Trang Chủ
DIV’s achievements have been reflected in the following outstanding figures:
In the first half of 2009, DIV has issued 297 new Deposit Insurance Certificates and leaflets to insured institutions (including new, renewal and supplementary). DI Certificates affirming DI participation by financial institutions shall be displayed publicly at their operation offices. DI has also withdrawn 16 DI Certificates from insured institutions. DIV’s issuance, withdrawal of DI certificates and leaflet has been implemented promptly and synchronously based on modern IT infrastructure in the whole DI system. DIV has also examined and provided instructions to insured institutions to well implement the regulations on issuance, renewal and display of the DI certificates and leaflet, thus contributing to enhance public awareness of depositors’ rights and to publicize DI policies according to international practices.
DIV’s offsite supervision has also been conducted synchronously in the whole system. By the first half of 2009, DIV has conducted quarterly supervision to all insured institutions including 83 commercial banks, 10 non-bank financial institutions, and more than 1000 people’s credit funds. In the first half, DIV has finalized the supervision report of 2008, and monthly supervision reports of November, December, 2009, and the quarterly reports of Q3 and Q4 of 2008 and Q1 of 2009. Supervision reports have been improved with new methods of risk analysis and use of additional information about insured institutions. DIV also continues to improve and finalize offsite supervision procedures; to research and finalize the projects on risk-based premium system and on offsite supervision; to research risks in banking and credit risks; to develop a customer-friendly and security IT system. Based on the results of supervision and risk analysis, DIV has made early warnings to problem insured institutions with higher rate of NPLs and/ or violating regulations on prudential banking for prompt corrective measures.
In the first half of 2009, DIV has conducted onsite examination to 150 first grade branches of Bank for Agriculture and Rural Development of Vietnam, 7 foreign bank branches and 92 people’s credit funds on the observance of prudential and deposit insurance regulations. Findings from onsite examination have shown that 80 people’s credit funds were found violating regulations on deposit insurance, premium payment and prudential banking. Examination has been detailized to early discover, prevent and timely resolve the violation of regulations on deposit insurance and prudential banking by insured institutions. Based on examination result, DIV has made the evaluation of the performance, inherent and potential risks, and requested for prompt corrective measures or solutions by the insured institutions.
In the first six months of 2009, DIV has collected premium from 1107 insured institutions with total amount of VND 431.42 billion, an increase by 36.6% comparing to the same period of 2008. The collected premium has been added to deposit insurance fund. Insured institutions have generally observed of regulations on premium calculation and payment. DIV has made in written early warnings of insured institutions violating deposit insurance and prudential regulations.
Besides, after verifying claims, DIV has orderly and precisely made reimbursements to insured depositors at Vinh Long people’s credit funds, Kien Giang province with total payment of some VND300 million. DIV continues to follow up and involve in the liquidation of 35 failed people’s credit funds, recovering more than VND 500 million.
Moreover, DIV has successfully completed other operational activities including investment of deposit insurance fund, financial assistance, legal relations, internal control and audit, research and international affairs, financial management, organization and HRD, IT application, public relations and administration.
All these achievements of DIV in the first six months of 2009 have strongly contributed to the stability of insured institutions, enhancing public confidence in the national financial and banking system.
In the last 6 months of 2009, based on the directions and management of the Government, the action plan of the banking and financial sector, the socio-economic development and DIV’s assigned tasks and its achievements in the first 6 month of 2009, DIV has identified its tasks to proactively fulfill its missions and mandates for the best protection of depositors and the stability of the financial and banking system, focusing on:
- To improve and intensify its supervision for early warnings and prompt resolution measures against insured institutions risking temporary illiquidity. DIV continues to improve and finalize supervision procedures in the whole deposit insurance system, to apply pilot model of early warnings system against commercial banks, and to study risks in banking operation, etc.
- Continuing to study and finalize regulations and handbook on prudential examination; to conduct onsite examination toward Bank for Investment and Development of Vietnam, Bank for Foreign Trade of Vietnam, Rubber financial company, the Central People’s Credit Fund, local people’s credit funds and non-bank financial institutions.
- Continuing to finalize regulations on depositor reimbursement; to reimburse to insured depositors at failed institutions, to collect premium and involve in the liquidation of failed insured institutions; to finalize several projects on business development; to implement DIV’s component of the Financial Sector Modernization and Information System (FSMIMS); to develop research and international affairs; to reorganize DIV head office, and; to enhance public awareness of deposit insurance.
- However, in the implementation of its tasks, DIV has faced with several serious challenges such as: i) the lack of a proper and synchronous legal framework of deposit insurance in accordance with DIV’s tasks and international best practices, which has constrained DIV’s power to supervise, examine insured institutions and to handle with claims and provide financial assistance; ii) inadequate financial capability, which has constrained DIV to best protect depositors, and to expand its network and business in accordance with international best practices; iv) limited information input for DIV reported by insured institutions and; v) ineffective operation of the liquidation council of failed insured institution due to the fact that outstanding debts are NPLs or undue debts.
Despite outstanding achievements and before many challenges, DIV should endeavor to best fulfill its missions and mandates in the last 6 months of 2009 to best protect depositors and to contribute to the stability of the national financial and banking system. This is also the conclusion at the Conference by Mr. Bui Khac Son, General Director of DIV.
