Coming from one of the purposes of deposit insurance activities is to contribute to ensuring stability and security of the national financial system, the beneficiary is the society that the activities of deposit insurance provide socialized services.
Public objectives of the deposit insurance activities for each country depend on the time to make its different decisions, but overall progress has three main target groups: (i) contribution to stabilizing the financial system, (ii) protection of people with small deposits amount, (iii) The other objectives such as promoting healthy competition in the financial sector, reducing the impact of economic recession, economic growth, innovation and reforming to meet the stable financial system maintenance.
Deposit insurance policy in Vietnam, has first been promulgated in 2000, does not work outside the above objectives. This is evident in the Decree of the Government on the deposit insurance policy, "Deposit Insurance of Vietnam is a State financial institution, protects the lawful rights and interests of depositors, contributes to maintaining stability of institutions participating in deposit insurance and the safe and sound development of banking operations”. The policy objectives of the Deposit Insurance of Vietnam (DIV) have been developed and have achieved certain results.
So far, the DIV has reimbursed depositors at 37 failed People's Credit Funds, totaling over 18 billion VND, made financial assistances to pilot the People's Credit Funds who encountered temporary constraints on affordability, conducted inspection and supervision of insured institutions, ... The operations of DIV have contributed to the policy gradually coming to life, and strengthening public confidence in the banking system, promoting social stability, preventing contagions of bank failure in the banking system, and enabling fair competition among banking sectors.
However, along with the development of the country and the economy, the successful implementation of the objectives initially set out to be strengthened and expanded further especially after the lessons drawn from the last economic crisis in improving the position and role of the insurance policy.
Some problems in the deposit insurance policy in Vietnam such as the financial capacity of the deposit insurance institutions, insurance coverage limits, conversion premium based on risks or receiving proposals and credit institutions handling the failed banks, ... should be continued to develop interests by the experts, policymakers to make deposit insurance activities in Vietnam more in-depth and more effective.
“Deposit Insurance of Vietnam promotes the public objectives of deposit insurance policy”
The recent global financial crisis (2008-2010) has affected the economies of many countries around the world. To overcome this difficult period, many solutions have been applied over the world, including the selection of deposit insurance policy is considered as one of the tools to contribute to effectively mitigate