Regulations on management and use of capital and assets of credit institutions

In which, the Decree stipulates the management and use of capital and assets of credit institutions and foreign bank branches:

Capital of credit institutions, foreign bank branches

The Decree stipulates that capital of credit institutions and foreign bank branches includes:

1- Owner's equity: Charter capital or granted capital; differences due to asset revaluation, exchange rate differences; capital surplus; funds: reserve fund to supplement charter capital of credit institutions or reserve fund to supplement granted capital of foreign bank branches, financial reserve fund, development investment fund; undistributed accumulated profits, unprocessed accumulated losses; other capital owned by credit institutions and foreign bank branches.

2- Capital mobilized according to the provisions of the Law on Credit Institutions: Capital mobilized from receiving deposits and capital mobilized through the issuance of deposit certificates and bonds; capital received from investment trusts; capital borrowed from credit institutions, financial institutions and other domestic and foreign organizations and individuals; capital borrowed from the State Bank of Vietnam according to the provisions of law.

3- Other capital as prescribed by law.

Use of capital and assets of credit institutions and foreign bank branches

The Decree clearly states that credit institutions and foreign bank branches are allowed to use capital for business purposes in accordance with the provisions of the Law on Credit Institutions and other relevant legal provisions. Credit institutions with 100% state-owned charter capital and credit institutions with state capital must also comply with legal provisions on management and use of state capital invested in production and business at enterprises.

Credit institutions and foreign bank branches are entitled to change their capital structure and assets to serve the development of business activities in accordance with the provisions of law.

Credit institutions and foreign bank branches are allowed to purchase and invest in fixed assets directly serving their operations according to the provisions of Clause 3, Article 144 of the Law on Credit Institutions. For credit institutions in which the State holds 100% of the charter capital and credit institutions with State capital, the purchase and investment in fixed assets must also comply with the provisions of law on management and use of State capital invested in production and business at enterprises.

The transfer of capital and assets between branches of a credit institution is carried out according to the internal regulations of the credit institution.

For real estate held due to debt settlement as prescribed in Clause 3, Article 139 of the Law on Credit Institutions:

For real estate held by credit institutions for sale or transfer to recover capital within the time limit prescribed in Clause 3, Article 139 of the Law on Credit Institutions, credit institutions shall not account for an increase in assets or make depreciation deductions.

For real estate acquired by a credit institution for use as a business headquarters, workplace or warehouse facility directly serving the credit institution's business activities, the credit institution shall account for an increase in assets, depreciate in accordance with the provisions of law and must ensure the limits on purchasing and investing in fixed assets as prescribed in Clause 3, Article 144 of the Law on Credit Institutions.

Contribute capital, buy, sell, transfer shares and capital contributions of credit institutions

According to the Decree, capital contribution, purchase, sale, and transfer of shares and capital contributions of credit institutions shall comply with the provisions of the Law on Credit Institutions and other relevant legal provisions.

The authority to decide on capital contribution plans, purchase, sale, and transfer of shares and capital contributions of credit institutions shall comply with the provisions of the Law on Credit Institutions, other relevant legal provisions, and the Charter of the credit institution.

Credit institutions with 100% state capital and credit institutions with state capital must also comply with legal regulations on management and use of state capital invested in production and business at enterprises.

Capital safety guarantee

Credit institutions and foreign bank branches are responsible for implementing the following regulations on capital safety assurance:

Manage, use capital, assets, distribute profits, implement financial management and accounting regimes according to the provisions of the Law on Credit Institutions, this Decree and relevant legal provisions.

Implement regulations on ensuring safety in operations according to the provisions of the Law on Credit Institutions and other relevant legal provisions. Purchase property insurance for assets that require insurance. Participate in deposit insurance and the fund to ensure the safety of the people's credit fund system according to the provisions of the Law on Credit Institutions. Handle property losses according to the provisions of Article 9 of this Decree. Record risk provisions in business operating expenses according to the provisions of the Law on Credit Institutions and other relevant legal provisions.

Source: https://phunuvietnam.vn/quy-dinh-quan-ly-su-dung-von-tai-san-cua-to-chuc-tin-dung-20250612194606791.htm