DIV’s meeting to realize corporate plan for the second half of 2017

15:41-14/09/2017

Inthe morning of July 06th 2017, the Deposit Insurance of Vietnam (DIV)helda meetingon the implementation of corporate plan for the finalsixmonths of 2017. The meeting was attended by Mr. Nguyen Quang Huy Chairman of the Board of Directors (BoD); Mr. Dao Quoc Tinh –BoD Member - General Director of the DIV;andother BoD Members, Comptrollers, Heads ofall departments at the DIV’s headquarters; Directors and department heads of the DIV’s regional branches as well as representatives of the DIV’s staffsover the wholesystem.

The meeting attendants made reviews and discussions on the DIV’s Performance Report for the first half of 2017 and the Corporate Plan for the final6months of 2017; also the 6-month Performance Report and the final6-month Corporate Plan ofthe SteeringBoard of Supervision, Examination, Resolution ofproblem people’s credit funds; and reportsonsome contents of corporate finance andthe implementation ofthe Action Plan on ThriftPractice and Waste Combat in the banking industry in general and the DIV in particular.

 

The meeting was co- chaired by Mr. Nguyen Quang Huy - Chairman of the Board of Directors (BoD);

and Mr. Dao Quoc Tinh – BoD Member - General Director

The DIV’s Performance Report over the first half year and Corporate Plan for the second halfyear showed that during the first 6months , the DIV actively made proposals to State Bank of Vietnam (SBV) to amend some contents of the Charter on the organization and operation of the Deposit Insurance of Vietnam for better adapting to actual conditions.The DIV also hadcomprehensive commentson the Draft Law on amendment and supplement to the Law on Credit Institutions and the parliamentaryresolution on trial period of resolving bad debts of credit institutions. Inthe current stage of strongly restructuring credit institutions, the DIV has made intensive researches and proposed an increase in deposit insurance coverage limit to the SBV for submission to Prime Minister for approval. On June 15th 2017, the Prime Minister signed the Decision No.21/2017/QĐ-TTg on deposit insurance coverage limit. Accordingly a new deposit insurance coverage limit would be applied at 75 million VNDs effective from August 5th 2017 (increasedby25 million VNDs) This increasewas aimed to maintain a good balance of economic benefits in the market, then strengthendepositors’ confidence in the nationalfinancial and banking system; meanwhile improvingdeposit insurer’s statusin the process of restructuring credit institutions. The DIV has then proactively built up plans and carried out professionaloperationsin accordance with the Decision No.21.

The DIV’s professionalactivities such as granting and revoking Certificates of Deposit Insurance; collecting deposit insurance premiums; temporarily idle capital managing and investing ; reimbursing deposit insurance and taking part in managementand liquidation of assets; conducting off–site supervision, on-site examination and taking part in resolution of weak people’s credit funds; doingpublic awareness activities; v.v. have been executedsimultaneously, effectively in compliance with legal regulations.

As of 30th July 2017, thetotal DIV’soperating fund was more than 33 thousand billionVNDs, increasing by 19.2% compared to the same period of 2016. Most of the temporarily idle capital was invested in Government bonds.

Over the first 6 months of 2017, the DIV conductedexamination of141 insured institutions, including 123 people’s credit funds and 18 commercial banks. The examination was completed as planned.

The DIV has also continued to boost a variety of public relations activities such as delivering information leaflets, organizing communication activities at insured institutions, posting articles on prestigious newspapers and magazines, regularly updating international and domestic deposit insurance activities on the DIV’s Bulletin published quarterly and on website. Besides, the DIV together with the SBV and mediaagenciesbuilta PR plan on broadcasting deposit insurance policyon popularTVprogramssuch as the “Law and life” – hosted by the Board of Science and Education – under the VietnamTelevision, Finance-Banking talk show – hosted by the Television Channel of People,  etc. Especially, with the Prime Minister’s decisionon the new deposit insurance coverage limit, the DIV extended public awareness activities highlighted on deposit insurance coverage limit.

