Highlights of deposit insurance activities in 2024

The DIV was honored to welcome Ms. Nguyen Thi Hong - Governor of the SBV, to attend and deliver her speech at the meeting to celebrate the DIV’s 25th anniversary.

Ms. Nguyen Thi Hong - Member of the Party’s Central Committee, Secretary of the Party’s Designated Representation, Governor of the SBV, other leaders of the SBV, leaders of the Party Committee of the State-owned enterprises, leaders of ministries and government agencies, and leaders of the DIV attending the meeting.

On November 8, 2024, attending and speaking at the meeting to celebrate the 25th anniversary of the DIV (November 9, 1999 - November 9, 2024), Ms. Nguyen Thi Hong - Member of the Party’s Central Committee, Secretary of the Party’s Designated Representation, Governor of the SBV praised and recognized the achievements of the DIV over the past 25 years. Accordingly, the DIV has accumulated resources with the Operational Provision Fund reaching over VND 115,000 billion. The DIV has implemented the core operations in accordance with regulations.

Governor of the SBV Nguyen Thi Hong assessed that the supervision reports of the DIV were of good quality; the examination of the people's credit funds has proven their effectiveness as an objective information channel, helping the SBV in supervising and resolving troubled people's credit funds.

"With the mission of protecting the legitimate rights and interests of depositors, contributing to maintaining the stability of the credit institution system, the DIV has gradually affirmed its role, improved its organizational structure and operating mechanism, and enhanced its financial and professional capacity." - the Governor emphasized.

Entering a new development stage, on behalf of the Party's Designated Representation of the SBV, the Governor urged DIV’s leaders and employees to strive to achieve the goals and roadmap set out in the Development Strategic Plan for Deposit Insurance through 2025, with a vision towards 2030; conduct researches to advise on the development of the amended Law on Deposit Insurance to create a solid legal basis for the DIV to participate in the restructuring of credit institutions, gradually turning the DIV into a modern financial institution, approaching international practices, suitable to Vietnam's conditions. At the same time, the DIV must strengthen its financial and operational capacity; focus on training, fostering, and developing a competent and ethical human resources to contribute to the development of the DIV as well as the banking industry.

DIV’s highlights from the past 25 years

The year 2024 marked a quarter of a century of deposit insurance implementation in Vietnam since November 9, 1999, when the Prime Minister promulgated Decision No. 218/1999/QD-TTg, establishing the sole deposit insurer in Vietnam.

Chairman of the Board of Directors of the DIV Pham Bao Lam spoke at the meeting to celebrate the 25th anniversary of the DIV on November 8, 2024 that over the past years, the DIV had determined to develop policies and mechanisms to effectively fulfill its role of protecting the interests of depositors, contributing to maintaining the stability of the credit institution system, and ensuring the safe and sound development of banking system.

Over 25 years of development, the DIV has expanded its network and built a team of capable and committed staff, thereby increasingly performing well the political tasks assigned by the Party and the State.

From the seed capital of VND 1,000 billion, the total accumulated capital of the DIV has reached over VND 120 trillion, more than VND 115 trillion of which stays in the Operational Provision Fund; the rest is recorded as charter capital.

Through core operations aligned with a lifecycle of every financial institution - such as supervision, examination of compliance with deposit insurance regulations, in-depth examinations under the direction of the SBV, participation in Special Control Boards for troubled credit institutions, reimbursement, and public relations promotion - the DIV is instrumental in maintaining the stability of the banking system and enhancing depositors’ trust.

Governor of the SBV Nguyen Thi Hong and Standing Deputy Secretary of the Party Committee of the National-level State-Owned Enterprises’ Group Nguyen Duc Phong presenting Certificates of Merit and congratulating the DIV for its outstanding contributions to the examination of people's credit funds.

In the coming time, the DIV is going to focus its resources on reviewing current policies and proactively advising the SBV on a proposal to the Government that will be submitted to the National Assembly for approval of the amendments and supplements to the Law on Deposit Insurance, implementing the goals and roadmap in the Development Strategic Plan for Deposit Insurance through 2025, with a vision towards 2030 approved by the Prime Minister, and focusing on training and developing qualified human resources in conjunction with promoting the digital transformation process and applying information technology to core operations.

