Trang Chủ
Following is the full text of the interview with Mr. Nguyen Manh Dung:
Could you please let us know how science and technology has been applied to the Deposit insurance of Vietnam (DIV)'s operations?
The year 2014 marks the 15th anniversary of DIV. Over the past 15 years, we have designed and implemented a sustainable development strategy based on 5 pillars namely, fist, construction and enhancement of the legislative infrastructure; second, enhancement of financial capability and assurance of the transparency of the system; third, international integration; fourth, human resources development; and last but not least, IT-based modernization of DIV. This shows our awareness of the importance of IT as an indispensable driving force for sustainable development. In the last few years, DIV has implemented the DIV component of the Financial Modernization Sector and Information Management System (FSMIMS) Project financed by World Bank to support the State Bank of Vietnam (SBV), Credit Information Center (CIC) and DIV in improving the delivery of their main functions in accordance with international standards for the banking sector. DIV’s component, in particular, constitutes a large part of the Project. This aims to build new operational procedures which approach international standards. After the project completion, all of DIV's operations will be IT-based.
What will the impacts of FSMIMS Project on modernizing DIV's operations upon completion?
Having been implemented since 2008 and currently being in the final phase, FSMIMS Project plays a pivotal role in implementing DIV's development strategy by modernizing DIV's operations based on IT. This modernization process includes: training and enhancing the staff’s competence; diversifying, improving quality of services and integrating with international banking systems; improving information sharing among DIV's internal units as well as DIV SBC, CIC and deposit insurance member institutions; creating uniformity of the core IT structures across these agencies. Above all, the Project will contribute to the stability and soundness of the banking system and help the project beneficiaries engage in international integration through approaching the best international practices.
Could you please elaborate on how the application of IT will contribute to protecting depositors and supervising the financial banking system?
Presently, in spite of being in implementation process, FSMIMS Project has created initial positive impacts. When the Project is finished in 2016, we will see more results. As you know, DIV has two main tasks: to protect the legal rights of the depositors and to contribute to the safety and soundness of the banking system.
Firstly, with respect to deposit insurance pay-out, instead of 60 days as legally stipulated, with the application of IT, DIV will need only 15 days to reimburse announced depositors.< o:p>
Secondly, with respect to off-site supervision, with the modern IT-based indicators and models for supervision, DIV will be able to off-site detect banks' violations and immediately send out warnings. This can help avoid failures, thereby actively protecting depositors. Especially, the off-site supervision will be conducted from Hanoi without any inconveniences to deposit insurance members. In addition, other activities including financial management, logistical work and instruction by the Management Board will also rely on IT infrastructure.
You have mentioned that the off-site supervision can help detect dangerous risks, and even alert banks to potential risks. In your opinion, will DIV and Banking Inspection and Supervision Agency (SBV) coordinate closely to detect and warn against risks?
During the inspection and supervision process, DIV and Banking Inspection and Supervision Agency (the State Bank of Vietnam) will cooperate closely due to two main reasons. Firstly, when the completion of the Project, DIV, SBV and CIC will be linked so that information can be accessed by one another. Upon receiving information from SBV's data warehouse or directly from deposit insurance members, DIV can give warnings against violations or risks if any in two simultaneous ways: (i) directly informing the violation organization for its immediate correction (ii) reporting to the SBV.
If necessary, DIV can access the data on credit organizations from CIC (regarding their performance and their relationships with businesses). In short, in order to conduct supervision, DIV has to coordinate closely with and report to SBV- the state management organization.
Comparing DIV's IT capability with that of other deposit guarantees, how would you rate DIV's?< /p>
In Asia, in terms of application of IT to deposit insurance, top three countries are Japan, Korea and Taiwan. In the coming years, upon the completion of FSMIMS Project, our IT system may be equivalent to that of Philippines, Thailand and Indonesia. Over the next 7-8 years, hopefully, we will come close to the above-mentioned top countries.
Thank you!
