State Bank has legal capital of 10,000 billion VND
The financial reserve fund shall not exceed 25% of the State Bank's legal capital.
The Prime Minister has just signed Decision No. 07/2013/QD-TTg dated January 24, 2013 on the financial regime of the State Bank of Vietnam (SBV).
Accordingly, the State Bank manages and uses the following types of capital: Legal capital; money issued into circulation to implement the national monetary policy; deposits of credit institutions and the State Treasury; borrowed capital; and other capital.
Regarding the legal capital of the State Bank, it is stipulated to be 10,000 billion VND. In which, this capital is formed from the following sources: Existing capital sources (including allocated state budget capital and capital for basic construction investment and fixed asset purchase); additional capital sources (including allocated state budget capital (if any); deductions from expenses equal to 12% of the average annual fixed asset value according to regulations); increase in difference due to revaluation of fixed assets according to regulations of law; other capital sources (if any).
Decision 07/2013 also stipulates: The State Bank is allowed to set up a risk reserve and record it as an expense equal to 10% of the difference between revenue and expenditure excluding the risk reserve. The balance of the risk reserve must not exceed the amount required to set up a risk reserve according to the regulations applicable to the State Bank.
The risk reserve is used to offset losses or losses considered as losses in the operations of the State Bank, including: losses arising from credit operations; losses in payment and treasury operations; losses arising from management and state foreign exchange reserves and intervention to stabilize the domestic gold market; other losses in the course of operations with sufficient reliable evidence that there are no more objects to collect or the objects to be collected are no longer able to pay; handling payments to the State and the State budget as approved by the Prime Minister; other cases as decided by the Governor of the State Bank.
In addition, the State Bank shall make annual deductions from the difference between revenues and expenditures as prescribed to supplement the National Monetary Policy Implementation Fund and the Financial Reserve Fund. For the National Monetary Policy Implementation Fund, the actual balance of the Fund shall not exceed one time the statutory capital of the State Bank. The maximum level of the Financial Reserve Fund shall not exceed 25% of the statutory capital of the State Bank.
The State Bank's fiscal year begins on January 1 and ends on December 31 of the calendar year./.
According to (vov.vn) - LT
