DIV launches 2018 corporate plan

The meeting was also attended by Mr Dang Van Tuyen – Deputy Director of the SBV’s Personnel Department, Mr. Khuat Duy Tuan -  Deputy Director of the SBV’s Emulation and Rewarding Department. The DIV’s leaders present at the meeting included Mr Nguyen Quang Huy – the DIV’s Secretary of the Party Committee and Chairman of the Board of Directors (BoD) and other BoDmembers. Mr Dao QuocTinh – Deputy Secretary of the Party Committee, BOD member, General Director and other members of the Board of Management (BoM); controllers, department headsof the DIV’s headquarters and Directors and department heads of the DIV’s regional branches.

Many important issues of the DIV were reviewed and discussed at the meeting including: Report on the 2017 corporate performance and launching the 2018 corporate plan; Report on the 2017 emulation and rewarding activities and launching 2018 emulation; the 2017 financial performance and the 2018  financial plan ; Report on the 2017 performance of Steering Board, Steering Group of the supervision, examination and resolution of troubled people’s credit funds and the 2018  Plan. Also, some professional reports were presented focusing on some deposit insurance (DI) operations such as: On-site examination conducted by the DIV to contributeto protecting legitimate rights and interests of depositors, Effective implementation of regulation on reporting and information exchanging on insured deposits; Some recommendations for effective realization of DI policy and enhancement of cooperation and information exchange between the DIV and the SBV…

Meeting all targets

Making some remarks aboutthe DIV’s results in 2017, the DIV’s General Director Dao QuocTinh stressed that: along with the successes of the banking sector, the DIV accomplished well the planned targets. Besides, Mr Dao QuocTinh clarified some issuesand measures for improving financial capacity, productivity, supervision and examination of insured institutions for “the DIV to sustainably develop as an important component of the national financial supervision framework, maintain depositors’ profound confidence and create motivation for insured institutions to develop sustainably.” 

In 2017, being oriented  in line with the tasks and goalsof the banking sector, with renovations in corporate administration, the DIV united and strived to effectively carry out its assigned tasks with remarkable achievements.     

For study and making policy recommendations, the DIV actively made proposal to the SBV on the amendment of the legal framework which would allow the DIV to take a bigger part in the restructuring and bad debts resolution of credit institutions; making comments on the draft amendment of the Law on Credit Institutions and the Resolution of the National Assembly on the pilot settlement of bad debts. Being aware of the importance of the DI coverage limit raising, especially in the context that the Government and the banking sector were intensively restructuring the credit institutions system, the DIV actively conducted researches and made proposal on raising DI coverage limit to the SBV for a submission to the Prime Minister for approval.

The DIV actively accomplished the administrative documents and operational guiding documentsas planned, especially the guiding documentsfor the implementation of newly promulgated circulars on the operation of the DIV. In 2017, the DIV issued 15 documents, 11 of which were by the Board of Directors, 04 by the General Director. In general, the system of administrative documents basically caught up with the legal basis in the implementation of professional activities as stipulated by the Law on Deposit Insurance.  

Effectively realizing the Law on Deposit Insurance, by 31 December 2017, 1,275 institutions had been granted with Deposit Insurance Certificates including 93 banks and foreign bank branches, 01 cooperative bank and 1,177 people’s credit funds, 04 micro finance institutions. The DIV well conducted the granting, exchanging and revoking of Deposit Insurance Certificates. This met the demand of credit institutions and contributed to enhancing the DIV’s prestige and public confidence in the banking system.

The DIV also successfully executed the DI premium collection through encouraging, guiding credit institutions and dealing with violations in the premium assessment and payment in a timely manner. The insured institutions generally obeyed the regulations on the premium assessment and payment. In 2017, the DIV collected 5,866.7 billion dongs from the insured institutions, an increaseof970 billion dongs (equivalent to 19.8%) as compared to 2016.

