Trang Chủ
Amendment of the Law on Deposit Insurance - better protect the interests of depositors
Mr. Dao Minh Tu - First Deputy Governor of the SBV
The Deposit Insurance of Vietnam (DIV) should continue to review and propose the basis contents to amend and complete the Law on Deposit Insurance and legal documents in consistent with international practices and supplement mechanisms for DIV to improve financial capacity, participate more deeply in the process of restructuring credit institutions.
While waiting for the Law to be revised, DIV should actively coordinate with the Banking Supervision Agency to propose and research plans and solutions to participate more strongly in the restructuring of People's Credit Funds (PCFs) with the deposit insurer's resources.
It is important to improve the financial capacity of DIV through the following measures: Diversifying forms and investment portfolios; increasing charter capital to VND 10,000 billion by 2025 and VND 15,000 billion by 2030; ensuring revenue from deposit insurance premiums; developing a mechanism to access support in case the deposit insurance fund is temporarily insufficient to reimburse.
Mr. Vu Nhu Thang - Vice Chairman of the National Financial Supervision Commission
Since the Law on Deposit Insurance was born, with the movement and development of Vietnam's financial and banking market, the Law on Deposit Insurance has revealed a number of shortcomings.
Some contents can be shown: the current law does not clearly stipulate insured deposits; deposit insurance premiums are not risk-based so it is not an incentive for transparency in financial markets; regulations on professional examination and supervision of DIV still have many limitations; DIV does not have many functions in participating in the restructuring of credit institutions, for dealing with weak credit institutions only limits to the PCF and microfinance institution system; the role, position, and coordination mechanism of the DIV with other agencies in the national financial safety net have not been specifically legislated.
Therefore, in order to improve the effectiveness of law enforcement and further promote the role of the deposit insurance policy, the amendment and supplementation of the current Law on Deposit Insurance is an urgent requirement.
Mr. Ta Quang Don - Director of the Legal Department of the State Bank of Vietnam
In addition to the achievements, the Law on Deposit Insurance has several shortcomings, which need to be studied for amendments and supplements. Some regulations need to be re-evaluated to suit the current situation and legal system.
On the other hand, several regulations need to be amended and supplemented to ensure consistency with the revised Law on Credit Institutions (2017), specifically regulations for DIV to participate more deeply in the restructuring process of credit institutions, especially for the PCFs. Thereby, increasing resources for restructuring credit institutions, and creating a basis for the deposit insurer to perform the newly assigned tasks as well as promote more effectively its role as an organization to guarantee the right of depositors in Vietnam at the same time.
Mr. Nguyen Quoc Hung - General Secretary of Vietnam Bankers Association
In the coming time, the National Assembly, the Government, and SBV should complete the legal framework on deposit insurance, specifically amending the Law on Deposit Insurance so that DIV effectively participate in the restructuring of credit institutions, firstly for the PCFs.
In addition, it necessary to do research and give more appropriate powers to the DIV to better assume the role and responsibility of protecting the legitimate right of depositors, and to maintaining a safe and healthy credit institution system.
In the long term, it is necessary to further improve the professionalism, financial potential as well as institutions so that DIV can effectively handle banks with below and average total assets when necessary.
Ms. Nguyen Thi Mui - Member of the National Financial and Monetary Policy Advisory Council
I think that the first thing that needs to be amend of the Law on Deposit Insurance in the coming time is the contradiction and overlap with the Laws regulating monetary and banking activities; thereby the system of credit institutions in Vietnam will operate smoothly, easily and healthily, gradually improving people's confidence in credit institutions.
Next, in order for the DIV to continue promoting the tasks assigned in the Law on Credit Institutions amended in 2017, as well as in other documents. While the Law on Deposit Insurance has not been amended and supplemented, should it be provisions lower than the Law or even lower than the Decree to create conditions for the deposit insurer to perform its role well? For example, improve financial capacity, invest in technology development to enhance information monitoring capabilities. Because of banking activities, if the information is incomplete, inaccurate and untimely, it will greatly affect the health of the system of credit institutions.
Mr. Nguyen Minh Phong - Economic expert
Besides the insurance payment of DIV, the DIV also used its financial resources to make special loans when participating in the special supervision of PCF under the Law amending and supplementing a number of articles of the Law on Credit Institutions 2017; Clause 13, Article 13 of the Law on Deposit Insurance and Decision No. 593/QD-BHTG dated September 7, 2018, as well as guiding the implementation of regulations on special lending to specially controlled credit institutions No. 1327/HD- Deposit insurance on October 29, 2019.
With the scope of assigned functions and tasks, the DIV should coordinate with the SBV to propose amendments and supplements to the Law on Deposit Insurance and relevant regulations in promoting the role and use of the deposit insurance's resources to support, handle weak PCF, ensure the safety of the PCF.
