Trang Chủ
As of September 30, 2024, the DIV secures approximately 8.9 quadrillion VND for nearly 124 million deposit transactions across 1,278 published institutions, including 96 commercial banks and foreign bank branches, 1,177 people's credit funds, one cooperative bank, and four microfinance institutions , with a coverage limit of 125 million VND per depositor per institute.
As of September 30, 2024, the DIV safeguards approximately 8.9 quadrillion VND for nearly 124 million deposit transactions across 1,278 insured institutions, including 96 commercial banks and foreign bank branches, 1,177 people’s credit funds, one cooperative bank, and four microfinance institutions, with a coverage limit of 125 million VND per depositor per insured institution.
In fulfilling its role and responsibilities, the DIV regularly conducts examination to ensure that insured institutions comply with deposit insurance regulations, contributing to the safety of the credit institution system. Additionally, it participates in the restructuring of weak credit institutions and reimburses depositors in cases where credit institutions are insolvent or go bankrupt.
Furthermore, the DIV consistently preserves and develops its capital to ensure its ability to reimburse depositors in any situation. As a result, the DIV's position has been increasingly affirmed, most notably reflected in the Law on Credit Institutions 2024, which authorizes the DIV to engage in early intervention for credit institutions requiring assistance to ensure system-wide safety from the outset.
During its early years, the DIV successfully reimbursed thousands of depositors at credit institutions that went bankrupt or became insolvent. This successfully reinforces public confidence in credit institutions as well as in the Government and the State Bank of Vietnam's deposit insurance policies.
In its efforts to ensure system stability and protect depositors' rights, the DIV has also continuously enhanced its management capabilities and international integration through collaboration with international deposit insurers such as the Deposit Insurance Corporation of Japan (DICJ) and the Korea Deposit Insurance Corporation (KDIC). The DIV actively participates as a member of the International Association of Deposit Insurers (IADI) and the Asia-Pacific Regional Committee (APRC), gaining valuable risk management experience and developing safety management standards in line with international best practices.
Over the past 25 years, although there have been some limitations due to policies and incomplete or inconsistent deposit insurance regulations, the DIV has made efforts to innovate and develop in order to enhance its position and reputation both domestically and internationally. This has affirmed its reliability not only for depositors but also for insured institutions. Achieving this result is the culmination of unity and consensus from the leadership, the Board of Directors, and all staff members throughout the entire system.
In the coming time, the DIV will continue to face numerous opportunities but also significant challenges as it becomes more involved in the restructuring process of credit institutions as stipulated by the Law on Credit Institutions 2024. Therefore, the DIV needs to build on its achievements, learn from past shortcomings, and support and collaborate with insured institutions to protect the legitimate rights and interests of depositors, as well as to ensure the safe and sound development of the banking sector. To enhance its role in supporting insured institutions, the DIV should focus on the following issues:
Firstly, continue advising the Government, the State Bank of Vietnam, and relevant ministries and agencies on improving policies and mechanisms to effectively carry out the role assigned under the Law on Credit Institutions 2024, such as amending and supplementing the Law on Deposit Insurance, specifying bond purchase procedures, financial regimes.
Secondly, improve the legal framework and process for issuing, revoking, and managing deposit insurance participation certificates, strengthening the role of supervising compliance with deposit insurance regulations among credit institutions to provide early warnings, working closely with the Banking Inspection and Supervision Agency and the State Bank of Vietnam to strictly handle violations, while also effectively implementing the Deposit Insurance Development Strategy until 2025, with orientations toward 2030.
Thirdly, enhance the capacity to preserve and develop capital resources, ensuring the ability to support the restructuring of weak credit institutions and guaranteeing reimbursements to depositors in any situation.
Fourthly, improve the organizational structure toward greater efficiency, specialization, and integration in governance and management, and develop a human resource development plan that aligns with the new tasks at hand.
Fifthly, actively collaborate with domestic insured institutions and global deposit insurers to enhance professional standards, protect depositors' rights, and support credit institutions facing liquidity difficulties while encouraging non-bank institutions to join deposit insurance. This will expand the coverage for depositors and contribute to ensuring system safety not only within credit institutions but also among non-bank entities.
Dr. Nguyễn Quốc Hùng - Vice Chairman and General Secretary of the Vietnam Bankers' Association
Communication Department (translation)
