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Amending the Law on Deposit Insurance is one of the top priorities
In recent years, the amendment and supplementation of the Law on Deposit Insurance has been mentioned many times at the highest levels of leadership. The National Assembly directs to continue reviewing, amending and perfecting the legal framework, organizing the effective implementation of monetary policy, foreign exchange, gold trading and banking activities, including the Law on Deposit Insurance under Resolution No.62/2022/QH15 on questioned activities at the 3rd session of the 15th National Assembly. Previously, the Project on restructuring the system of credit institutions associated with non-performing loan settlement in the 2021-2025 period approved by the Prime Minister also mentioned the content of research, review, amending and supplementing the Law on Deposit Insurance and a number of other laws. It can be said that this is one of the key tasks of DIV in 2022 as well as the following years.
Mr. Vu Van Long - Deputy General Director of DIV said that 2022 is a pivotal year for the operation of this agency in particular and for deposit insurance policy in general. Last year, DIV completed the draft development strategy of deposit insurance for the SBV to submit to the Prime Minister. As soon as the Strategy is reviewed and approved by the Prime Minister, DIV will be ready for implementation steps. At the same time, in order to amend and supplement the Law on Deposit Insurance, DIV has actively reviewed the implementation of the Law, closely coordinated with functional departments of the SBV in order to unify the proposed amendments and supplements.
Also in 2022, the Prime Minister issued Decision No.1479/QD-TTg 2022 on the plan to rearrange State-owned enterprises for the period of 2022-2025. formation, the State will continue to hold 100% of the charter capital of DIV in the next period. This shows the importance of deposit insurance policy - a specific policy to serve public purposes, thereby demonstrating the Government's consistent stance in protecting depositors, contributing to stabilizing the system of credit institutions, enhancing public confidence, minimizing sudden withdrawals of deposits, creating an official mechanism to handle trouble depository institutions and participate in the process of handling financial crises. Currently, DIV is a State financial institution, operating for non-profit purpose, following the model of a one-member limited liability company in which 100% of charter capital is held by the State.
Synchronous and effective in implementing deposit insurance policy
Mr. Vu Van Long - Deputy General Director of DIV said that the agency is currently protecting deposits at 1,283 public institutions, including 97 banks and foreign bank branches, 1,181 people's credit funds, 1 cooperative bank and 4 microfinance institutions. These organizations are all granted certificates of participation in deposit insurance, and are charged and collected fees in accordance with the provisions of law.
Besides, the professional activities of DIV such as investment in temporary idle capital, examination, supervision, participation in special control, etc. have all been implemented synchronously.
According to estimated statistics of DIV, by the end of 2022, the total capital of this agency has reached nearly VND 96 trillion, up 16% over the same period last year. In which, the professional reserve fund reached nearly VND 90 trillion, increasing more than 17% compared to the same period in 2021. This is a financial resource for DIV to always be ready to perform the task of protecting depositors as well as actively participating in the process of restructuring credit institutions and ensuring the safety of the banking system. The above-mentioned outstanding growth is due to methodical investment activities, ensuring profitability as well as preserving temporarily idle capital. In 2022, DIV exceeded the revenue plan assigned by the SBV.
In 2022, DIV completed on-site examination for 276 public institutions, reaching 100% of the periodic examination plan. In addition, DIV carried out on-site examination for 53 people's credit funds under the direction of the Governor of the SBV. Not only that, all reputable institutions are remotely monitored in order to detect risks and violations early, through which DIV reports to the SBV for consideration and correction.
During the time of tightening measures to control the COVID-19 epidemic, DIV has implemented policy communication flexibly to adapt to the actual situation. Immediately after the epidemic control measures were eased, communication activities were promoted with dozens of events towards held depositors, especially depositors in rural, remote and isolated areas. These activities have reached about 1,500,000 depositors in many localities across the country. DIV has also focused on indirect communication measures through the mass media, communication at transaction locations about deposits of credit institutions, etc. to raise awareness about the deposit insurance policy. In the international arena, DIV has gradually asserted itself as a dynamic deposit insurance organization, actively participating in the activities of the International Association of Deposit Insurance (IADI) as well as bilateral and multilateral activities aimed at sharing knowledge and experiences, and approaching international practices . This organization has also sent personnel to participate in a number of specialized committees and sub-committees of IADI in recent years. Thereby, DIV has determined to continuously improve to meet the highest standards of effective deposit insurance organization recommended by IADI.
From an internal perspective, Mr. Vu Van Long shared, DIV is developing and implementing a digital transformation plan to 2025, with orientation to 2030. This will be a stepping stone for DIV to modernize all professional activities as well as internal operations on the basis of new technology, keeping up with the scientific and technological revolution 4.0 with a long-term, transparent and effective vision.
According to DIV, in 2023, this organization will focus on promoting the implementation of the development strategy after being approved by the Prime Minister, closely linked with the direction that has been established in the Banking industry development strategy. DIV will also play an active and proactive role in amending amendments and supplements to the Law on Deposit Insurance in line with the orientation of the Government and the SBV. Professional activities will be constantly improved and modernized in order to comply with the provisions of the law, meet practical needs, ensure compliance with international practices as well as reality in Vietnam.