Promote communication and raise people's awareness about deposit insurance
Mr. Do Duc Hong Ha - Vice Chairman of the Judiciary Committee of the National Assembly
In recent years, DIV has made positive contributions to the implementation of deposit insurance policies, contributing to promoting the development of official credit mobilization channels into the banking system, joining hands with the Government and the SBV in the fight against usury.
In particular, the deposit insurance policy should be widely communicated. I know that DIV has also developed a Deposit Insurance Handbook for depositors so that people can easily access and learn about policies.
In the coming time, the DIV should continue to promote deposit insurance policies, focusing on creating policy spillovers to people in rural and remote areas.
DIV should strengthen connections with PCFs and microfinance institutions to spread out deposit insurance policies. Thereby, improving depositors' confidence, increasing capital sources for people's credit funds, microfinance institutions; synchronously combining other policies so that people's credit funds and microfinance institutions have conditions for safe, healthy and effective development; proving to be a reliable address for depositors, especially people in rural, remote and isolated areas to deposit or borrow money, gradually eliminating "black credit" .
Mr. Tran Ngoc Ha - Director of the Criminal Police Department-Ministry of Public Security
In my opinion, it is necessary to regularly evaluate and summarize to improve policies and regulations on deposit insurance and better protect depositors. People must realize that, through deposit insurance regulations, they are protected. For example, the deposit insurance coverage limit should be periodically reviewed and adjusted in accordance with the actual socio-economic situation, market demand, etc.
On the other hand, it is necessary to expand communication channels so that depositors and people know and understand about deposit insurance as well as information related to deposit activities and banking transactions. When people are fully - timely - officially informed, they will make the right choice instead of easily falling into informal credit traps, including usury activities.
Mr. Nguyen Quoc Hung - General Secretary of Vietnam Bankers Association
DIV as well as insured institutions need to promote communication, so that people can fully understand the State's policy in protecting their rights when depositing money at insured institutions. This will help people to be careful and choose to deposit money at legitimate and reputable depository institutions instead of just paying attention to interest rates.
Insured institutions, besides promoting new products and services, should strengthen coordination with DIV in the process of re-issuing the Certificate of participation in deposit insurance related to the deposit insurance coverage limit; implementing communication activities on deposit insurance policies on publications and products of the banks. At the same time, at transaction points, it is required to display Certificate of participation in deposit insurance so that depositors know their legal rights when depositing money at credit institutions.
For DIV, the basic objective is to protect the interests of depositors and contribute to ensuring the national financial safety. To improve public confidence, in upcoming time, DIV needs to strengthen its financial capacity and improve the quality of its professional operations; at the same time, promoting communication, combining dissemination of financial knowledge and deposit insurance to depositors.
Mr. Ha Huy Tuan - Former Vice Chairman of the National Financial Supervision Commission
Communicating policies and laws on deposit insurance is an important operation in the financial market in the current context, especially for depositors - who make up the majority of the population but are vulnerable to false information in banking activities.
Over the past time, DIV has effectively built and developed many communication products, including two official communication channels: the official website and the Bulletin of deposit insurance, to convey the voice of the organization, as well as become a forum to attract audience and is a reference source for depositors and relevant agencies.
In the coming time, in order to further strengthen depositors' confidence in the operation of the system of credit institutions, in addition to continuing to improve the products and communication tools that have been done well in the past time, the DIV needs to do research and refer to international experiences in communication activities to raise public awareness, especially choosing a form of conveying policy content that is intuitive, close, and easy to understand, making it easy for the public to access and create even greater influences.
Ms. Nguyen Thi Mui - Member of the National Financial and Monetary Policy Advisory Council
One content that I think is very important in the Strategy on deposit insurance development to 2025, with orientation to 2030 is "public awareness". To perform the political task of protecting the legitimate rights and interests of depositors, contributing to ensuring the safe operation of credit institutions, preserving the public's trust in the banking system, the DIV needs to determine the target awareness level, and consider this as a premise to continue promoting communication in the next period.
Ms. Ta Thi Anh – Deputy Director of Hung Viet People's Credit Fund, Cam Khe, Phu Tho
I hope that the communication activities and promotion of the deposit insurance policy will be carried out progressively in order to bring the policy and the image of the DIV to the people in a broader way, so that the deposit mobilization of the PCF is also carried out like that of commercial banks, which will be easier and more effectively.
The DIV can promote the organization of communication events with the participation of depositors and credit institutions where people deposit money, because these are opportunities for people to directly listen to the introduction of the DIV staff; comprehensively and specifically the provisions of the law on deposit insurance, depositor protection mechanisms, so that people have more confidence in the policies of the Government, and feel secure with the protection of SBV and DIV, assuring the safe and healthy operation of credit institutions
Finally, we hope that the deposit insurer will play a central role in spreading the policy of deposit insurance to depositors more widely, through insured institutions in the deposit insurance system. Therefore, the deposit insurance policy will maximize its effectiveness as a tool for depositors' safety.