The DIV isalways concerned about employee training, development, and organization consolidation . In particular, on occasions of 15-year anniversaries of the DIV’s branches over the first 6 months of 2017 and in order to timely encourage all staffs and create a more positive working environment, the DIV launched a movement to run for excellence on task fulfillment , conducted voting and assessment of excellent individuals and departments for giving awards.

The DIV actively participated in commonresearch activities of the International Association of Deposit Insurers (IADI) and surveys of the Asia Pacific Regional Committee (APRC). The DIV cooperated with other financial organizations domestically and internationally to hold and attended many working programs; cooperated with the Depositors Protection Fund (DPF) of Laos to organize the conference on deposit insurance in Vietnam in 2017; combined with the SBV to receive and organize an exchange conferenceon the Deposit Insurance of Vietnam for the delegation from the National Bank of Cambodia. Besides, the DIV has been actively building a working plan for the Annual General Meeting of APRC 2018 which will be hosted by the DIV in Vietnam in 2018.

Early in 2017, the DIV put the HW-SW system into use and the reviewed the application of the software in practical operations. Besides, the DIV incooperationwith related parties made Report of Service Termination, conducted procedures oftaking overand liquidating bidding packages within the framework of the Project of Financial Sector Modernization and Information Management System (FSMIMS) – Deposit Insurance of Vietnam Component.

Based on the direction of the government, the SBV Governor, the banking industry action program, the assigned duties and the corporateplan for2017, the DIV worked out worked out core missions and solutionsfor the final6 months of 2017 as follows:

- To continuerenovatingthe managementcompetence in order to enhance capacity, effectiveness, publicity and transparency in professionaloperations;

- To accomplish the DIV’s “Development strategy towards 2020 and vision towards 2025”. Moreover, the DIVshould conduct more researches and make proposals to the SBV to submit to the Prime Minister onsome amendments to the Law on Credit Institutions in the direction that theDIV would deeply participate in the credit institution restructuring process;

- To continue implementing fully and effectively the DIV’s functions and duties such as  deposit insurancepremiumcollection, deposit insurancereimbursement, off-site supervision, on-site examination, PR, , participation in special control process, assets management and liquidation as regulated by law and directions of the SBV.

- To actively implement all professionaloperations in compliance with the Decision No.21/2017/QĐ-TTg datedJune 15th 2017 onthe increase of deposit insurance coverage limit; focusing on timely and promptly granting and revoking Certificates of Deposit Insurance in order to enhance the communication on the new deposit insurance coverage limit, diversifyingcommunicationchannels and renovating advertising products in order to outreachpeople atthe countryside and remote areas.

- To effectively invest the temporarily idle capital and continuously improve financial capacity as set out in the 2017 financial plan and soon build  2017financial plan for Ministry of Finance and the SBV’s review.

- To continuously implement ThriftPractice and Waste Combat Program under the guidanceofthe SBV; attempt to save costs by at least 5%, simultaneously ensure meeting professional requirements and fulfilling tasks as planned.

- To develop the human resourcesto keep up with the developmenttrendof the Vietnam’s banking system, to build a staff team with professional competence, ethics and style.

- To focus on the investment for  constructing and upgrading information technology system, technological application softwares; to continue the application, operation and usage of FSMIMS Project’smodules. . To promote applied research and international cooperation in order to gradually take international standards into the DIV’soperations.

Mr. Nguyen Quang Huy – Chairman of Board of Directors speaks at the meeting.

Speaking at the meeting, Mr. Nguyen Quang Huy highly appreciated the efforts and outcomes of the DIV’s system in the first 6 months of 2017. In order to operate effectively in the new situation and meet the requirements of new tasks during the process of credit institutionsrestructuring, Mr. Nguyen Quang Huy highlighted on the operations that need to be implemented in the final6 months, focusing on proposing and building deposit insurance policy, enhancing professional activities such as examination, supervision, improving financial capacity, … This will serveto better protect legitimaterights of depositors, contribute to maintain the stability of credit institution system and ensure banking system safety, especially to accumulate resourcesfor actively taking part in the credit institution systemrestructuring in the period of 2016-2020.

DIV’s Research and International Cooperation Department