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22 continuous years of keeping “fire of trust”

22 years ago (9/11/1999-9/11/2021), Prime Minister Phan Van Khai signed Decision No 218/1999/QD-TTG on the establishment of the Deposit Insurance of Vietnam. This is a milestone which has marked a significant step for the Government toward improving the financial and banking safety net in the socialist-oriented market economy.

Strengthening the role of deposit insurers in protecting financial consumers

Financial consumer protection is one of the important tools to increase people's access to finance, and at the same time to ensure the legitimate interests of financial consumers as well as ensure fair transactions and competition, transparent financial product/service information in the financial market. Deposit insurers ensure the interests of financial consumers, contributing to the stability and healthy development of the national financial system.

Increasing the coverage limit: the impetus for the development of the banking system and depositor protection

On October 20, 2021, the Prime Minister promulgated Decision No.32/QD-TTg on deposit insurance coverage limit, adjusting it from VND 75 million to VND 125 million for each individual’s deposit at a credit institution participated in deposit insurance system. Thus, from December 12, 2021 (the effective date of Decision No.32/QD-TTg), in case a credit institution becomes insolvent or goes bankrupt, depositors will be compensated 125 million VND maximum, including principal and interest.

Raising deposit insurance coverage limit – enhancing depositor protection

The current deposit insurance (DI) policy enforcement agency in Vietnam is the Deposit Insurance of Vietnam (DIV) – established in 1999, with the Decree was the highest legal document regulating DI activities. In 2012, the issuance of the Law on DI set an important legal foundation, marking a step forward in depositor protection, ensuring the safety of national banking and financial system.

Changes in the role of deposit insurers in resolution of failed credit institutions and resolution tools after 2008 financial crisis

Deposit insurers (DIs) have often been established following financial and banking crises and experienced big changes in recent time. Presently, there are roughly 140 DIs over the world and most of them were founded in the 1960s, while many of them after 2000 (or post-1997 Asia financial crisis). All these DIs have so far quickly developed since the 2008 global financial crisis.

Management of blank savings account passbooks at People's Credit Funds – A perspective from the examination results of the Deposit Insurance of Vietnam’s Mekong River Delta Regional Branch

The State Bank of Vietnam (SBV) regularly directs and pays attention to the management and usage of blank savings account passbooks at people's credit funds (PCFs) in order to ensure strict management and prevent illegal violations related to the usage of blank savings account passbooks not in accordance with the regulations by officials and employees at the PCFs. In the past time, the Mekong River Delta Regional Branch of the Deposit Insurance of Vietnam (DIV) has always given close attention to the management and usage of essential printed materials, particularly blank savings account passbooks, in their examination operations.

Benefits of raising deposit insurance coverage limit

Many agreed that raising the coverage limit to VND 125 million  is of significance to better protect rights of depositors, enhance the confidence of the public in deposit insurance policy, the system of credit institutions (CIs) as well as banking operations.

Banking industry with effective credit solutions among Covid-19 pandemic

Under the negative impacts of the COVID-19 pandemic, over the past time, following the directions of the National Assembly, the Government and the Prime Minister, the State Bank of Vietnam (SBV) and the whole system of credit institutions have proactively and drastically conducted multiple credit support solutions, reduced the lending interest rates with the banking sector's own resources in order to help resolve the difficulties in production and business activities, contributing to the inflation control, maintaining the macro-economic stability and supporting the economic growth.

Banking industry joins hands in fight against COVID-19

Responding to  the calls from the Prime Minister and the State Bank of Vietnam (SBV)’s Governor for vaccinating all Vietnamese people against COVID-19 at the soonest time possible, with a willingness to join hands with the whole community in the fight against the pandemic, the SBV and the Ministry of Health (MoH) jointly held a ceremony to receive financial support from the banking industry for COVID-19 vaccine purchases  on May 21, 2021

Banking digital transformation- no longer an option but a mandatory requirement

The State Bank of Vietnam (SBV)’s Deputy Governor Nguyen Kim Anh said that digital transformation is no longer an option but a mandatory requirement and a strategic direction to help the banking industry compete effectively and develop sustainably in the industry 4.0 era.

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