Announcing Decision to appoint General Director of DIV

On September 18, 2024, the DIV held a ceremony to announce the Decision to appoint Mr. Dang Duy Cuong as Deputy Secretary of the Party Committee, and General Director, member of the Board of Directors of the DIV. He previously held the position of Deputy Director General of the SBV’s Organization and Personnel Department.

Specifically, Decision No. 2148/QD-ĐUK dated September 18, 2024, of the Party Committee of the National-level State-Owned Enterprises’ Group appoints Mr. Dang Duy Cuong to join the Executive Board, the Standing Committee and hold the position of Deputy Secretary of the Party Committee of the DIV for the 2020-2025 term.

Decision No. 2158/QD-NHNN, dated September 18, 2024, of the Governor of the SBV on the assignment and appointment of Mr. Dang Duy Cuong - Deputy Director General of the SBV’s Organization and Personnel Department, to hold the position of member of the Board of Directors and General Director of the DIV.

According to Mr. Dao Minh Tu, Standing Deputy Governor of the SBV, Mr. Dang Duy Cuong had already worked at the DIV; after a period of working at the SBV for training as well as completing political conditions, he has now been reassigned back to the DIV. With his accumulated qualifications, practical experience, management skills, the new General Director has many advantages to carry out and complete the assigned tasks for contributing to the development of the banking industry, and earn the trust of the Party Executive Committee, the SBV's Board of Directors and the officers and employees of the DIV.

2024 Law on Credit Institutions enhances role of DIV in restructuring credit institutions

On January 18, 2024, the XV National Assembly passed the 2024 Law on Credit Institutions, effective from July 1, 2024.

The 2024 Law on Credit Institutions consists of 15 chapters with 210 articles on new contents that are expected to decrease group interests, thereby improving clarity and transparency in banking operations, helping credit institutions operate safely and stably, building trust of depositors in the credit institution system.

For the 2024 Law on Credit Institutions, the drafting team emphasized the role of the DIV in the restructuring of credit institutions, especially in the recovery plan and measures to support the implementation of the recovery plan for credit institutions placed under special control; in support for commercial banks subject to compulsory transfer; in the case of bankruptcy of credit institutions placed under special control, etc.

The Law states that it is necessary for the DIV to participate in the early intervention stage, to take advantage of resources and to demonstrate the role and responsibility of the DIV towards depositors as well as insured institutions. In particular, the 2024 Law on Credit Institutions creates the legal foundation to amend and supplement the Law on Deposit Insurance.

DIV’s 5 – year examination of people's credit funds as directed by SBV Governor

The examination of people's credit funds, as directed by the Governor of the SBV, has been implemented by DIV since 2019. After its 5 - year performance, the number of people's credit funds examined as directed has reached 234 funds, gradually increasing over the years.

The examination contents have also been expanded over the years with many complex and new requirements. However, the DIV has so far always completed all assigned examination contents, ensuring quality and time as required by the SBV.

As of November 30, 2024, the DIV completed the examination of 74/75 people's credit funds as directed by the Governor of the SBV, fulfilling 98.7% of the plan assigned for 2024. Based on the examination results, the DIV recommended and urged people's credit funds to overcome shortcomings and deficiencies and advised the SBV to amend some mechanisms and policies for the operation of the people's credit funds system.

The SBV has highly appreciated the examination results and the DIV’s coordination and participation in supporting the SBV’s examination of people's credit funds. This is considered an effective risk control channel to support the examination and supervision of the SBV in the process of resolving troubled people's credit funds.

Approval of Deposit Insurance Communication Project to 2025, with a vision toward 2030

Based on the Development Strategic Plan for Deposit Insurance and the current level of depositors’ awareness on deposit insurance policy, the Deposit Insurance Communication Project to 2025, with a vision toward 2030, sets a general goal, which is raising public awareness on deposit insurance policy to protect depositors and contribute to the stability of the financial and banking system. At the same time, the Project also sets out specific targets for the dissemination of the deposit insurance policy, including the target on the level of awareness (41% of total depositors by 2024, 45% by 2025, and 55% by 2030 will understand the core contents of the deposit insurance policy), the target of dissemination on the amendment of the Law on Deposit Insurance, the target of dissemination on the implementation of the Development Strategic plan for Deposit Insurance through 2025, with a vision towards 2030, and the target of dissemination on the operations of the DIV.

