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The positive contribution of DIV to the banking sector
In 2024, the global economy faced numerous complexities and unpredictable fluctuations, placing substantial pressure on the management of monetary policy and exchange rates in Vietnam. Nevertheless, due to the decisive and timely leadership of the Government and the Prime Minister, the banking sector was able to effectively implement a variety of flexible and coordinated solutions, thereby assisting the entire political system in overcoming challenges and turning risks into opportunities.
Specifically, the SBV maintained low interest rates to guide the market in reducing lending rates, thereby providing support to businesses and citizens. The SBV also flexibly managed exchange rates, stabilizing the foreign currency market amidst global volatility, ensuring smooth liquidity of foreign currencies, and meeting the foreign exchange needs of the economy. Furthermore, the SBV successfully implemented measures to intervene in the gold market, contributing to market stability. The restructuring of weak credit institutions (CIs) was rigorously pursued, ensuring the continued stability and safety of the financial system, as well as safeguarding the legal rights of depositors.
In addition, the SBV took proactive steps in implementing credit programs and policies as instructed by the Government. The year 2024 also witnessed the passage of the Law on Credit Institutions by the National Assembly, effective from July 1. The SBV presented and issued a significant number of regulatory documents to ensure the smooth and unified implementation of this law by credit institutions.
Among the collective achievements of the banking sector in 2024, the positive contribution of the Deposit Insurance of Vietnam (DIV) cannot be overlooked. DIV played a crucial role in protecting the legal rights and interests of depositors, maintaining the stability of credit institutions, and ensuring the safe and sound development of banking operations. DIV effectively fulfilled its assigned responsibilities and introduced continuous innovations across all aspects of its operations. Notably, DIV actively proposed policy recommendations for the draft amended Law on Deposit Insurance, drawing from international best practices to advocate for necessary amendments to strengthen the system.
Simultaneously, DIV successfully carried out its responsibility for collecting deposit insurance premiums as directed by the SBV. The deposit insurer also effectively managed the investment of temporarily idle funds, which are a vital resource for better fulfilling its mission in the future. Additionally, DIV sent personnel to serve on Special Control Boards for specially controlled credit institutions, particularly in governance and management roles within people’s credit funds (PCFs). DIV also engaged in active communication efforts to strengthen depositor confidence in the operations of the banking system. It completed 100% of its scheduled examination of 250 insured institutions and conducted in-depth examination of 75 PCFs as per the Governor's directive. After five years of implementing the examination of PCFs under the SBV’s directive, it is clear that the DIV has executed this responsibility with great efficacy.
On behalf of the leadership of the SBV, I acknowledge and highly appreciate the efforts and contributions of DIV over the past year. I also commend the collective work of all DIV staff, who, under the leadership of the Board of Directors, have achieved significant results across a variety of activities.
Key Tasks for 2025
The year 2025 is of particular significance, marking the conclusion of the socio-economic development plan for the 2021-2025 period. The banking sector is committed to diligently fulfilling its tasks in 2025 and for the entire 2021-2025 period, especially regarding the Banking Development Strategy for 2025, with a focus on long-term objectives until 2030, and the Deposit Insurance Development Strategy for 2025, with orientations toward 2030.
In order to contribute to the successful completion of the political tasks assigned to the banking sector in 2025, I propose that the leadership and staff of DIV focus on the following specific tasks:
First, continue the implementation of the detailed action program for the Deposit Insurance Development Strategy to 2025, with orientations toward 2030. In 2025, DIV should review its performance and strive to achieve the targets outlined in the strategy.
Second, execute and successfully complete the financial and business plans for 2025 as approved by the SBV. The year 2025 represents a pivotal moment as the country enters a new era of development. In alignment with the resolutions of the National Assembly and the directives of the Government and the Prime Minister, the SBV has set a credit growth target of approximately 16% for 2025, focusing on lending to productive sectors and growth drivers as stipulated by government policy. As a key component of the banking sector, DIV must actively contribute to the achievement of these broader objectives.
Moreover, 2025 is a year filled with significant political events and milestones for the nation. Therefore, DIV should actively participate in and promote the banking sector’s initiatives and set clear targets for the deposit insurance system to proactively contribute to these efforts.
Third, effectively implement the collection of deposit insurance premiums and manage the investment of temporarily idle funds to strengthen DIV’s financial capacity. DIV should continue fulfilling its responsibilities as defined by the Law on Credit Institutions 2024, particularly in supporting credit institutions under special control or those experiencing solvency issues.
Fourth, enhance the effectiveness of examination and supervision activities, expanding the scope of examination as directed by the SBV. This includes increasing the number of PCFs examined under the SBV’s directive, ensuring that DIV serves as an effective tool to support the SBV’s inspection functions, thus better protecting the legal rights of depositors and ensuring the safe and sound development of the credit institution system.
Additionally, DIV should organize workshops and discussions to assess the outcomes of collaboration and information sharing between SBV units and DIV, especially concerning the delegation of information between SBV branches and DIV branches in recent years. The SBV’s Banking Inspection and Supervision Agency will serve as the point of contact to help DIV further enhance the effectiveness of examination for PCFs in the future.
Fifth, focus on doing research and proposing long-term issues, including the amendment of the Law on Deposit Insurance. The revision of the law should ensure a longer lifespan, provide a broader legal framework for deposit insurance activities, and refine DIV’s operational model in accordance with international standards. Furthermore, DIV should play a more significant role in restructuring, intervening, and resolving weak credit institutions using its financial and human resources.
In addition, the proposed amendments to the Law on Deposit Insurance should be comprehensive, clear, and widely applicable. For instance, consideration should be given to the possibility of charging risk-based deposit insurance premiums, ensuring market principles, transparency, and competition within the banking system.
Sixth, actively promote communication efforts and organize seminars and forums involving international and regional deposit insurers to share experiences on improving deposit insurance policies, including the Law on Deposit Insurance. DIV should also facilitate study tours to learn from advanced deposit insurance models with the participation of relevant ministries and agencies.
Seventh, accelerate the application of technology and effectively leverage the national credit information database, which serves as a valuable resource for directing, managing, and implementing DIV’s activities in the future.
Eighth, collaborate with the Banking Inspection and Supervision Agency and the SBV’s Organizational Department to review and restructure DIV’s organizational framework to ensure it is “Lean - Effective - Appropriate” as soon as possible, thus better supporting the SBV’s inspection functions. DIV should also reinforce efforts to implement savings practices, prevent waste, and promote efficiency across the deposit insurance system.
I trust that the leadership, staff, and employees of DIV will remain fully aware of their roles and responsibilities, working together to complete the assigned tasks in 2025 and make greater contributions to the development of the banking sector, while ensuring the protection of the legal rights and interests of depositors.
Communication Department (translation)
