Financial statements of weak credit institutions must be publicized

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Accordingly, the revenues and recognition of turnover of weak credit institutions shall comply with the regulations on financial regime applicable to credit institutions, foreign bank branches and the law on corporate income tax.

The expenses of the weak credit institutions shall comply with the regulations on the financial regime applicable to credit institutions and foreign bank branches.

Some expenditures of weak credit institutions are as follows: provisions for risks in operation of weak credit institutions will be in accordance with Clause 27, Article 1 of Law amending and supplementing a number of articles of the Law on Credit Institutions.

Rewards for managers and employers shall be equal to 0.5 of the average salary actually paid in the year in cases where the credit institutions fulfil the targets and tasks of restructuring and effectively implement annual activities assigned or approved by State Bank of Vietnam (SBV). Weak credit institutions must develop and publicize the regulations on reward.

Weak credit institutions must carry out a plan to restructure and deal with bad debts, which was approved by competent authorities, including financial solutions; report fully and promptly to the SBV on the implementation results and financial difficulties and problems in order to carry out the plan on restructuring and handling of bad debts. At the same time, publicizing financial statements according to regulations of the SBV.

The draft also states that the SBV should assign or approve the targets and tasks of restructuring weak credit institutions and facilitate the annual activities of weak credit institutions; and should stipulate safe targets in the operations of weak credit institutions.

Financial statements will be applied under international standards VCN- At the workshop entitled “Other countries’ experience in IFRS application, direction of Vietnam” held on 28th May, ...

In addition, the SBV shall provide for the public disclosure of financial statements of weak credit institutions during the time of restructuring of weak credit institutions; conduct examinations, inspections and supervisions of operations of the weak credit institutions; make quarter and yearly report to the Ministry of Finance on the financial situation of weak credit institutions.