Trang Chủ
The new contents of the Law on DI
The Law on DI came into being in the context that the country's economy had been under in-depth integration into the world, with the banking system being strongly influenced by the domestic and international conditions; public confidence in the banking and financial system being declined. In addition, several contents of the DI policy on protection of depositors’ interests are not suitable. To end this, the National Assembly passed the Law on DI in order to better protect depositors’ interests and ensure the safe and sound development of the banking system to meet demands in the new situation. Accordingly, some important issues on DI policy should be adjusted, including an increase in insurance coverage limit, a shift to risk-based premium from flat-rate method, legal status of the Deposit Insurance Organization... The Law has not yet provided with concrete regulations on the issues but basic ones.
For effective implementation of the Law on DI
Some contents of the Law on DI need guidance documents on its implementation such as insurance coverage limit, premium, funding, legal status of the Deposit Insurance Organization... Relevant bodies should urgently review the Law on DI to issue guidance documents timely in line with the Law on DI. Meanwhile, the Deposit Insurance Organization should give advisory opinions pro-actively, positively to ensure the quality of documents guiding and enhancing enforcement of the Law on DI.
The DI coverage limit and premium are the two important issues of DI policy affecting depositors and insured institutions. Especially, it is necessary to specify DI coverage limit as soon as possible to enhance public confidence in the banking system. Accordingly, coverage limit should be carefully considered to ensure the level at as 5-6 times as income per capita; while it should be adjusted in a predictable, flexible and timely manner if any. Regarding premium, there is a necessity to quickly identify the level in accordance with market discipline and transparency. However, it should be noted that there are strict regulations on a number of issues, for examples, which agencies shall be responsible for rating credit institutions as a basis for premium assessment, responsibilities relating to information secret, sanctions against violators ...
The necessity to improve the capacity of the Deposit Insurance of Vietnam
The Deposit Insurance Organization operates under the Law on DI. To ensure effective implementation of DI policy and enhance public confidence, the State Bank Law has stipulated that the Deposit Insurance Organization is a relatively independent institution. The Deposit Insurance Organization is an important member in the financial safety net. As banking business is based on confidence, the Deposit Insurance Organization should design a model to ensure people feel assured of being fully protected by an independent institution. Additionally, the Deposit Insurance Organization shall actively contribute to the banking system restructuring process. Concretely, as stipulated in the Law on DI, the Deposit Insurance Organization is a financial institution established and assigned functions and duties by the Government. In the course of building up documents guiding the implementation in details, it is vital to avoid specific regulations that are not compatible with the Law, reducing public confidence. In this circumstance, the Party and the State have been striving to restructure the banking system, dealing with non-performance loans, should it be possible for relevant bodies to make researches on international experience and practices so that the Deposit Insurance Organization can learn from in a bid to ensure the minimum cost principle and benefit depositors, the banking system and the national economy.
Translated by T.P.H
