Among other attendees from SBV were Mr. Ta Quoc Hung – Director of SBV’s Emulation and Rewarding Department, Mr. Vo Minh – Director of SBV’s Branch in Da Nang
, Mr. Nguyen Van Dien – Director of SBV’s Branch in Quang Nam Province
. Among participants from DIV were Mr. Nguyen Quang Huy - Board of Directors (BoD) Chairman and other BoD members; Mr. Dao Quoc Tinh – General Director and other members of management board, Controllers; Heads of Departments and Panels of DIV’s Headquarters; Directors, Heads of Divisions of DIV’s Regional Branches.
After the opening remarks by Mr. Nguyen Quang Huy – BoD Chairman, the meeting reviewed various important reports on: 2016 performance and 2017 working plan; 2016 emulation and awarding activities and the launch of 2017 emulation campaign; 2016 financial results and 2017 financial plan; implementation of the Circular No. 312/2016/TT-BTC on stipulating the financial regime for DIV; implementation of labour and salary policies and the Circular No. 32/2016/TT-BLDTBXH on guiding the management of employees and remunerations at DIV; implementation of the Circular No. 34/2016/TT-NHNN on guiding the information provision between SBV and DIV; 2016 PR activities and 2017 PR plan; 2016 performance and the 2017 working plan of the Steering Committee on supervision, inspection and resolution of troubled people’s credit funds. Mr. Dao Quoc Tinh – BoD member, General Director then elaborated on some issues to effectively implement new regulations on DIV’s operations. The year 2016 witnessed a milestone for DIV as the Prime Minister signed the Decision No. 527/QĐ-TTg dated April 1, 2016 on adjusting, supplementing some articles of Charter on the organization and operation of DIV issued together with the Prime Minister’s Decision No. 1395/QD-TTg dated August 13, 2013, which clarifies the operational model, legal framework and mechanism for DIV. Acordingly, DIV is a state financial institution and operates as a single-member limited liability company with 100% of charter capital owned by the state. SBV signed the Decision No. 388/QĐ-NHNN dated March 23, 2016 on authorizing Banking Supervision Agency to exercise the rights and powers as the representative of state ownership at DIV.
In 2016, DIV studied and made a proposal on consolidating its organizational structure in accordance with the Decision No.527/QĐ-TTg; reinforced its financial capacity; underwent staff training; upgraded its IT infrastructure to readily engage in restructuring, resolving troubled credit institutions when ordered by the Prime Minister; made recommendations on amending, supplementing related legal documents and issued its own documents on internal governance and operation in line with DIV’s new organizational model. As required by reality, according to the Decisions issued by the State Bank of Vietnam, the DIV has set up two new departments at the Headquarters, namely Training Department and Participation in Special Control & Assets Recovery Department. At the same time, two new branches were established, namely the North West Regional Branch located in Viet Tri City of Phu Tho Province and the Regional Branch in Da Nang City
DIV actively cooperated with SBV’s Banking Supervision Agency to draft the Circular on guiding information supply between SBV and DIV, the Circular on the operation of DIV controllers in order to submit to the SBV’s Governor for approval; collaborated with Ministry of Finance and Ministry of Labour, War Invalids and Social Affairsto complete the Circular on stipulating the financial regime for DIV, guidelines on DIV accounting, the Decree on salary regime for DIV in accordance with the model of single - member limited liability company with 100% of charter capital owned by the state.
DIV drew up a plan, held meetings in order to improve and accelerate the process of developing and issuing documents on internal governance and operation. Specifically, DIV issued 41 documents, of which, 26 documents were signed to issue by the BoD Chairman on behalf of BoD, 15 signed to issue by the General Director. Although some documents were not issued according to plan due to objective reasons, in general, DIV basically completed building the system of the administrative and operational guiding documents in compliance with the Law on Deposit Insurance in order to facilitate DIV’s operations.
As for the implementation of Deposit Insurance policy, as of 31 December, 2016, there were 1,252 insured institutions including 95 commercial banks, the Co-operative Bank of Vietnam
(Co-op Bank), 1,168 people’s credit funds and 03 micro-finance institutions. DIV’s operations concerning granting, reissuing and revoking certificates of participation in deposit insurance, collecting deposit insurance premiums were carried out systemically and effectively. DIV also actively dealt with problems, violations arising in assessing and paying deposit insurance premiums. Management and investment of temporally idle capital have been conducted safely and effectively as stipulated by law, created additional incomes for the Operating Provision Fund and contributed to the enhancement of DIV’s financial capability. As of 31 December, 2016, DIV’s total asset amounted to more than VND 33,000 billion; invested temporally idle capital reached over VND 31,000 billion, a 23.9% increase year on year. Total revenues were registered at more than VND 6,800 billion, of which, more than VND 5,000 billion came from deposit insurance payments, over VND 1,800 billion from investment.