The core contents of the deposit insurance policy focus on: the scope of insured deposits, insured institutions, deposit insurance premiums, deposit insurance coverage limit, reimbursement to depositors, and the DIV. In addition to the above contents, general issues of deposit insurance policy will also be disseminated to the public at a reasonable level depending on the time and the level of awareness of each public audience.

DIV successfully organized 2024 Contest on deposit insurance

The 2024 Contest on Deposit Insurance was one of the activities to celebrate the 25th anniversary of the DIV, aiming to disseminate the deposit insurance policy and promote the image and activities of DIV to the public, thereby improving the understanding of the depositors and the public about the deposit insurance policy.

The contest created a strong media effect and widespread dissemination in the community. The contest information portal attracted an impressive number of visits, with 1,122,065 users and a total of 6,315,115 million visits and interactions during the contest (from October 7, 2024, to November 2, 2024)

Leaders of DIV posing for photos with individuals and representatives of insured institutions woning high prizes at the contest.

The contest attracted 412,391 participants with 478,244 entries. There were nearly 240 organizations with a large number of participants. This shows that people, officers and employees at insured institutions are very interested in learning about deposit insurance policies. The contest has contributed to raising public awareness of the deposit insurance policy and the operation of the DIV, in line with the goals set out in the Development Strategic plan for Deposit Insurance through 2025, with a vision towards 2030.

Announcing the implementation of the Special Control Software

DIV announcing the implementation of Special Control Software on December 16, 2024.

In 2024, the DIV actively promoted the application of information technology in its operations to meet the requirements of innovation, improvement, and enhancement of the quality of deposit insurance operations.

According to the Chairman of the Board of Directors of the DIV, Mr. Pham Bao Lam, the application of modern science, technology, and innovation, along with the development of high-quality resources, are key elements for the sustainable development of deposit insurers. Therefore, the implementation of the Special Control Software (Golive) is an inevitable requirement in the process of innovation, improvement, and enhancement of the quality of operations at the DIV.

Also according to the DIV’s Chairman, Golive Software is expected to be an effective tool to support the implementation of the DIV's tasks in general and the special control operation in particular, contributing to improve efficiency, shorten the time to perform special control operations, save costs to and resources of the DIV; thereby contributing to enhancing the DIV’s roles in the process of restructuring weak credit institutions associated with handling non-performing loans to protect the interests of depositors and ensure the safe and sound operations of the national banking system.

DIV achieved high results in competitions to celebrate 30th anniversary of Vietnam Banks Association

On the occasion of the 30th anniversary of the Vietnam Banks Association (May 14, 1994 - May 14, 2024), many activities were organized to promote the image of all member organizations on mass media and social networks, contributing to the public’s understanding of the activities of member organizations. Notably, there were four competitions: a competition to learn about the Code of Professional Ethics and Code of Conduct for Bank Officers, a TikTok creativity contest - Banker Pride, a video contest - Banker Talent, and a photo contest - Banker Beauty. Statistics show that the TikTok Creativity Contest - Banker Pride received 1,073 entries from 45 member organizations and units. The Video Contest - Banker Talent received 524 entries from 40 member organizations and units. The Photo Contest – Banker Beauty received 3,628 entries with a total of 3,880 photos.

As an active member of the Vietnam Banks Association, the DIV enthusiastically participated and immediately joined the Association’s activities, especially participating in 4 contests.

As a result, the DIV’s Headquarters won the First Prize in the Video Contest – Banker Talent with the ensemble piece “Central Highland Vitality” and won the Second Prize in the VNBA Impression category of the TikTok Creative Contest – Banker Pride with the work: “Our DIV Pride.”

Department of Research and International Cooperation (translation)