CIRCULAR

ON THE AMENDMENT, SUPPLEMENT OF THE CIRCULAR No. 03/2000/TT-NHNN5 DATED 16 MARCH, 2000 GUIDING THE IMPLEMENTATION OF DECREE No. 89/1999/ND-CP DATED 01 SEPTEMBER 1999 OF THE GOVERNMENT ON DEPOSIT INSURANCE

Pursuant to Article 23 of the Decree No. 89/1999/ND-CP dated 01 September 1999 of the Government on the Deposit Insurance, the State Bank of Vietnam amends, supplements several contents of the Circular No. 03/2000/TT-NHNN5 dated 16 March, 2000 that provided guidance on the implementation of the above-mentioned Decree as follows:

I. AMENDMENT, SUPPLEMENT OF POINT 6 SECTION V OF THE CIRCULAR No. 03/2000/TT-NHNN5 DATED 16 MARCH, 2000 OF THE STATE BANK OF VIETNAM

Item a and item b, point 6 of Section V is amended as follows:

"a. The Deposit Insurance of Vietnam shall be responsible for providing the State Bank Inspectors with information concerning the operation of deposit insurance participating organizations, including:

- Information of the compliance with provisions on the deposit insurance and security in banking activities of deposit insurance participating organizations on a quarterly basis.

- Information of the financial support and the payment of insurance premiums to deposit insurance participating organizations on a 6 month basis.

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- Result on the classification of deposit insurance participating organizations on an annual basis.

- Irregular information of deposit insurance participating organizations, which are in danger of loosing their liquidity or losing their capital, assets to a substantial extent that could adversely effect other credit institutions.

- Other information of the activities of deposit insurance participating organizations, if considered necessary.

b. The State Bank shall be responsible for providing the Deposit Insurance of Vietnam with following information concerning deposit insurance participating organizations:

- The State Bank Inspectorate shall be responsible for provision of results of its inspection, supervision of deposit insurance participating organizations, including:

+ Notice of violations of prudential regulations committed by deposit insurance participating organizations on a quarterly basis.

+ Results of the annual classification of deposit insurance participating organizations.

+ Notice of the termination of the partial or entire operations of deposit insurance participating organizations (10 days after the decision is made, at the latest)

+ Irregular information of deposit insurance participating organizations, which are in danger of loosing their liquidity, incurring a too high proportion of overdue debts or losing their capital, assets to a substantial extent that could adversely effect other credit institutions, within10 days from the date where the conclusion of Inspector is made and approved by the Governor of the State Bank, at the latest.

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- Special Control Committee shall be responsible for providing information of the operational performance of deposit insurance participating credit Institutions that are in the state of special control, including:

+ Decision to place a deposit insurance participating organization in the state of special control, the extension and termination of the special control term, 10 days from date of the decision, at the latest.

+ A plan of organizational and operational consolidation for the deposit insurance participating organization, which is placed in the state of special control 10 days from date where the plan is made available and approved by the Governor, at the latest.

+ Result of the implementation of the plan of organizational and operational consolidation for the deposit insurance participating organizations during the special control term and the capability of that institution in its organization and operation after the completion of the special control term, on a monthly basis, on the 10th of the following month at the latest".

II. IMPLEMENTING PROVISIONS

1. This Circular shall be effective after 15 days from the publication in the Official Gazette.

2. The Director of the Administrative Department of the State Bank, Heads of units of the State Bank, Chairman of the Board of Directors, General Director of Deposit Insurance of Vietnam, Chairman of the Board of Directors, General Directors (Directors) of deposit insurance participating organizations shall, within the scope of their function, assignment, be responsible for the guidance, organization and deployment of this Circular.

3. Any obstacle that may arise during the implementing process should be timely reported to the State Bank of Vietnam by organizations, individuals, which are responsible for the implementation of this Circular.

4. The amendment, supplement of this Circular shall be decided upon by the Governor of the State Bank.

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FOR THE GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR




Tran Minh Tuan