First, regarding the date when insurance payment duty arises, the regulation states that insurance payment duty arises from the date when the State Bank, in writing, terminates the special control status of an insured institution or terminates the application of measures to rehabilitate solvency of the insured institution or does not apply these measures, and the insured institution is, however, still in bankruptcy status; or when the State Bank identifies in writing that a foreign bank’s insured branch is incapable of paying deposits to depositors. Previously, insurance payment duty arised when the competent authority decided to terminate the operation of the insured institution and the insured institution became insolvent. Accordingly, rights and interests of depositors are now protected in a timely manner.
Second, in terms of deposit insurance payment dossiers and procedures, the regulation streamlines administrative procedures creating favorable conditions for insured institutions. Currently, 03 documents (compared with 06 documents as provided by earlier law) are submitted, specifically: (i) a claim document (Sample 01/CTrBH); (ii) a list of eligible insured depositors and amounts of insurance payment proposed to be paid as of the date when insurance payment duty arises; (iii) Copy of the document which terminates the special control status of an insured institution or terminates the application of measures to rehabilitate solvency of the insured institution or does not apply these measures, and the insured institution is, however, still in bankruptcy status; or identifies that a foreign bank’s insured branch is incapable of paying deposits to depositors. Documents and the list of eligible depositors and amount of payment shall be sent in writing and electronic file.
Third, in terms of insured institutions’ obligations, insured institutions will take higher responsibilities, specifically: (1) shall submit an insurance payment dossier to the deposit insurance organization within 10 working days of the date when the insurance payment duty arises; (ii) shall comply with the law, the State Bank of Vietnam regulations on deposit insurance and other related legal documents; (iii) shall be responsible for the sufficiency, legitimacy, accuracy of the insurance payment dossiers; (iv) shall submit sufficient records, books, invoices and other documents related to the list of insured depositors at the request of DIV for checking and reimbursement; (v) shall certify the loss, damage and unclear contents of insured depositors’s books; help insured depositors cross-check the list, amount of payment and send their feedbacks to DIV; (vi) shall cooperate with DIV to handle questions and claims of depositors on insurance payment; (vii) shall cooperate with DIV or authorised agencies to manage successfully the insurance payment process; (viii) shall report to and request the securitiy guarantee and asset safety from local and prosecutorial authorities; (ix) shall certify their loans to DIV for the amount paid to insured depositors.
Forth, for insured depositors, the regulation clearly defines: (i) conditions for receipt of payment; (ii) eligible and legitimate documents to receive insurance payment; (iii) process and procedures at payment venues; (iv) deadlines of payment; (v) obligations of insured depositors including requirements on eligible and legitimate documents such as:
1. Valid identity cards or;
2. In case of joint account, there shall be legitimate agreement in place which divides the amount for each co-owner or decision from competent authority which devides the amount of deposit payment;
3. In case the receiver is the authorized person or inheritor of the insured depositor, in addition to written evidence for the legitimate ownership of their insured deposits and identity card or passport, he shall submit other document as legally stipulated.
Fifth, to determine the insured deposit, the regulation requires that the amount of insurance to be paid for all insured deposits with an insured institution is the balance including principal and any accrued interest as of the date when insurance payment duty arises, offseting the debts including principal and any accrued interest at this insured institution if any.
The amount of insurance to be paid to an insured depositor with an insured institution shall be up to the coverage limit (currently 50 million VND) and calculated as follows : (i) equal to the balance of all deposits by one depositor (including principal and interest) if it does not exceed the coverage limit; (ii) equal to the coverage limit if the balance (including principal and interest) exceeds the coverage limit.
It stipulates the joint ownership of insured deposits at an insured institution more specifically than earlier document as follows:
1. The amount of insurance to be paid shall not exceed the insurance limit for a depositor. It shall be divided in accordance with an agreement among the co-owners; in the case of having no such agreement or failing to reach such agreement, this amount shall be settled as legally stipulated;
2. If one of the co-owners has another insured deposit with the same insured institution, the total amount of the insurance to be paid to the co-owner shall not exceed the insurance limit. The amount of the insured deposits, which are in excess of the deposit insurance limit, shall be settled during the process of liquidation of the insured institution’s assets in accordance with law.
Sixth, DIV’s obligations are defined as follows: (i) checking documents and books to determine the amounts of insurance to be paid within 05 working days of the date of receiving the full dossier from insured institutions; (ii) approving a plan on making insurance payment to the insured depositors within 10 working days of the date of completion of the document check to determine the amounts of insurance to be paid; (iii) making insurance payment to the insured depositors within 60 days of the date when insurance payment duty arises, directly to the insured depositors or authorizing other insured institutions to make such insurance payment or combine both methods; (iv) publicly announcing the date, venues and methods of payment in a central newspaper, a local newspaper where the head office and branches of the insured institution are located for 3 consecutive issues and on a Vietnamese e-journal and display the lists of the insured depositors who shall be paid at the announced venues.
It is highlighted in the regulation that DIV shall pay fees of the bank transfer for insured depositors if depositors receive money through bank transfer. In this regard, depositors, apart from complying with regulations on process and procedures at payment venues, are not obliged to pay fees of the bank transfer. It furthers DIV’s commitment to protect the legitimate rights and interests of depositors.
This regulation took effects from December 1st, 2016 and replaced Decision 87/QD-BHTGVN dated May 28th, 2001 by the General Director of DIV on issuing DIV’s regulation on deposit insurance payment.