Trang Chủ
- Vietnamnet’s reporter: Dear Sir, would you please give us an overview of the demand to protect depositors in the current situation?
- Mr. Tran The Vuong: Protecting the legitimate interests of depositors also means protecting the interests of the society and the State. We need to mobilize funds, especially funds from the people’s sources in order to develop the economy. If we can build and promote public confidence in the banking system, people will have their money deposited at banks instead of saving them at home. Therefore, it is highly important to create, maintain and enhance public confidence in the banking system.
It is widely known that we have undergone the world financial crisis and are still recovering from it. However, the economic growth is still fragile and unstable, forcing countries to take measures to strengthen the supervision of the financial system, manage risks and heighten financial consumer protection including depositors.
Furthermore, in order to meet the requirements of the economic integration process, our banking system is developing remarkably. Parallel to this, depositors will certainly face risks, both inside and outside and they need to be legally protected by the State.
Meanwhile, the legal system on depositor protection has clearly revealed shortcomings such as there has been no issuance of the Law on Deposit Insurance. Currently, the highest legal framework regulating deposit insurance activities is the Government’s Decrees only. Therefore, the issuance of the Law on Deposit Insurance plays a crucial role in protecting depositors.
- Vietnamnet’s reporter: As a representative of the Vietnamese people, what measures do you see as important in protecting depositors?
Mr. Tran The Vuong: The National Assembly is strongly advised to officially issue the Law on Deposit Insurance stipulating policies, measures and solutions necessary to protect depositors. The Law on Deposit Insurance shall give Deposit Insurance of Vietnam rights and powers to successfully fulfill its assigned functions and tasks, properly handle the relationships among State bodies in charge of managing deposit insurance activities including: The State Bank of Vietnam, The Ministry of Finance, the Ministry of Home Affairs, The Ministry of Labour – Invalids and Social Affairs; the relationships among members of the financial safety net and those between the Deposit Insurance of Vietnam and insured institutions.
Also in my opinion, when the Law on Deposit Insurance is issued, how to implement this law is very crucial. The government, governmental agencies as well as authorities at all levels have to effectively implement the law in order to make people abide by it. The National Assembly and elective bodies have to monitor and supervise measures taken to implement the law.
- Vietnamnet’s reporter: Would you please give us more information about the role of the Deposit Insurance of Vietnam in protecting the legitimate rights of depositors?
Mr. Tran The Vuong: The deposit insurance organization plays a pivotal role in enhancing public confidence in the banking system, thus making significant contribution to maintaining social security. In the late 1990s, there were several failed People’s Credit Funds. This caused people who lost their money to march on local authorities or the offices of failed People’s Credit Funds to request for their money, adversely affecting social and security situation. Due to this event, public confidence in the banking system diminished.
In 2000, the Deposit Insurance of Vietnam came into operation. Since then, DIV has made initial progress in protecting legitimate rights and interests of depositors, making great contributions to regaining, strengthening and promoting public confidence.
DIV’s activities also help stabilize the safety of the banking system. According to international norms and practices, the Deposit Insurance Agency is a member of the national financial safety net, including: the Central Bank, the Ministry of Finance, the Financial Supervisory Commission and Deposit Insurance Agency. In recent years, DIV, along with other financial supervisory agencies, have closely supervised and monitored banks’ activities, contributing to keep banking activities safe and healthy.
- Vietnamnet’s reporter: In order to have the Law on Deposit Insurance issued timely, what needs to be done?
Mr. Tran The Vuong: The timely issuance of the Law on Deposit Insurance is critical. However, it has been delayed many times. This law should have been issued immediately after the event in the late 1990s. However, due to different reasons, we failed to do follow the plan.
Currently, the Law on Deposit Insurance has been added to the law – building program of 2011 and need to be issued in accordance with the route set by the National Assembly’s Standing Committee. Building laws in general and the Law on Deposit Insurance in particular is a painstaking and time – consuming process. Therefore, we need to set up the law-drafting committee as soon as possible.
The government should steer relevant agencies to establish the law – drafting board. This board is tasked with researching and summarizing current legal documents related to deposit insurance. Based on the legislative activities, it is widely agreed that the law – drafting board plays a key role in the quality of the Law.
However, in the field of deposit insurance, there are so many relevant Ministries, agencies and sectors in charge of managing the field. This poses a problem that which agency should presides over the law – drafting program in order to make sure that the Law on Deposit Insurance is objective and does not give preference to any agency. I strongly believe that the government will take this issue into thorough consideration. The Minister of Justice, as a high – ranking official responsible for creating laws, is expected to make specific and strong recommendations to the Government in order to promulgate a Law on Deposit Insurance of high quality.
- Vietnamnet’s reporter: Thank you very much for your valuable opinions.
