Trang Chủ
Article 12 of the Law on DI sufficiently states credit institutions’ rights of deposit insurance participation, specifically: (i) to be granted a certificate of deposit insurance participation and re-granted freely in case of lost, torn, damaged certificates (ii) To require the DIV to make payouts to insured depositors at the insured institution when insurance payment duty arises (iii) To claim against, denounce or sue agencies, institutions, individuals involved in deposit insurance as legally stipulated.
Besides the legally stipulated rights, credit institutions enjoy other benefits through DIV’s operational activities, including:
1. To be subject to low premium rates (when DIV implements the risk-based premium system in the future) as long as the State Bank of Vietnam (SBV) assesses their risks as low or risk-free. Credit institutions are able to lower the expenses considerably if participating in deposit insurance which will in turn contributes to increasing the operational profits.
2. To be trusted by people so that they will deposit to and feel assured for long-term bonding, which contributes to establishing a low cost and stable fund for credit institutions through DIV’s dissemination activities on DI policies. This privilege is essential for small and medium size credit funds which suffered tremendously due to the lack of confidence following the massive failure of credit corporative institutions in late 80s.
3. To consult with and receive free support for DI and banking operational activities through DIV’s onsite examination;
4. To be early detected for potential risks and losses in banking activities through DIV’s supervision, thus helps them timely and actively implement corrective actions to mitigate risks and losses, contributes to the stability and effectiveness of operation.
Meanwhile, in order to get the above benefits, credit institutions have to comply with relevant obligations when participating in deposit insurance as provided at Article 12, the Law on DI: (1) No later than 15 (fifteen) days before the date of opening operations, insured institutions shall submit application dossiers for certificates of deposit insurance participation; (ii) Insured institutions shall publicly display copies of certificate of deposit insurance participation at all business offices accepting deposits; (iii) Calculate and pay premiums sufficiently and timely as stipulated; (iv) To provide information on insured deposits periodically or as required by the deposit insurance organization; (v) Timely contact DIV for granting and re-granting certificates of deposit insurance participation or when insurance payment duty arises as provided by the Law on DI so that DIV will guide the procedures and solutions in a timely manner.
So as to enjoy fully the benefits for deposit insurance participation and not to be administratively sanctioned for violations, credit institutions must pay attention to and seriously follow their obligations as provided by deposit insurance legal documents.
