Active implementation of communication activities under the Law on Deposit Insurance

08:30-01/12/2017

In the context of the enhanced credit institutions restructuring process, the role of the Deposit Insurance of Vietnam (DIV) as a policy tool of the Government and the State Bank of Vietnam (SBV)  to protect depositors and ensure the safe and sound development of the banking operation attracts the public attention. Since the beneficiary is the whole community, the deposit insurance (DI) policy dissemination is one of the most important activities of the DIV. This article discusses some issues related to the communication activities as provided by the Law on deposit insurance (DI Law) and the development orientation in the coming time.

The DI Law promulgated by the National Assembly on 18th June 2012 came into effect on 1st January 2013. The introduction of the Law and the bylaws has contributed to enhancing  public awareness on the role of deposit insurer, thus promoting the mobilization of temporarily idle capital from the public to serve and develop the economy.

Clause 14, Article 13 of the DI Law prescribes the rights and obligations of deposit insurer as "To organize public awareness activities regarding policies and legislations on deposit insurance; to organize training courses on deposit insurance, to conduct applicable researches on science, technology and management methods in compliance with the development needs of the deposit insurer ". On that basis, the DIV has identified main contents in DI policy dissemination , specifically as follows:

- Conducting the communication of practical activities, shortcomings and difficulties in implementing policies to improve the mechanism and DI policies combined with the introduction of the DI Law in the form of organizing conference, seminars to exchange professional knowledge;

- Improving quality of publications and the website. Publishing and introducing publications with contents of communication such as introducing the DIV, Q&A on DI policies, interviewing economists on newspapers, radio, television, website; organizing contests on knowledge of DI policies and DIV's activities, conducting surveys on public awareness of DI Law; Introducing DI knowledge into college curriculum, especially for the colleges specialized in banking and finance.

- diversifying communication campaigns and dissemination products, implementing solutions to improve the DIV’s public recognition through the promotion of logo and slogan.

- Receiving feedbacks on the implementation of the DI Law;

- Disseminating DI policy  through professional activities, specifically:

+ Through the examination: by combining the on-site examination with consulting on issues related to the DI objectives and DI policy, and the DIV’s function of  depositor protection, thereby contributing to enhance depositors confidence in the banking and financial system.

+ Through the DI reimbursement: The timely and sufficient reimbursement to depositors at failed insured people’s credit funds (PCFs) has contributed to strengthening depositors' confidence in DI policy. The effective communication before, during and after the process DI reimbursement at these PCFs has helped to reassure people to come back and deposit their money at the  insured institutions in the locality. This has helped to attract temporarily idle capital among the population, contributing to the sustainable development of credit system in the area.​

+ DI policy communication at events organized by the insured institutions: directly communicating to the public at biannual and annual general meetings of insured institutions.

In the coming years, in order to improve the efficiency of the DI policy dissemination for better supporting professional activities, the  DIV should continue to realize some orientations as follows:

- On promoting some recent achievements, the DIV should boost  dissemination programs  more selectively for each stages  combining with professional activities, especially focus on the implementation of the DI Law and guiding documents;  contribute to the development of administration documents and  the implementation of the Financial Sector Modernization and Information Management System Project.

- The DIV should also nurture the relationship with media agencies by providing them with timely and accurate information, organizing press conferences in cases of need, regularly exchanging information with these agencies both inside and outside the banking and financial industry to effectively disseminate the DI policy and DIV’s image.

- It would be good orientation to develop more advanced forms of communication such as direct customer access, specific information provision to target depositors, projects with participants who are students of financial and banking speciality.

- The DIV should make the best of  the interest and support from relevant agencies, especially the State Bank of Vietnam provincial branches and local authorities in order to push communication activities closer to the target beneficiaries and the public.

- Officers who are in charge of DI policy communication at DIV local branches should be trained about communication and press profession.

DIV’s Research and International Cooperation Department