Trang Chủ
DIV is a state-owned financial institution that operates not for profit, to protect the legitimate rights and interests of depositors and implement deposit insurance policy. With the characteristics of operations that must ensure capital safety and self-cover costs, activities of DIV outside the scope of direct payment and protection of depositors need to be calculated and considered closely to avoid affecting core public policy goals, while not standing aside from the ongoing restructuring process of credit institutions.
Ensure the rights and interests of all parties
The Banking Industry Development Strategy to 2025, with a vision to 2030, has set the task of amending the Law on Deposit Insurance in the period of 2021 - 2025, in order to further enhance the role of DIV, creating conditions for DIV to participate more deeply in the process of restructuring credit institutions.
The project to consolidate and develop the People's Credit Fund system until 2020, with a vision to 2030 issued together with Decision No.209/QD-NHNN dated January 31, 2019 of the Governor of the State Bank of Vietnam also proposed and come up with solutions to enhance the role of DIV. Specifically, strengthen the role and coordination of DIV in handling, resolving and participating in supporting weak People's Credit Funds that are placed under special control according to the provisions of the Law on Credit Institutions 2017.
The strategy for developing deposit insurance until 2025, with orientation to 2030, issued on December 30, 2022 under Decision No.1660/QD-TTg, has enhanced the role of DIV, being an important basis for DIV to improve operational capacity and efficiency, participate more deeply and effectively in the restructuring process of credit institutions.
Sticking closely to the Banking Industry Development Strategy, the Deposit Insurance Development Strategy was built with the overall goals of: (i) Protecting the legitimate rights and interests of depositors, actively contributing to maintaining the stability of the system of credit institutions and foreign bank branches, ensuring the safe and healthy development of banking activities; (ii) Improve quality and efficiency in deposit insurance activities; early detection and warning of potential risks for organizations participating in deposit insurance; Participate in effective restructuring of weak deposit insurance participating organizations; calculate and collect deposit insurance fees, capital management and investment; disseminate deposit insurance policies and deposit insurance reimbursement in accordance with international practices and provisions of Vietnamese law; and (iii) Strengthen the financial capacity of deposit insurance organizations, complete a reasonable organizational model to further enhance operational capacity, and better meet the role of deposit insurance organizations.
Maximize the depositors’ protection mission
The role of DIV in handling, resolving weak credit institutions is not only determined in the Deposit Insurance Development Strategy but also in the Vietnam Banking Industry Development Strategy to 2025, with a vision to 2030. Specifically, DIV will coordinate closely with the State Bank of Vietnam in the special control process to ensure the rights of depositors and implement the functions and tasks specified in the Law amending and supplementing a number of articles of the Law on credit institutions and develop a scheme to apply additional measures and forms of resolving weak deposit insurance participating organizations in a manner consistent with international practices and actual conditions in Vietnam.
During the process of participating in special control, DIV detected and proposed timely handling of violations of legal regulations on deposit insurance at people's credit funds to limit fraud and profiteering of deposit insurance, aiming to protect the legitimate rights and interests of depositors. DIV has coordinated well in the process of deploying and assigning special control tasks; promptly provide direct or written opinions on arising issues; exempt deposit insurance fees for entities participating in specially controlled deposit insurance; appoint officials to join the Special Control Board.
The deposit insurance development strategy orients DIV to develop according to a comprehensive development model, promoting internal resources, completing the task of participating in restructuring credit institutions, protecting the legitimate rights and interests of depositors; towards higher standards in ensuring the safety and health of the operations of the credit institution system, contributing to macroeconomic stability and sustainable growth.
The Law amending and supplementing a number of articles of the Law on Credit Institutions (2017) took effect from January 2018, creates a legal corridor, enhancing the role and position of DIV in the restructuring process of People's credit funds and microfinance institutions. Accordingly, DIV participates in the special control process; participate in evaluating and implementing recovery plans for weak credit institutions; make special loans to specially controlled credit institutions; buy long-term bonds of credit institutions to support specially controlled credit institutions; participate in management and liquidation of assets at credit institutions according to the provisions of law.
