(Chinhphu.vn) – Mr. Le Thanh Trung (in Quang Nam Province) would like to ask: are local Development Investment Funds and non-budget State financial funds a credit institution and subject to the Law on Credit Institutions and the Law amending,  supplementing a number of articles of the Law on Credit Institutions?

Regarding this issue, The State Bank of Vietnam has the following opinions:

Clause 1, Article 4 of the Law on Credit Institutions 2010 (amended and supplemented) provides: “Credit institution means an enterprise conducting one. some or all banking operations. Credit institutions include banks, non-bank credit institutions, microfinance institutions and people's credit funds”.

Clause 1, Article 3 of the Decree No. 138/2007 / ND-CP of the Government stipulating the organization and operation of local Development Investment Funds stipulates the legal status of local Development Investment Funds:

 “A local Development Investment Fund is a locally based state financial institution functioning to make financial and development investments. A local Development Investment Fund has the legal person status, charter capital, its own balance sheet and seal. It may open accounts at the State Treasury and commercial banks lawfully operating in Vietnam.”.

Clause 19, Article 4 of the Law on State Budget 2015stipulates: “Off-budget financial fund means a fund established by a competent authority and independent from state budget; its revenues and obligatory expenditures are meant to fulfill certain tasks prescribed by law.”.

Therefore, based on the above provisions, the local Development Investment Fund and the off-budget State Financial Fund are State funds which are not credit institutions.

Pursuant to Article 2 of the  Law on Credit Institutions2010 (amended and supplemented), the subjects of application of this Law are as follows:

“Subjects of application this Law applies to::

1. Credit institutions;

2. Foreign bank branches;

3. Representative offices of foreign credit institutions and other foreign institutions engaged in banking operations;

4. Organizations and individuals involved in the establishment, organization, operation, special control, reorganization and dissolution of credit institutions;

the establishment, organization and operation of foreign bank branches and representative offices of foreign credit institutions and other foreign institutions engaged in banking operation”.

Therefore, local Development Investment Funds and off-budget state financial funds are not directly governed by the  Law on Credit Institutions 2010 (stated in Clauses 1, 2 and 3, Article 2 of this Law). .

However, according to Clause 4, Article 2 and Clause 12, 13, 14, 15, ... Article 4 of the 2010 Law on Credit Institutions, these funds may be governed by this Law in the relevant case. to activities of credit institutions, to use services provided by credit institutions.