| THE GOVERNMENT ------- | THE SOCIALIST REPUBLIC OF VIETNAM Independence– Freedom – Happiness --------------- |
| No. 57/2012/ND-CP | Hanoi, July 20, 2012 |
DECREE
ON THE FINANCIAL REGULATIONS APPLICABLE TO BRANCHES OF FOREIGN BANKS
Pursuant to the Law on Government organization on December 25, 2001;
Pursuant to the Law on Enterprise on November 29, 2005;;
Pursuant to the Law on credit institutions on June 16, 2010;
At the proposal of the Minister of Finance,
The Government promulgates the Decree on the financial regulations applicable to branches of foreign banks.
Chapter 1.
GENERAL PROVISIONS
Article 1. Scope of regulation
This Decree prescribes the financial regulations applicable to branches of foreign banks and credit institutions established and operated under the Law on credit institutions No. 47/2010/QH12 on June 16, 2010.
Article 2. The principles of financial management
1. The branches of foreign banks and credit institutions exercising financial autonomy are responsible for their own operation, for the fulfillment of their obligations and commitments as prescribed by law.
2. Branches of foreign banks and credit institutions must make financial disclosures as prescribed by law.
Article 3. Responsibilities regulations
The President of the Board of Directors, or the President of the Member assembly, or the General Director (Director) of branches of foreign banks and credit institutions are responsible for before law and to State management agencies for the adherence to the accounting, audit and financial regulations of branches of foreign banks and credit institutions.
Chapter 2.
CAPITAL, ASSET MANAGEMENT AND USE
Article 4. Capital of credit institutions
1. Equity capital:
a) Charter capital;
b) The differences due to asset revaluation or exchange rate differences as prescribed by law;
c) Equity surplus
d) The charter capital reserve funds, professional development funds, financial reserve funds
dd) Undistributed profits;
e) Other capital legally possessed by branches of foreign banks and credit institutions.
2. Raised capital:
a) Capital raised from deposit of organizations and individuals;
b) Capital from investment authorization;
c) Loan from domestic and foreign credit institutions and financial institutions;
d) Loan from the State bank of Vietnam;
dd) Capital from the issuance of valuable papers.
3. Other kinds of capitals as prescribed by law
Article 5. Branches of foreign banks and credit institutions must sustain the actual value of the charter capital or the provided capital at least equal to the legal capital as prescribed by the Government. Branches of foreign banks and credit institutions must publicly announce the new charter capital or provided capital when the charter capital or provided capital is changed.
The actual value of the charter capital and provided capital are calculated by the actual contributed charter capital or provided capital plus (minus) the undistributed capital (unsettled loss), the funds extracted from post-tax profits (excluding commendation funds, welfare funds and reward funds of operation board).