According to information from DIV, this organization has now basically completed the proposed contents in the Law amending and supplementing the Law on deposit insurance, focusing on main issues, including: Capacity building finance and operations of the deposit insurance organization; Supplement the rights and obligations of the deposit insurance organization; Complete legal regulations so that DIV can participate more effectively in the process of restructuring credit institutions; Complete regulations on insurance payments. Specifically:
Regarding improving financial capacity, DIV said they will research and propose competent authorities to amend and supplement relevant legal regulations, ensuring full legal basis to:
Increase charter capital for the deposit insurance organization to 10,000 billion VND by 2025 and to 15,000 billion VND by 2030 from self-accumulated sources and other legal capital sources to ensure the financial capacity of the deposit insurance organization, affirming its commitment State commitment and enhance depositors' confidence in deposit insurance policy, ensuring resources for effective implementation of deposit insurance activities.
Strengthen financial capacity through diversifying investment forms and portfolios; Supplementing the form of loan from the SBV in case the deposit insurance organization's capital source is not enough to reimburse.
Research additional investment portfolios including: Buying and selling bonds guaranteed by the Government; Depositing money at commercial banks with good operating quality; Buying and selling bonds, promissory notes, bills, and certificates of deposit issued by commercial banks with good operating quality;
Develop a project to access capital support in case the deposit insurance organization's capital is temporarily insufficient to reimburse.
Research, implement and supplement the investment portfolio of buying and selling local government bonds according to the provisions of the State Budget Law, the Law on Public Debt Management, guiding documents and receive high credit ratings for period of 2025-2030.
Regarding the content of supplementing the rights and obligations of the deposit insurance organization, the DIV believes that adding the rights and obligations of the DIV aims to clearly define the position and role of the organization, helping to better protect the rights and legitimate interests of the depositors, contributing to maintaining the stability of credit institutions and ensuring the safe and healthy development of banking activities.
Therefore, it is necessary to supplement the rights and obligations of the deposit insurance organization in the direction of enhancing the role and capacity of the organization in: Participating in restructuring weak credit institutions; Coordinating with the SBV to examine and supervise organizations participating in deposit insurance according to the scope, content, and deadline decided by the SBV; Appointing people to participate in resolving credit institutions with special examination in accordance with the functions and tasks of DIV according to the requirements of the SBV; Communicating about the activities of the deposit insurance organization; Training and fostering knowledge about deposit insurance for organizations and individuals related to deposit insurance policy.
Completing the legal regulations for DIV to participate more deeply in the process of restructuring credit institutions, DIV said they will propose additional rights and obligations of DIV to evaluate the feasibility of the compulsory transfer plan, merger, consolidation, transfer of all shares and capital contributions; implement support measures, especially financial ones according to decisions of competent authorities for organizations participating in supporting the implementation of restructuring plans.
In case the DIV participates in the bankruptcy plan for a credit institution, it is necessary to supplement regulations for the DIV to examine and supervise the implementation of the bankruptcy plan approved by the competent authority.
In addition, add specific regulations on the management, use and disposal of assets by DIV during the implementation of support measures when participating in restructuring credit institutions subject to special inspection according to the provisions of the laws.
Regarding insurance payment regulations, DIV is currently doing research on contents to ensure prevention of deposit insurance profiteering, responsibility for coordination between DIV and relevant agencies; create a legal corridor for the deposit insurance organization to participate in liquidating assets of insured institutions to maximize recovery value.
At the same time, develop contingency plans and payment rehearsals for each type of organization participating in deposit insurance; develop a payment manual for each type of organization participating in deposit insurance to standardize the payment process, diversify payment forms, and apply information technology to the payment process to shorten actual payment time.
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