The fund management and investment werecarried out in a legal, safe and effective way which helped to develop the capital resource which was aimed to supplement the OperationalReserve Fund and enhance financial capacity of the DIV. As of 31 December 2017, the total invested temporarily idle capital reached 38,372.4 billion dongs (up by 22.4% compared to 2016) mainly in government bonds. The DIV at the same time was considering other investment tools such as purchasing long term bonds issued by credit institutions which would take part in the assistance of problem institutions as stipulated by the amended Law on Credit Institutions recently passed by the National Assembly.   

In 2017, the DIV made supervision over 100% of insured institutions, effectively exchanged informationwith the SBV in offsite supervision operation as regulated in theSBV’s Circular No. 34/2016/TT-NHNN dated 28 December 2016.  

The onsite examination has always been paid due attention by the DIV. As of 31 December 2017, the DIV had finished the examination of 434 insured institutions including 47 commercial banks, 386 people’s credit funds and 01 micro finance institution.

The Steering Board, Steering Group of the supervision, examination and resolution of troubledpeople’s credit funds did their jobs in a unified, timely and effective manner as planned throughout the whole system. They conducted the intensive monitoring, supervision and examination of weak people’s credit funds, dealt with arising problems, made reports on problem people’s credit funds on a regular basis, directly joined or cooperated with the SBV provincial branches in the building of plans for weak people’s credit funds resolution.   

For raising public awareness ofthe DI policy and ofthe operation of the DIV, the communication activities continued to be strengthened and realized in various forms. The DIV held many PR events to disseminate DI policy to the public: holding talk shows, contests of DI policy for college lecturers and students, organizing PR eventsin cooperation with local SBV branches and local authorities in many provinces over the country. Besides regular communication activities, the DIV built and realized a plan on disseminatinginformation aboutthe new DI coverage limit as stated in the the Prime Minister’s Decision No. 21/2017/QD-TTg dated 15 June 2017.

The human resource training and development also drew much attention of the DIV leaders; the applied research was carried out effectively and actively. The international cooperation was enhanced for sharing experience and improving the DI system in Vietnam.  In 2017, the DIV was focused on the preparation for the hosting of the Annual General Meeting of the Asia Pacific Regional Committee (APRC) 2018.

For the Financial Sector Modernization and Information Management System Project (FSMIMS Project) – the DIV’s component, the DIV in collaboration with the contractors assisted users in the operation of the new information and communication technology system, prepared the handover documents and contract liquidation for the bidding packages. Other operations such as administration, management, internal control and internal audit were all strengthened. The finance and asset management,  records, archives and logistical workwere implemented effectively for supporting the whole system’s operation.

8 main groups of task for 2018

Speaking at the meeting, Mr Nguyen Kim Anh – Deputy Governor of the SBV recognized and praised the DIV leaders and staff for being united to try to fulfill all planned targets. As anagency with accountability to the Government for state management of DI policy, in 2017, the SBV pay attention to promulgating and submitting for approval legal documents relating to  DI. Some important contents governing DI have been approved to be added to the current legal framework in accordance with the practical banking situation in Vietnam to ensure effective operation of the deposit insurer. Specifically,  DI coverage limit was raised to 75 million dongs from 5 August 2017; the amended Law on Credit Institutions was passed by the National Assembly empowering the DIV with additional functions such as special lending, purchasing long term bonds issued by healthy credit institutions which take part in the resolution of weak institutions, taking part in the special control of credit institutions… Those additional functions would improve the DIV’s role and responsibility in the restructuring of credit institutions in Vietnam.

Mr Nguyen Kim Anhalso stated that in 2017, the DIV accomplished assigned tasks contributing to enhancing public confidence, especially: the system of administrative documents and operational guiding documents have been gradually built according to the Law on Deposit Insurance and law guiding documents, particularly the promulgation of the regulation on the reporting of information about deposits collected from insured institutions , the accomplishment of the FSMIMS project – the DIV’s component; the supervision, examination, analysis and processing of data on the insured institutions have been steps by steps improved; in-depth supervision reports on insured institutions which would be submitted to the SBV were made; active and regular supervision, examination and updating the situation of problem insured people’s credit funds were conducted; especially the DIV has successfully united as a team for the corporate development.

