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Supervision and examination are two key deposit insurance professions
According to Mr. Ha Huy Tuan - Former Vice Chairman of the National Financial Supervisory Commission, in deposit insurance operations, supervision and examination are considered as two spikes that contribute to supporting safe and healthy operations of credit institutions.
For supervision, this operation is divided into 2 types: Compliance monitoring - monitoring the observance of legal regulations and Risk monitoring - ie, despite the compliance with regulations prescribed by law, but in any case, risks can still arise, especially in the operation of the system of credit institutions.
Regarding examination operations, Mr. Ha Huy Tuan said, this operation is divided into 2 types: Periodical examination - directly performing examination and evaluation at credit institutions according to the prescribed predefined procedures; and Unscheduled examination when there are abnormal signals in the operation of credit institutions detected during the supervision work.
According to Mr. Ha Huy Tuan, supervision is one of the key operations of the DIV, contributing to the best protection of depositors and improving public confidence in the banking and financial system.
Supervision is carried out regularly on the basis of information and data sources on the activities of insured institutions. Currently, DIV performs offsite supervision for 100% of insured institutions in order to promptly detect weaknesses and violations to propose the SBV to have solutions to rectify and handle.
Along with supervision, the DIV carried out the planned examination of the insured institutions, in which the examination of a number of people’s credit funds was carried out under the direction of the SBV Governor. In the context that there are still weak people's credit funds, the DIV pays special attention to in-depth examination to detect and recommend the SBV to promptly handle violations; detect inadequacies in mechanisms and policies to propose amendments and supplements to protect the legitimate rights and interests of depositors.
"For the field of supervision and examination as mentioned above, I think that over the past time, DIV has effectively implemented these two operations, especially for the People's credit fund system" - Mr. Ha Huy Tuan affirmed.
Protecting the interests of depositors, participating in restructuring the PCF system
Mr. Vu Van Long - Deputy General Director of DIV said, DIV is currently protecting more than VND 7 million billion of depositors at 1,283 insured institutions (including 97 banks and foreign bank branches, 1 cooperative bank, 1,181 PCFs, and 4 microfinance institutions).
Along with supervision and examination, the DIV also performs other operations to protect the interests of depositors and contribute to ensuring the safety of credit institutions such as: Issuing Certificate of participation in deposit insurance; collecting of deposit insurance premiums; investing temporarily idle capital; communicating deposit insurance policies to raise depositors' awareness of deposit insurance policies and increase their confidence; participating in the special control process for weak credit institutions.
In case the insured institution is closed, the DIV shall make timely payment to depositors; at the same time participate in the liquidation and handling of assets of these units in accordance with the provisions of law.
According to Mr. Vu Van Long, the target of DIV is small depositors at small-scale insured institutions such as the People's Credit System, who are vulnerable to adverse developments in the financial and banking system.
“In the event that a risk occurs during operation, leading to the closure of PCFs, the DIV with its current financial capacity can guarantee payment of deposits to PCFs; so that there will be no impacts or unsafety to the credit institution system," emphasized Mr. Vu Van Long.
It can be said that the active implementation of professional activities has contributed to increasing the role and position of the deposit insurance organization in the process of restructuring and dealing with bad debts of credit institutions over the past time, especially for the PCF. Typically, the DIV's duties are assigned in the Law amending and supplementing the Law on Credit Institutions 2017 such as: Participating in special lending to credit institutions, buying bonds from supporting banks, participating in special control, and evaluating restructuring project… In case the credit institution is unable to recover and fails to implement restructuring measures, leading to the handling of legal entities, the DIV actively participates in the bankruptcy plan, takes part in handling and liquidation of the assets of these organizations in accordance with the law. This new mandate helps the deposit insurer to be more proactive in protecting the interests of depositors by assisting in the recovery of troubled PCFs.
In addition to professional activities, the promotion of deposit insurance policies over the past time has also actively contributed to strengthening depositors' confidence in the operation of the system of credit institutions in general and people's credit funds in particular.
Mr. Ha Huy Tuan - Former Vice Chairman of the National Financial Supervisory Commission said that disseminating 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 misinformation in banking activities.
Mr. Ha Huy Tuan said that, over the past time, the DIV has effectively built and developed many communication products, including two official communication channels, namely the website and the deposit insurance bulletin, to convey the voice of the organization as well as create a forum attracting many public audience and serve as a source of reference information for depositors as well as relevant agencies.
In addition, the DIV is also proactive in offering communication products and tools such as: Deposit insurance manuals, leaflets, handbooks, posters, standees, video clips, etc. . They are presented visually, close and easy to understand, making it easy for the public to receive.
Providing more information on this issue, Mr. Vu Van Long - Deputy General Director of the DIV said, with the wide coverage of information in printed newspapers, electronic newspapers, radio and television; DIV also disseminates deposit insurance policy through a very popular and mass channel - the VNPOST Postal System, which has now covered all remote, mountainous, and island areas. Through VNPOST's network, the DIV conveys deposit insurance policies to depositors in these areas.
In order for the DIV to increasingly promote its role as a reliable companion of depositors as well as contribute to ensuring the safety and soundness of the People's Credit Fund system, Mr. Vu Van Long said, in the coming time, DIV will continue to improve the deposit insurance policy through practical actions. Specifically, DIVwill develop a communication strategy after the Development Strategy of Deposit Insurance to 2025, with a vision to 2030 is officially approved by the Prime Minister.
The DIV will conduct a survey on the public's and depositors' awareness of the deposit insurance policy in order to develop a communication strategy based on that.
Along with that, they will diversify communication products to ensure suitability for each audience such as depositors, insured institutions and State management agencies.
DIV will perfect the institution in the direction that the insured institutions - the direct beneficiaries of the deposit insurance policy, are also responsible for coordinating with the DIV to promote the deposit insurance policy to the target public.
