Trang Chủ
1. Successful organization of Second Party CommitteeCongress of DIV for 2020-2025 term
In the spirit of "solidarity - democracy - innovation - development", the 2ndParty Committee Congress of the DIV for the 2020-2025term took place for 2 days on August 23 and 24, 2020. The congress elected the DIV Party Committee’s Executive Committee for the 2020-2025term,consisting of 27 members. At the same time, the first meeting of the Party Committee's Executive Committee elected the Standing Committee of 9 members, the Inspection Committee of the Party Committee comprisingof 5 members; elected Mr. Pham Bao Lam as Secretary of the Party Committee, Mr. Dao Quoc Tinh and Mr. Ha Hong Son as Deputy Secretaries of the Party Committee.
At the 3rd Party Committee Congress of the Centrally-run Businesses’ Sector for the 2020-2025 term (held on October 19 - 21), Mr. Pham Bao Lam - Secretary of the Party Committee, Chairman of the Board of director of the DIV received high credit and was elected to the Executive Committee of the Party Committee of Centrally-run Businesses’ Sector.
2. 20th anniversary of DIV, receipt of Second-Class Labor Medal
On January 11, 2020, in Hanoi, the DIV held a ceremony to celebrate the 20th anniversary of its establishment and receivea Second-Class Labor Medal of the President of the Socialist Republic of Vietnam.
At the ceremony, the State Bank’s Standing Governor Dao Minh Tu said that ”as a State financial institution established by the Prime Minister, which operates for non-profit purposes, over the last 20 years generally and in 2019 particularly, the DIV continued to well undertake the task of protecting the legitimate rights and interests of depositors, contributing to maintaining the stability, safe and sound development of the Vietnamese credit institution system... I would like to congratulate the DIV on receiving a Second-Class Labor Medal – a valuable award presented by the Party and the State right on its 20th anniversary thanks to its achievements in 2019 and over the last 20 years”.
As the DIV is entering a new stage of development, Standing Deputy Governor Dao Minh Tu asked the DIV to focus on a number of key tasks: actively recommending state management agencies to complete the deposit insurance legal framework toward international practices, supplement mechanisms to assist the DIV in improvingits financial capacity, participatingfurther in resolving weak credit institutions; researching and submiting to the National Assembly proposalsto amend the Law on Deposit Insurance for the 2021-2025period;developing the DIV as a state financial agency operating under the one-member limited liability company model, in which the whole charter capital is owned by the state, with the State Bank as State ownership representative and with an effective organization structure...; gradually upgrading the model, enhancing the roles, functions of the DIV towards a multi-functional financial institution undertaking tasks of deposit insurance, financial investment, direct participation in restructuring the system of credit institutions, supervision and examination for ensuring systemic safety.
3. Prime Minister appoints Chairman of DIV Board of Directors; DIV’s leadership strengthened
On July 31, 2020, Prime Minister Nguyen Xuan Phuc signed the Decision No. 1162/QD-TTg appointing Mr. Pham Bao Lam - Director General of the Issue and Vault Department of the State Bank as Chairman of the Board of Directors of the DIV. The decision took effect on the date of signing.
At the ceremony to announce the Prime Minister’s decision, Mr. Pham Bao Lam, new Chairman of the Board of Directors of the DIV, pledged to continue to make best use of the experience and achievements of previous generations of leaders, coordinate with the Board of Directors, all officers and employees of the DIV to promote strength, solidarity, successfully fulfill the assignedstrategic objectives and tasks.
Also in 2020, the State Bank appointed a full-time member of the Board of Directors and 2 Deputy General Directors of the DIV.
Thus, in 2020, the Government and the State Bank paid attention to strengthening the DIV’s leadership, supporting the DIV to well perform the assigned functions and tasks.
4. Completion and submission of Draft of Deposit Insurance Development Strategy to 2025, withorientations to 2030 to State Bank
The DIV completed and submitted to the SBV the Draft of Deposit Insurance Development Strategy to 2025, with orientations to 2030 in order for the State Bank to submit it to the Prime Minister for approval.
The development of the Deposit Insurance Development Strategy to 2025, with orientations to 2030 is essential for the DIV and considered as the basis for the DIV to effectively implement deposit insurance policy, well perform the task of protecting legitimaterights and interests of depositors, contribute tomaintaining the stability of the credit institution system and ensuring safe and sound banking activities.
5. Announcement of Prime Minister’s draft decision on increasing deposit insurance coverage limit
On July 29, 2020, the Government announced the draft Decision of the Prime Minister on raising the current deposit insurance coverage limit of VND75 million.
According to the draft Decision, the maximum amount of insurance to be paid for all insured deposits according to the Law on Deposit Insurance (including both principal and interest) of a depositor with an insured institution shall be VND 125 million.
