Trang Chủ
The DIV's Regional Branch in South Central and Central Highlands (the Branch) is assigned to oversee 08 provinces and cities. Among these, Lam Dong province has 25 PCFs, many of which are large-sized. As of March 2023, in Lam Dong, there were 2 PCFs with total assets exceeding VND 1,000 billion, 6 with total assets between VND 500 billion and 1,000 billion, and 17 under VND 500 billion. Given this, the safety of PCF operations as well as order and safety in the region are top priorities for the leaders of the State Bank of Vietnam (SBV) and the DIV.
On April 20, 2023, a false rumor was spread that Ms. Do Thi Yen, Director of the Ward II PCF in Bao Loc City, Lam Dong Province, had gone bankrupt and fled the area. This led to hundreds of depositors rushing to withdraw their money from the PCF, causing panic and disturbances and negatively impacting both the PCF's operations and the interests of its customers. Upon learning of the situation, the Branch quickly contacted the Ward II PCF, consulted with the SBV's Provincial Branch in Lam Dong, and promptly reported to the DIV's General Director and the Supervision Department.
Many customers come to withdraw money at the Ward II PCF on the morning of April 21, 2023
On April 21, 2023, the Branch formed a support team for the Ward II PCF, headed by Ms. Tran Thuy Binh, Branch's Director, and including a manager of the Examination Department, a manager of the General Department, and an officer of the Supervision Department. The team developed a comprehensive plan to support the PCF and prepared various scenarios to effectively manage the unfolding incident.
On Sunday, April 23, 2023, the team arrived at the Ward II PCF and worked with Mr. Tran Ngoc Vinh, Deputy Director of the SBV's Provincial Branch in Lam Dong, the local police, the Ward II People's Committee, and all the PCF staff to agree on an action plan.
Accordingly, the Ward II PCF set up a procedure for responding to customer money withdrawals. All the staff needed to implement an appropriate communication plan to reassure depositors. Each employee and department were assigned specific tasks. Statements to customers, especially those aiming to reassure customers were consistent. Private rooms were prepared to receive customers, especially priority customers who were determined to withdraw money or customers who showed signs of causing trouble or agitation.
Mr. Tran Ngoc Vinh - Deputy Director of the SBV's Provincial Branch in Lam Dong (left), talks to a depositor at the PCF.
The Branch’s team was divided into two groups to engage with customers, aiming to alleviate their concerns and explain the situation. They also worked out scenarios for coordinating with the SBV’s Provincial Branch in Lam Dong, the local police, and the Ward II People's Committee ... to promptly respond to the situations. At the end of each transaction session, the team held a meeting to review and draw lessons for the next session. The team also recommended the Ward II Police to assign police officers to the PCF due to the expected large number of customers and curious people gathering; control traffic flows to ensure security and order; and send undercover police officers to secretly investigate false information and blend into crowds to grasp the psychological developments of customers.
Additionally, the team proposed the Chairman of the Ward II People's Committee direct heads of residential groups to disseminate through mass media and social networks to people especially, influential individuals, socio-political organizations such as Religious officials, Women's Unions, Retirement Association, Elderly Association, etc.; assign ward officials to maintain order and security, and assist people in taking care of their assets, etc. The team also requested the Ward II PCF to arrange a reasonable number of tables and chairs at the transaction counter to avoid large meetings, arrange 01 counter to serve customers' withdrawals, and issue appointment slips for customers to withdraw money to reduce liquidity pressure.< /p>
On the morning of Monday, April 24, 2023, hundreds of depositors gathered at the PCF to request withdrawals. The team, in collaboration with the SBV's Provincial Branch in Lam Dong, the Police, the People's Committee of Ward II, and related departments responded as planned. The response led to a significant reduction in premature withdrawals, with many depositors reassured and choosing to leave their money in the PCF after being consulted. Some customers with saving deposits at maturity even deposit money back in the PCF.
Ms. Do Thi Yen (left) - Director of the Ward II PCF, and Ms. Tran Thuy Binh - Director of DIV's Regional Branch in the South Central and Central Highlands.
With the team’s efforts and smooth coordination with relevant organizations to implement timely solutions, by April 25, 2023, the bank run at the PCF was basically prevented; security and order in the area were maintained, and no more crowds were formed; transactions such as depositing money, lending, paying interest, etc. at the PCF returned to normal. The number of new depositors rose significantly on the following days: 78 depositors on April 24, 2023; 68 on April 25; 36 customers on April 26; and 61 on April 27. More importantly, the team and related units successfully prevented bank runs at other PCFs in Bao Loc City.
Through these efforts, DIV's Regional Branch in the South Central and Central Highlands contributed to helping related organizations better understand the role of the DIV in protecting the legitimate rights and interests of depositors and contributing to maintaining the stability of the credit institution system, ensuring the safe and sound development of banking activities. Through the process of directly providing advice to depositors at the Ward II PCF, the team promoted depositors' understanding of deposit insurance policy and their legitimate rights and interests at the PCF, thereby strengthening their confidence in the policies of the Party and the Government.< /p>
On May 15, 2023, in recognition of the Branch's contributions, the SBV's Provincial Branch in Lam Dong issued the Official Dispatch No. 316/LAD-TTGSNH praising the Branch for its timely intervention to ensure the safe and stable operation of the Ward II PCF. In addition, the SBV's Provincial Branch in Lam Dong suggested the Branch continue its public relations efforts and cooperation to deal with rumors, reassure depositors, and handle other arising issues if any.
Although the event related to the Ward II PCF took place more than a year ago, the lessons learned in public relations and communication crisis management are still applicable today. As each locality and PCF have different characteristics, each DIV branch and its staff are required to adopt a proactive and adaptable approach to crisis management and draw up a public relations plan targeting the right audience at the right time .
Closely following the orientations and directions set by the DIV for public relations, the DIV's Regional Branch in the South Central and Central Highlands has developed and implemented a various public relations initiatives with more diverse contents as well as targeted audience. Being fully aware of the importance of public relations, the Branch aims to train each officer and employee to be a communicator, contributing to raising public awareness of deposit insurance.
In summary, while the incident at the Ward II PCF in Bao Loc City was resolved smoothly right after the outbreak, the DIV's Regional Branch in the South Central and Central Highlands considers it a valuable lesson for improving its crisis management and public relations in the future, ultimately reinforcing depositors' confidence as well as the regional PCFs' safety with a strong message: "The rights of depositors are always protected by the Government, the SBV, and the DIV according to to the law."
Tran Thuy Binh - Director of DIV's Regional Branch in the South Central and Central Highlands
Research and International Cooperation Department (translation)
