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Clearly delineating the boundary between DIV’s examinations and the SBV’s inspections
Deputy Thach Phuoc Binh (Vinh Long) noted that the current Draft law expands DIV's examination mandate. However, Report No. 477, dated 13 November 2025, of the Governor of the State Bank of Vietnam (SBV) indicates that DIV is currently only authorised to report to the SBV and is not permitted to issue direct recommendations to credit institutions, even when it detects potential safety risks. In practice, DIV has detected numerous violations of people's credit funds and promptly recommended that the SBV take action. However, due to a lack of authority to issue direct warnings, responses have been slower than the actual evolution of risks.
“Meanwhile, in countries such as the United States (FDIC) and Korea (KDIC), the deposit insurer is always on the front line of risk warning. If we stop at examination and reporting only, we are overlooking a resource with 25 years of experience – a public financial institution with a wide network and direct contact with insured institutions,” Deputy Thach Phuoc Binh analysed.
Based on this assessment, Deputy Thach Phuoc Binh proposed that the Draft law be supplemented with provisions allowing DIV to issue direct warnings and recommendations to credit institutions when risks are identified during examinations, while simultaneously reporting to the SBV for appropriate supervisory measures. This authority does not constitute inspection or enforcement, but rather serves as a tool for early warning, helping mitigate systemic risk.
In the same vein on the examination activities of the deposit insurer, Deputy Thai Quynh Mai Dung (Phu Tho) emphasised that a common feature of insurance organisations is the need to monitor the “health” of insured entities in order to calculate premiums and identify and prevent risks that could trigger the use of the insurance fund for reimbursement. This also holds true for deposit insurance; therefore, allowing the deposit insurer to examine insured institutions is reasonable.
According to the SBV’s report, after more than 25 years of implementing the deposit insurance policy, DIV has built an extensive network comprising its head office, regional branches, and a team of competent, professionally trained staff. “Therefore, assigning the deposit insurer the examination function helps leverage this human resource and supports the SBV’s inspection work, while also providing more multi-dimensional and comprehensive perspectives on the operations of credit institutions,” Deputy Thai Quynh Mai Dung stressed.
Deputy Thai Quynh Mai Dung also requested that the drafting committee clearly delineate the boundary between DIV's examination activities and the SBV's inspection activities to avoid overlap or difficulties for institutions. At the same time, she called for clarification of the legal value of these examinations: "When an examination identifies signs of violation or potential safety risks, does the deposit insurer have the right to recommend or issue warnings to credit institutions? This is a critical factor to ensure the effectiveness, efficiency, and substantive nature of the deposit insurer's examinations."
Many other deputies also agreed that DIV’s examination activities do not constitute overlapping supervision but are an essential component of the mechanism for protecting the deposit insurance fund, similar to models applied by international deposit insurers.
The scope and limits of DIV's examination mandate will be clearly defined
Clarifying issues raised by National Assembly deputies, SBV Governor Nguyen Thi Hong stated that, in its capacity as supervisory authority, the SBV will clearly define the scope and limits of DIV’s examination mandate to ensure there is no overlap with the examination and inspection activities of the SBV or other competent authorities in supervising credit institutions.
In the course of examinations, the deposit insurer may issue recommendations and warnings to credit institutions. Ms. Nguyen Thi Hong noted that these are outcomes of examination activities and do not necessarily need to be explicitly provided for in the law. The SBV, as the regulatory authority, will have a complete and comprehensive picture of each credit institution’s situation.
“The State Bank of Vietnam will carefully consider DIV’s recommendations as a basis for decisions and remedial measures. In this way, examination activities conducted by the deposit insurer can enhance its responsibility for the safety of the credit institution system, while at the same time providing an additional examination channel to support State management of banking activities,” the Governor of the State Bank of Vietnam underlined.
Communication Department (translation)