With the proposed new coverage limit, 90.94% of depositors in the banking system are fully protected, in line with the the range of 90. % - 95% recommended by the International Association of Deposit Insurance (IADI). This is a step closer to international deposit insurancepractices and meets the practical needs of Vietnam, demonstrating the efforts of the Government and the State Bank in protecting the interests of depositors.
6. Review of implementation of Law on Deposit Insurance to report to State Bank
At the same time, the DIV has actively researched and made more proposalsunder the directions of Standing Deputy Governor Dao Minh Tu, so that the DIV can participate more deeply and effectively in the process of restructuring credit institutions; at the request of the Banking Supervision Agency for granting insured institutions exemption from and reduction of deposit insurance premiumsand deferment of deposit insurance premiums payment for cases such as natural disasters, epidemics and other special cases ...
7. Synchronous and effective implementation of operations
As of December 18, 2020, the total amount of collected deposit insurance premiums was VND8,322 billion, achieving108.7% of the premium collection plan assigned by the State Bank, an increase of 13% against 2019. Total invested temporarily idle capitalwas VND 67,688.3 billion (an increase of 19.3% against December 31, 2019) and in 2020, the DIV invested VND 20,228.4 billion, reaching 105.2% of the plan assigned by the State Bank.
The DIV conducted on-site examinationtogether with supervision to promptly detectand propose solutions for violations of the Law on deposit insurance, prevent frauds and profiteeringon deposit insurance policy. The DIV completed periodic examination of 364 institutions; completed examination of 18/18 PCFs in accordance with the direction of the State Bank’s Governor, at the same time, developed a periodic examination plan for 2021 and assigned relevant units to implement the plan i.
In 2020, the DIV also summarized the 5- year operation of the Steering Committee for supervision, examination and resolution of problematic PCFs. According to General Director Dao Quoc Tinh, the achievements of the Steering Committee had significantly contributed to the fulfillment of the political tasks of the DIV.
General Director Dao Quoc Tinh stated that the DIV would continue to improve the quality of the supervision and examination of insured institutions, especially weak People’sCreditFunds (PCFs); actively participate in the process of handling credit institutions in accordance with the direction of the State Bank, which should form a basis for the DIV to participate more deeply and effectively in the process of restructuring and handling bad debts in the coming time.
8. Amendments and supplements to DIV’s financial regime
On April 1, 2020, the Ministry of Finance issued the Circular No. 20/2020/TT-BTC on amendments and supplements to some articles of the Ministry of Finance’s Circular No. 312/2016/TT-BTC dated November 24, 2016 on the financial regime for the DIV. The new Circular took effect on May 20, 2020.
The Circular No. 20/2020/TT-BTC provides guidelines on the DIV’s two new operations regarding funding and the handling of losses when risks occur in the DIV’s special lending to credit institutions placed under special control, as well as the trading of long-term bonds of supporting credit institutions in accordance with the Law on amendments and supplements to some articles of the Law on Credit institutions dated November 20, 2017.
Firstly, the DIV may use its operational reserve fund to implement this operation. However, the DIV must ensure its capability to reimburse depositors and closely monitor its loans and promote debt recovery to minimize the risk of capital loss.
Secondly, the DIV may use its temporary idle capital to buy long-term bonds of supporting credit institutions under the State Bank’s decision.
In the event of a loss, the DIV may use its risk provisions to cover the loss as regulated. The operating expenses shall be used if its risk provisions are insufficient to cover the loss.
9. First ever organization ofContest on deposit insurance operations at whole-system level
onApril 3 and 4,the Contest was held in the form of a game show with the content revolving around professional knowledge of deposit insurance.The contest attracted the participation of 09 teams representing the Headquarters and 08 regional branches.
This was an opportunity for DIV staff to demonstrate their professional competence, intelligence and creativity; at the same time learn and exchange experience with colleagues, contributing to renovating their working methods, improving theirworkingquality.
The contest was successfully held,showing the spirit of solidarity and determination to perform assigned political tasks. It was also an opportunity for each DIV officer to learn from each other and train to become an active "communicator" who spreads deposit insurance policy to the public.
10. Active international cooperation and exchange
In 2020, despite complicated developments of the Covid-19 pandemic, the DIV actively strengthened international cooperation activities to learn, share experience and improve the efficiency of the deposit insurance system in Vietnam.
Specifically, the DIV attended online conferences, seminars and training courses organized by the IADI, APRC and other international organizations; participated in joint research activities and IADI surveys... effectively participated in international cooperation, contributing to enhancing the reputation of the DIV, thereby contributing to maintainingand strengthening relationships with many deposit insurers around the world.