Mr Nguyen Kim Anh also confirmed that in 2018, the SBV will continue paying attention to the DI system through accomplishing legal framework, promulgating guiding documentsas regulated inthe amended Law on Credit Institutions for creating a basis for a new development stage of the DIV. For the task of protecting depositors and contributing to maintaining the stability of credit institutions system and ensuring the safety of the banking industry,  the Deputy Governor highlighted 08 main groups of tasks for the DIV to implement in the year 2018 as follows:

First, realizing the DIV’s financial supervision plan for 2018 which have been approved by the SBV governor at the Decision No. 36 dated 9 January 2018 focusing on the potential impacts on the financial resource of the DIV relating to the efficiency, preservation and development of the state funds and assets.

Second, actively proposing to state agencies on the accomplishment of the relevant legal documents focusing on the draft circular guiding the special lending to specially controlled institutions, the purchase of bonds issued by supporting institutions, the participation in the appraisal of Recovery Plans for problem institutions and other relevant guiding documents for the DIV to implement the amended Law on Credit Institutions.

Third, urgently reviewing, building, amending  and updating the DIV’s internal regulations, especially those relating to the procedures and conditions of purchasing bonds, the participation in the special control of credit institutions as stipulated by the new law. There should be available regulations on the role and cooperation scheme of relevant operationaland administrative departments in the new law implementation.

Fourth, continuing to finalize the Development Strategy of the DIV to 2025 with a vision to 2030 in order for the SBV to submit to the Prime Ministerfor approval. The Strategy should be open for complying withinternational standards and suiting practical situation of Vietnam, meeting higher demands of participation in dealing with problem institutions in accordance with future requirements of the banking system; actively reviewing the implementation of the Law on Deposit Insurance and joining the amendment of the Law on Deposit Insurance when required by the SBV.     

Fifth, continuously well implementing operations as regulated such as granting and revoking DI certificates, assessing and collecting DI premiums, managing and preserving funds; supervising and examining insured institutions, taking part in the special control of weak institutions, reimbursing depositors… Intensively monitoring people’s credit funds and micro finance institutions for timely intervention thus ensuring financial safety of the people’s credit funds system and social security.

Sixth, promoting the dissemination of DI policy in order to enhance public confidence, at the same time, providing information on the implementation of monetary policy and banking activities in an appropriate and prudent manner with an aim to creating a social consensus on the performance of the banking sector.

Seventh, focusing all resources onholding successfully the 16th Annual Meeting and International Conference of Asia-Pacific Regional Committee (International Association of Deposit Insurance) in April 2018 in Viet Nam.

Eighth, the DIV’s BoD should give close directions tothe final settlement of the FSMIMS Project and the implementation of the investment projects of group B as approved by the SBV onthe principle ofensuring the progress as required while preserving state budget. 

Receiving the direction of the Deputy Governor, the BoD Chairman Nguyen Quang Huy affirmed that the whole DIV would strive to fulfill the tasks assigned by the Party, the Government and the SBV by specific actions. Mr Huy also asked the DIV’s leaders and staff to unify and try their best to makefull use of available and favorable conditions and support from relevant agencies, especially the SBV to build the DIV as a great organization.   

At the meeting, the SBV Deputy Governor Nguyen Kim Anh honoured the second-class Labor Order to Mr. Ngo Quang Luong - Member of the DIV’s BoD, the certificates of Merit from the Prime Minister to Mr. Vu Trung Truc - former member of the DIV’sBoD, Mr. Tran Van Lam – Director ofthe DIV’sNorthern Central branch and Ms. Nguyen Thi Kim Oanh - Director of the DIV’s Hanoi branch. At the same time, five individuals have been recognized as emulation fighters in the banking industry; three collectives and 34 individuals received certificates of Merit from the Governor of the SBV.