DIV carried out regular off-site supervision of 100% of insured institutions on monthly, quarterly and yearly basis. Based on information from insured institutions, SBV and other sources, DIV analyzed, assessed the situation of insured institutions and detected weaknesses and violations of banking prudential rules to report to SBV.
DIV also paid great attention to on-site examination. As of December 31, 2016, DIV completed on-site examination at 463 insured institutions (42 commercial banks, 419 people’s credit funds and 02 micro-finance institutions), fulfilling the 2016 on-site examination plan.
In order to raise public awareness of DIV and deposit insurance, DIV pushed up PR activities in various forms. In 2016, DIV organized PR meetings targeted at people’s credit funds and meetings on enhancing public awareness of deposit insurance at DIV’s regional branches with the participation of more than 20 branches of SBV and more than 400 people’s credit funds across the country. Especially, for the first time ever, DIV held some events to promote awareness of deposit insurance among lecturers and students at some universities, which helped to open up a new creative and effective communication channel.
Personnel and human resources development always withdraw great attention from DIV; applied research was conducted effectively and actively; international cooperation was reinforced in order to share experiences and enhance the deposit insurance system in Vietnam; the implementation of FSMIMS Project was speeded up in order to modernizeand apply IT technology toDIV’s operations; governance, management and internal control –audit were all strengthened. Management of finance, assets, infrastructure, archives and records, logistical work were given due attention and carried out effectively.
Mr. Nguyen Kim Anh – SBV’s Deputy Governor praised DIV’s governing board and the entire staff for their unity and efforts to successfully meet the set targets, which was demonstrated by some outstanding achievements after 17 years of development. The Deputy Governor also highlighted 5 focal task groups on which DIV need to concentrate in 2017 as follows:
First, to study and make recommendations on amending, supplementing the Law on Deposit Insurance and other related legal documents to enhance the role of DIV in restructuring credit institutions together with resolving non-performing loans and protecting organizations, individuals’ rights in the restructuring process on the basis of utilizing DIV’s own resources;
Second, to continue to cooperate with Banking Supervision Agency and SBV’s related departments in recommending the Prime Minister to issue decisions on adjustment of deposit insurance coverage limit and approval of DIV’s strategy in line with the banking sector strategy;
Third, to properly allocate DIV’s resources both for effectively investing temporarily idle capital to enhance DIV’s financial capacity and for engaging in restructuring credit institutions and resolving non-performing loans;
Forth, to focus on supervising and examining credit institutions’ compliance with the Law on Deposit Insurance, especially people’s credit funds; to be ready to take part in bank resolution when necessary;
Fifth, to effectively perform operations in close collaboration with SBV’s departments, agencies to early detect and warn against risks, violations, especially those in deposit premium payments.
Based on the strategy, directions set by the Party, the Government and SBV, DIV has indented 15 key task groups for 2017, among which are: continuing to renew the governance and management of DIV, recommending the SBV to submit to the Government for amending the Law on Deposit Insurance; actively carrying out the construction and issue of administrative documents according to plan; continuing to improve DIV’s strategy up to 2020 and vision towards 2025; fully and effectively implementing functions and tasks of DIV towards international standards; effectively investing temporally idle capital, enhancing DIV’s financial capacity; improving accounting, reinforcing coordination among different activities concerning labour, salary, investment, finance, accounting, human resource management in order to increase productivity; improving internal control-audit; continuing to restructure and consolidate organization structure and senior officers; upgrading IT infrastructure; accelerating basic construction work; actively implementing DIV’s strategy when approved, enhancing PR activities; effectively implementing DIV’s regulations on working, and making good use of the role of the Party Committee and unions.
Receiving the instructions of the Deputy Governor, on behalf of DIV, Mr. Nguyen Quang Huy – BOD’s Chairman asserted that DIV’s entire senior officers and staff would be united and determined to accomplish the tasks assigned by the Party, the Government and SBV.
At the meeting, SBV’s Deputy Governor awarded 3rd class Labour Medals to Mr. Nguyen Quang Huy - BoD Chairman, Mr. Tran Xuan Chau – member of DIV’s BoD; awarded the Prime Minister’s Certificate of Merits to Mr. Ngo Van Hoi - member of DIV’s BoD. On this occasion, 2016 emulation awards were also presented to DIV’s groups and individuals.