Trang Chủ
From the DIV’s establishment in 1999 to 2005, the function of granting the Certificate of DI participation was conducted based on Decree No.89/1999/ND-CP and Circular 03/2000/TT-NHNN; in 2006 the DIV issued Decision 185/2006/QD-BHTGVN with reference to the Guidance on granting and revoking Certificate of DI participation for insured institutions on the basis of Decree No.109/2006/ND-CP amending and supplementing Decree No.89/1999/ND-CP and Circular 03/2000/TT-NHNN. The DIV accordingly provides guidance on dossier submission for the eligible institution; delegates its regional branches to verify the dossier document; provides guidance on displaying the certificate of DI participation as regulated and managing the certificate of DI participation.
Over the past 13 years, even though the types and operation network of the insured institutions have experienced considerable changes, the DIV has kept its objective as to protect depositors by providing guidance, receiving, verifying dossiers as well as making decisions on granting and revoking thousands of certificates of insured institutions in a timely and prompt manner. Let alone 2012, the DIV newly issued, changed, supplemented and reissued 3.146 certificates of DI participation (4 times higher than in 2011) for insured institutions and revoked 514 certificates (6 times higher than in 2011) because of the institutions changing the name, merging, consolidating and closing. The DIV examines on a regular basis the public display of certificates of DI participation to help depositors access accurate and transparent information about their rights when depositing at insured institutions.
On 18/6/2012, the Law on DI was passed by the National Assembly and officially effective from 1/1/2013. It is considered the highest legislative basis to facilitate the implementation of DI policy, strengthening current achievements, reinforcing the DI insurer’s position and roles in the financial supervisory system.
Article 14, the Law on DI simplifies the administrative procedure in granting Certificate of DI participation. The number of required documents in the dossier is made fewer; the deadline for granting is shortened to 5 working days since receiving dossiers (Clause 2 Article 14). However, the Law on DI merely regulates granting certificates of DI participation for newly established institutions and lacks provisions for merger, acquisition, splitting, etc.,
Article 15, the Law on DI requires the insured institutions to publicly display copies of certificate of deposit insurance participation at all business offices accepting deposits. Copies of certificate of DI participation is provided by the State bank of Vietnam in Official Dispatch No.2817/NHNN-PC dated 24/4/2013: “Form of copies is made in accordance with regulation in Decree 79/2007/ND-CP dated 18/5/2007 by the Government on the issue of copies from master register, authentication of copies from originals and authentication of signatures (amended and supplemented in Decree No.04/2012/ND-CP dated 20/1/2012). Accordingly, the insured institution is entitled to display copies of master register or authenticated copies as regulated in Decree No.79/2007/ND-CP.
Article 16, the Law on DI provides that certificates of deposit insurance participation shall be temporarily revoked in case the State Bank issues legal documents temporarily suspending the receipt of deposits or on revoking the establishment and operation license of insured credit institutions, establishment license of insured branches of foreign banks. However, dossiers, steps, procedures and responsibilities of the concerned parties related to the revocation of certificate are yet legally stipulated.
Article 17, the Law on DI states that insured institutions shall be re-granted certificates of deposit insurance participation when the State Bank permits the resumption of accepting deposits or when certificates of deposit insurance participation have been lost, torn, damaged, however, it does not cover the situation when there is a change of insured institutions’ name or of DI policy in the certificate, etc.,
Consequently, the DI Law takes over adequate regulations which have been implemented in reality; however, some regulations are so basic and fundamental that they lack details and specifications as mentioned above. In order to improve its implementation effectiveness, the bylaws should provide detailed and sufficient information for new issue, renewal, reissue and revocation of certificates of the deposit insurance participation. It will make the certificate an official channel to provide information on DI policy to depositors and the DIV could take initiatives to conduct and improve the protection of the rights of depositors, accordingly contribute to enhancing public confidence in the national banking financial system.
Translated by the Department of Research and International Affairs
