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The Law on deposit insurance stipulates that the deposit insurance organization must "synthesize, analyze and process information about insured institutions to detect and recommend to the State Bank of Vietnam (SBV) to promptly resolve violations of safety regulations in banking activities, risks causing insecurity in the banking system"; be “allowed to access information data of the SBV about public institutions to perform functions and tasks according to the provisions of the Law. The SBV is responsible for allowing insured institutions to access information data about insured institutions according to Government regulations"; “require insured institutions to provide information on insured deposits".
By the end of March 2024, there were 1,279 public institutions, including 96 commercial banks and foreign bank branches, 4 microfinance institutions, 1,178 people's credit funds, 1 cooperative bank. Information reported on the activities of public institutions from data of the SBV is received by DIV according to the provisions of Circular No.34/2016/TT-NHNN regulating the provision of information between the SBV and DIV, including written information and electronic information.
Recognize the importance of deposit insurance policy in contribution to protect the legitimate rights and interests of depositors, in order to enhance public trust and ensure the safe operation of financial and monetary markets, DIV closely follow the provisions of law on deposit insurance and regulations on safety in banking operations to perform operations. Through periodic and in-depth reports, DIV has detected sudden situations that have arisen, units violating regulations on deposit insurance and safety in banking operations, especially sudden information that causes uncertainty in operations such as mass withdrawal that may cause the risk of insolvency.. . then brings recommendations and potential risks warning that cause uncertainty in operations or lead to violations of the law on currency and banking. This result is an important information channel that contributes to ensuring the safe and healthy development of the credit institutions system; protect the legitimate rights and interests of depositors; maintain and enhance public trust in the system of credit institutions.
From 2017 to present, reporting information on insured institutions has been carried out in accordance with the Regulation on reporting information on insured deposits. Insured institutions are responsible for providing and sending detailed information about insured deposits directly to DIV according to regulations. According to data collected by the DIV, as of December 31, 2023, the DIV announced 115 million depositors, the amount of announced deposits is about 8,348 million billion VND. This is considered an information channel to prevent and limit risks arising in deposit mobilization activities public institutions. At the same time, this information is the basis for DIV to research policy proposals as well as build and rehearse payment simulation scenarios with the goal of quick and timely reimbursement if any, thereby contributing practically to improving the effectiveness of protecting the legitimate rights and interests of depositors. For weak public institutions, this is the basis for DIV to estimate the amount of the reimbursement. Insured deposit data is the basis for DIV to prepare financial resources, ready to perform well the task of protecting depositors' rights and implement deposit insurance policy.
Beside the information on insured deposit balances periodically provided to DIV, insured institutions are responsible for maintaining information to ensure readiness for DIV to conduct examination. Compliance with legal regulations on periodic and extraordinary deposit insurance according to the provisions of the Law on deposit insurance.
DIV also regularly coordinates, provides and exchanges information with SBV branches in provinces and cities to help facilitate examination, supervision and deposit insurance policy communication; thereby contributing to ensuring the safety of public institutions, especially the people's credit fund system across the country. Up to now, DIV has signed regulations on coordination, provision and exchange of information with 100% of SBV branches in provinces and cities that manage active people's credit funds.
The law on credit institutions 2024 has been approved by the National Assembly on January 18, 2024, Directive No.06/CT-TTg dated March 12, 2019 of the Prime Minister on strengthening solutions to ensure operational safety, solidly consolidating the people's credit fund system shows that the role of DIV is increasingly enhanced.
One of the top tasks and priorities to serve the professional activities of the DIV is to complete and improve the quality of report information, such as supervision, examination, and participate in special controls to help detect and conduct early warning of potential risks at public institutions. To accomplish this, DIV regularly reviews and evaluates operations and perfects the reporting information system to ensure complete and reliable information. DIV strengthens coordination with SBV branches in provinces and cities to provide and exchange information more effectively. Regularly evaluate the current situation of public institutions to predict the ability to reimburse and prepare financial resources if the public institutions fall into a state of insolvency or bankruptcy. This is also set out in the Deposit insurance development strategy to 2025, with orientation to 2030 approved by the Prime Minister. At the same time, DIV coordinates closely with the SBV and relevant ministries and branches to propose and develop a draft on the amendment and supplement to the Law on deposit insurance, which stipulates additional functions and tasks for DIV; types of DIV information can access and share for effective exploitation, consistent with the reality of deposit insurance activities.
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