On April 26, continuing the 44th session, the National Assembly Standing Committee gave opinions on the policy of supporting state capital to increase charter capital for Vietnam Cooperative Bank (VBSP) from the state budget.
Reporting at the meeting, Governor of the State Bank of Vietnam Nguyen Thi Hong stated that state capital support to increase charter capital and improve financial capacity of the Cooperative Bank.
In addition, the capital increase is also aimed at meeting practical operational requirements, well implementing assigned missions, responsibilities and tasks in supporting collective economic development, system linkage, financial support and ensuring stable, safe and sustainable operation of People's Credit Funds (QTDND).
Therefore, the Government proposes that the National Assembly consider and decide on supporting state capital to increase charter capital to improve financial capacity for Cooperative Banks and include it in the General Resolution of the National Assembly session with the following content:
Approving the policy of supporting state capital to increase charter capital for the Cooperative Bank with an amount of VND 5,000 billion from the central budget development investment expenditure. The authority to decide, order, and procedures for state capital support for Cooperative Banks shall be implemented in accordance with regulations.
The arrangement of state budget estimates to increase charter capital for Cooperative Banks is implemented in accordance with the provisions of the State Budget Law.
Assign the Government to direct the support of state capital to increase charter capital for Cooperative Banks according to regulations; be responsible to the National Assembly for the accuracy of the data and the scale of state capital support for Cooperative Banks.
Reviewing this content, the Standing Committee of the Economic and Financial Committee found that increasing charter capital for Cooperative Banks is necessary, in accordance with the requirements in the resolutions of the National Assembly.
Support Cooperative banks to ensure the minimum capital safety ratio, perform well the role of supporting, regulating, balancing capital, and ensuring operational safety for the QTDND system.
The inspection agency believes that the consideration of state capital support to increase charter capital for Cooperative banks has a legal basis.
However, the authority to decide on policies and procedures for state capital support as proposed in the Government's Submission is not under the authority of the National Assembly.
Therefore, the Standing Committee of the Economic and Financial Committee recommends that the National Assembly Standing Committee consider assigning the Government, based on the provisions of relevant Laws and laws, on the basis of clearly identifying capital sources and balancing capacity, the Government should consider and decide on state capital support to increase charter capital for Cooperative Banks according to regulations.
Concluding the discussion, the National Assembly Standing Committee agreed that increasing capital for Cooperative Banks is necessary and has a legal basis.
However, the capital increase of VND 5,000 billion for the Cooperative Bank is not at the national important project level, so it is not under the authority of the National Assembly to decide on investment policy but under the authority of the Government.
The National Assembly Standing Committee proposes that the Government, based on clearly defining capital sources and capital balance capabilities, consider and decide on state capital support to increase charter capital for Cooperative Banks in accordance with the provisions of law.
During the management process, the Government needs to pay attention to other solutions to increase charter capital for Cooperative Banks and have a plan to use the increased charter capital for the right purpose.
