DIV’s working visit to Ha Giang Province

The team met heads of the SBV – Ha Giang Branch, local authority and some people’s credit funds (PCF) such as: Bao Tin PCF, Viet Lam PCF, Viet Quang PCF… in order to know the impact of deposit insurance policy on local economic development, social security and depositors. In the meantime, the team also received suggestions from depositors as well as ethnic people on deposit insurance policy.

According to Mr. Nguyen Xuan Thinh – Director of the SBV – Ha Giang Branch, Ha Giang is a poor border province and the home to ethnic minorities. 

Being aware of the important role of the Deposit Insurance policy for banking activities, the SBV – Ha Giang Branch has coordinated with local authorities and credit institutions in the area to promote public awareness in order for DI policy to have a positive impact on depositors’ confidence, create favorable conditions for the mobilization of capital, restrain “black credit” and contribute to the stable development of local credit institution system.

 As for the current DI coverage limit of 50 million dongs, most experts suggest that this level is outdated given the economic development of Ha Giang as well as people’s average income. Statistics show that at some local credit institutions, 80% of the depositors have total deposit balance greater than 50 million dongs. Thus, it is important to raise the DI coverage limit to 200-300 million dongs, so that people will feel assured to deposit money with credit institutions. This also reflects the important role of DI policy in protecting depositors.

Regarding DI premiums, credit institutions propose the prompt application of a risk-based premium system in order to create transparency, fair competition among and motivation for credit institutions to minimize risks and improve their performance.

Translated by Hai Le

Department of Public Relation