Trang Chủ
Effectiveness of DI policy implementation at the locality
According to the Ha Nam ProvincialSBV branch’s statistics, by the end of August2017,mobilized capital in the province totaled24,062 billion VNDs, while loan balance reached 24,531 billion VNDs, of which non-performing loansaccounted for 0.58%. These outcomeswere achieved thanks to not only the effortsof credit institutions themselves, but also the coordination between Ha Nam Provincial SBV branch and the Deposit Insurance of Vietnam (DIV) in effectively implementingDI policy, thuspositivelyaffecting depositors’ confidence when saving their money atthese credit institutions.
Local banking activities have remained stable, safe and effective. The Ha Nam Provincial SBV branch has directed credit institutions to implement solutions in order to overcome difficulties, to create favorable conditions for borrowers to get access to credit for production and business activities with an aim to develope family economy and contribute to the development of the local economy.
Ms Nguyen Thi Bich Nga, Director of the Bo De People's Credit Fund (PCF) in Binh Luc district, said that many people used to be afraid to deposittheir money at PCFs due tothe funds’ small size. However, with the efforts of PCFs in general and Bo De PCFin particular, together with the effective dissemination of DI policy, the capital mobilization of the fund has been flourishing with the mobilized amounts growing year by year. In particular, the annual average growth rates of lending and borrowinghave reachedapproximately 15-20%. The current loanbalancestands at 93 billion VND, most of which is for production, businessand planting.
Since its establishment, the Bo De PCF has significantly contributed to the progress of hunger eradication and poverty reduction,and helped to minimize shadow banking activities in the area. Besides, the development of capital mobilization and operation ofBo De PCF’s have been strengthened by people’s confidence.
Sharing the same view, Mr Pham Ngoc Doanh–Board of Directors Chairman of the Tien Noi PCF, in Duy Tien District stressedthat the deposit insurance certificate is considered as “certificate of trust" for people to be assured to deposit their money at the fund.Although the fund was established just one year ago, the fund’s total deposit balance reached nearly 20 billion VNDwhilethe loan balances was registered at approximately 21 billion VND. The fund effectively mobilized idle capital from local people and then lent to thosewho are in need for production and businessactivities, mainly raising animals, plantingtrees, andbuying tools for production.
"The Tien Noi PCFachieved such growth thanks to the guidance and support of relevantauthorities and agencies, including the DIV. The fund has welcomed more members, mobilizedmore capital and expanded its operational scale”- highlighted Mr Pham Ngoc Doanh .
Deposit insurance policy reflection into life
Recently, the DIV actively cooperated with local SBV branches and PCFs in order to disseminate DI policy to depositors. Taking advantage of its geographical location, DIV branches can easily access depositors in rural areas, listen to their voice and desires in order to propose and cary outeffective and appropriate communication activities.
"The fact that the Prime Minister raised the deposit insurance coverage limit from 50 to 75 million VNDreflects the commitment of the Government, SBV and DIVtobetter protect depositors' interests. However, for remote rural areaswith limited information access, I think the DIV should actively cooperate with Ha Nam provincial SBVbranch and PCFs in order to widely disseminateDI policy to helpdepositors fully understand their rights. Thus, people will be more confident in depositingmoney at the funds"- Mr Nguyen Van Hieu -Director of Ha Namprovincial SBV branchremarked.
According to Ms Nguyen Thi Bich Nga- Director of Bo DePCF, the certificate of deposit insurance should be placed in a noticeable positionat the transaction counter. In addition, when taking deposits , the fund’s staff will explainDI policy to depositors or providethemwith information leaflets so that people know and learn about DI. "The policy dissemination not only makes depositors feel assuredwhen depositing their money, avoiding negative reactions when rumors arise, but also help thefund itself become more confident in its operations. We hope every staff member of the Fund will be a communicator of DI policy. We recommend that the DIV provide us with more information and materials for our communication activitiesto local people, "- said Ms Nguyen Thi Bich Nga.
In order to promote the effectiveness of DI policy, to protect legitimate rights and interests of depositors, the DIV has been promoting a variety of communication activities. Mr. Ngo Quang Luong –full-time member of the DIV’s Board of Directors, said that in recent years, the DIV has organized many events in order to disseminate DI policy,in which the DIV actively coordinated with localSBV branches in provinces, PCFs and authorities to get DI policy across to a larger number of people. The DIV also took these opportunities to receivecomments, opinions and aspirations at thegrass-root levelon the difficulties and obstacles in the implementation of DI policy,thenmade proposals to relevant authorities for appropriate and timely adjustments in order to bringDI policy into life.
The DI scheme is the Government’s commitment to protect legitimate interests of depositors and contribute to maintaining the safe and sound system of credit institutions. Opinionsfrom the local levelwill serve as a basis for relevantauthorities to formulatepractical and appropriate policies which meetdemands of people as well as credit institutions.
