Trang Chủ
Integration has brought Vietnam new opportunities, promoting existing potentials, increasing the speed and quality of growth. But at the same time, the national economy has also become more sensitive to external as well as internal influences. Actions to adjust monetary policy or geopolitical fluctuations from other countries can trigger many chain reactions, affecting market sentiment and financial consumer sentiment, including depositors. At the same time, on the basis of rapidly developing information technology and social networks, all information is updated every second and spreads widely. Negative information - whether it is authentic or not can all bring insecurity, even panic in the public, leading to hasty, careless actions.
With a history of nearly 100 years, deposit insurance was established as a system to protect depositors from the loss of their insured deposits in the event the depository institution fails able to fulfill its debt repayment obligations as committed. Deposit insurance can be considered as a public commitment by the deposit insurer to return all or part of insured deposits (including principal and interest) to depositors when the insured institution is determined to be insolvent or cease operations.
Thus, the general objective of the deposit insurance policy is, first of all, to protect depositors, who have certain limitations in accessing information on the operation of depository institutions. At the same time, this policy strengthens public confidence, creates an official mechanism to handle trouble depository institutions, and participates in the process of handling financial crises, thereby contributing to system stability of credit institutions. The deposit insurance policy also aims at other objectives such as contributing to building a competitive and equal market for depository institutions of different sizes and levels of development; helping to create conditions to clearly define the responsibilities and interests of depositors, deposit-receiving organizations and the government; reducing the cost of handling bank failures and minimizing the financial burden on taxpayers in the event of a bank failures…
For depositors, the deposit insurer provides direct protection through reimbursement in the event the depository institution is determined to be insolvent or bankrupt. This is the most basic function for all deposit insurance models in the world in order to reduce depositors' losses in the event of a failure. In Vietnam, the deposit insurer not only has the function of payment but also examines, supervises, supports recovery and participates in special control of credit institutions participating in deposit insurance. These are all tools to promote credit institutions to operate safely and in accordance with the law, avoiding the risk of failure, thereby protecting depositors indirectly from possible damages.
In addition, DIV is also tasked with promoting policies and laws on deposit insurance. Raising public awareness is an essential component of the overall deposit insurance policy. Mr. David Walker - Secretary General of the International Association of Deposit Insurers (IADI) shared that, in the Core Principles for Effective Deposit Insurance Systems, the principles related to depositors are all important, and when it comes to developing an effective deposit insurance system, it is impossible not to mention raising public awareness. According to the IADI Secretary General, the public needs to have access to information about deposit insurance policies, understand the operations of the deposit insurer and how it can protect them. Thereby, when there is a problem or a crisis, the public can keep calm as well as maintain confidence in the stability of the financial system...
Banking is a special business. In order to operate smoothly and effectively, it needs a high trust foundation. But at the same time, as a business, credit institutions must also carry a certain level of risk, although limited to the lowest possible level. Risks do not only arise from the operations of the credit institution itself, but can arise when trust is chipped or broken, leading to contagion effects. When the authorities do not have a reasonable response, the consequences can become extremely serious, pushing a credit institution that is operating normally to the brink of collapse.
Therefore, in the period of information turbulence, the world has many changes, in addition to improving the operating safety standards, the quality of management of credit institutions, and the quality of credit institutions, it is necessary to enhance the role of the deposit insurer as well as communication and public awareness about this particular policy. Communication of deposit insurance policies should be considered a top priority, but should not be separated from the general structure of the banking industry communication system. Only in this way can a common awareness, openness and full information about banking activities, including deposit insurance, be created. Enhancing public confidence in the banking system in general also reduces risks for the deposit insurer.
It can be said that building, preserving and enhancing the trust of depositors is a long-term process, requiring an overall strategy, clear goals for each stage, focusing on a number of. target audience, and at the same time raise public awareness. The promotion of public trust in the banking system needs to be done regularly and continuously, because trust needs to be constantly fostered.
In addition to promoting the deposit insurance policy, it is necessary to simultaneously implement programs to disseminate financial knowledge to the public, especially those that bring financial management knowledge and skills to students of all ages. A secure finance can only be built from a healthy, transparent market and informed financial consumers willing to participate in maintaining market discipline.
Along with this process, the deposit insurance policy needs to be constantly improved and supplemented in order to keep abreast of the developments of the banking system, show a vision of the future prospects, thereby ensuring maximum promotion of the banking system. In the process of amending and supplementing the Law on Deposit Insurance in the coming time, Mr. Vu Van Long - Deputy General Director of DIV said that they will aim to remove difficulties and obstacles because it has not been specified in specific regulations in the Law on Deposit Insurance, as well as inconsistent regulations between the Laws. DIV is also ready to take on greater responsibilities in order to participate more deeply in the process of restructuring credit institutions, maintaining the safety and soundness of banking operations, thereby preserving and improve depositor confidence.
