In 2022, the Deposit Insurance of Vietnam (DIV) continues to raise the spirits of pandemic prevention, prepare all resources to transform its operations into the “new normal”. Therefore, its international cooperation activities are also oriented toward ensuring effective pandemic prevention and further strengthening itself through both online and offline format in line with the developments of the pandemic in order to better meet the DIV’s demand and future orientations.

From general insurance to deposit insurance, reimbursement is usually the deposit insurer’s last action to resolve insolvency problems, and is always an essential function. The reimbursement activity clearly demonstrates DIV’s roles and DIV’s reimbursement methods show the insurer’s commitment and responsibility to depositors. A deposit insurer’s Corporate Social Responsibility (CSR) offers its value in its depositor reimbursement/compensation process.

According to the provisions of the Law amending and supplementing a number of articles of the Law on Credit Institutions (CI) (Law on CI 2017), the Deposit Insurance of Vietnam (DIV) participates in a number of tasks in the special control of CIs such as participating in restructuring plans and implementing a number of measures to support CIs under special control. Among these tasks is to participate in the feasibility assessment of the recovery plan for people's credit funds (PCFs), microfinance institutions (MFIs), and financial companies (FCs) under special control. The 2017 Law on CIs stipulates that the recovery plan is one of the five restructuring plans for CIs under special control. Specifically, the DIV coordinates with the Special Control Board (SCB) to evaluate the feasibility of the recovery plan for PCFs, MFIs, and FCs under special control.

Deposit insurance premium is the amount of money an insured institution must pay in order to have the deposits of the insured depositors in insured institution guaranteed as regulated. This is an important tool which not only helps to ensure that the deposit insurer’s financial capacity and the ability to respond when risks arise is adequate to properly protect depositors and maintain safety of banking operations, but also creates a sense of fairness and promote sound competition among insured institutions.

Participation in the restructuring credit institutions (CIs) through purchasing long-term bonds is in one hand a new political task of the Deposit Insurance of Vietnam (DIV) that needs to be separated from its investment activities. In the other hand, this is a chance for DIV to propose for diversifying its funds usage for various purposes contributing to improving DIV’s financial capacity and institutional position.

The State Bank of Vietnam (SBV) is collecting public comments on the draft Resolution of the National Assembly on extending the implementation period of Resolution 42/2017/QH14 (Resolution 42) on piloting  the settlements of credit institutions’ bad debts (CIs).

According to the provisions of the Law on amendments and supplements to a number of articles of the Law on Credit Institutions (CIs) and Circular No. 08/2021/TT-NHNN dated July 6, 2021 of the State Bank of Vietnam (SBV) on providing special loans to CIs placed under special control, the Deposit Insurance of Vietnam (DIV) provides special loans to CIs placed under special control in the following cases: Providing special loans to support liquidity; providing special loans according to decisions of the SBV to support liquidity; providing special loans in accordance with the recovery plan (according to Clause 2, Article 4 of Circular No. 08/2021/TT-NHNN). This is an important legal basis for the DIV to be able to participate further in the restructuring process, support troubled CIs to return to normal operations, contribute to ensuring bank security, and protect legitimate rights and interests of depositors.

The analysis of people’s credit funds’ (PCFs) financial position helps regulatory agencies in assessing potential risks in PCFs’ operations, making recommendations and proposals to adjust operations of PCFs to a safer manner, and safeguarding depositors’ interests.

Communication is one of the core operations of the Deposit Insurance of Vietnam (DIV) as specified in Clause 14, Article 13 of the Law on Deposit Insurance. Accordingly, the DIV is responsible for “disseminating deposit insurance policies and regulations; organizing training courses on core operations of deposit insurance”. For more than 20 years of its operations, the DIV has been gradually diversifying communication tools to the public to spread deposit insurance policies to a large number of depositors at insured institutions, especially the people's credit fund (PCF) system.

The Deposit Insurance of Vietnam (DIV) is a state-owned financial institution, operating not for profit, in order to protect the legitimate rights and interests of depositors, and contribute to maintaining the stability of the credit institution (CI) system, thereby ensuring the safe and sound development of banking activities.