a number of part-time members, one of them shall be the chief. Control Board members (excluding its chief) shall be appointed and dismissed by the Managing Board Chairman on the basis of the proposal of the Control Board chief.
The tasks and powers of the Control Board shall comply with the Vietnam Deposit Insurance�s Charter.
3. The general director shall be a legal person representative of Vietnam Deposit Insurance.
The general director shall be assisted by a number of deputy general directors. The appointment and dismissal of deputy general directors shall be decided by the State Bank Governor at the proposal of the Managing Board Chairman.
The tasks and powers of the general director and the organizational structure of the managerial apparatus shall comply with the Vietnam Deposit Insurance’s Charter.
Article 7.- The State Bank Governor shall be authorized by the Prime Minister:
1. To supervise the operations of Vietnam Deposit Insurance’s Managing Board and have the competence:
- To attend meetings of the Managing Board, when necessary;
- To receive periodical and extraordinary reports of all kinds, including control reports of the Control Board, resolutions of the Managing Board; in cases where he/she detects errors in the reports or disagrees with the contents of the Managing Board’s resolutions, the State Bank Governor shall directly work with the Managing Board for unified handling or readjustment of the resolutions’ contents; in cases where errors in operations and contents of the Managing Board’s resolutions contravene the Government’s Decree on deposit insurance or other legal documents, the State Bank Governor shall report such to the Prime Minister for consideration and decision.
2. To perform a number of other specific tasks assigned by the Prime Minister.
Article 8.- This Decision takes effect 15 days after its signing.
Article 9.- The State Bank Governor, the Minister-Head of the Government Commission for Organization and Personnel, the Minister of Finance, the heads of the concerned agencies shall have to guide and implement this Decision.
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Phan Van Khai