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DIV 5 year - operation
DIV is a State owned financial institution established under the Prime Minister's Decision toprotect the legal right and interests of depositors, making contribution to stabilization of insured institutions and a sound and safe development of banking system. DIV is non profit organization, its duty is to protect the capital allocated by the state, cover its expenses and is exempted from tax by regulations
DIV is a component of the banking and financial system operating relatively separately. It is a monetary policy tool of the state to ensure the safety of the banking system. DIV is an institution operating under specific regulations and is not governed by the law on financial institutions and Law on insurance.
The main activities of DIV are as follows:
- Collect insurance premium
- Supervise insured institutions
- Examine insured institutions
- Provide financial assistance to insured institutions
- Withdraw the deposit insurance certificate
- Reimbursement of insured Deposits
- Debt collection
- Financial investment
After 5 years' operation, DIV has achieved the following results on various aspects:
As far as finance is concerned, DIV has a certain financial resource which is able tomeet the requirements for ensuring the safety of People's Credit Fund system; it can also pay insurance claims for many credit funds and some joint stock commercial banks.
Technology has already helped to collect informationof related authorities and insured institutions for supervision and financial management purpose
14 departments in the Head Office have been established to provide consultancy to the Board Directors and General Director; 6 regional branches were established to support the General Director in implementing DIV functions in regions; a fairly complete organizational structure was established to meet the current operational requirements.
AS for the operation, DIV has implemented the state policies on deposit insurance effectively, issued and withdrew deposit insurance certificates, collected insurance premium, examined and supervised insured institutions, paid insurance claims, processed debts and invested, making contribution to maintaining the stability of financial institutions thus indirectly increasing the fund mobilization from individuals. As at 2004, the total insured amount was 128,641 Billion VND and the total amount of insurance premium was 680 billion dong with the flat premium of 0.15%. Examination has been carried out on a large scale including 107 examinations of banks and non bank financial institutions, 1,422 examinations of people's credit funds. In the financial institution's consolidation phase, DIV made a contribution to paying insurance claims of many credit funds under illiquid situation with an amount of VND 16,337 billion in 33 credit funds from 2001 to 2004. At present, there are 976 insured institutions.
External relation and training: as a newly established insurance model in Vietnam, it is very necessary to learn experience from deposit insurance of developed countries. For the past years, DIV has set up a training program. DIV has held training courses, seminars and sent many staff on study tours overseas. DIV has been officially recognized and become an official member of the international deposit insurance association on 7 February, 2003
