Trang Chủ
Renovating supervision activities
Supervision and examination, along with financial assistance, reimbursement, etc. are crucial professional operations of DIV. Those operations are aimed at early detecting violations or potential risks and proposing measures to help insured institutions run effectively. DIV’s assessments are very important resources for the supervision of the whole financial system.
These activities are well prepared in terms of human resources and the implementation plan to avoid affecting normal operations of credit institutions. In 2010, DIV continued to test the risk warning model over insured institutions, contributing to minimizing risks to the Deposit Insurance Fund and laying the foundation for further research on early warning model in Vietnam. In 2010, DIV conducted supervision over 100% insured institutions and on-site examinination at nearly 300 insured institutions.
Maintaining and developing Deposit Insurance fund as well as making policies concerned deposit insurance more transparent
The total amount of temporarily dormant capital invested by DIV (as of 31 December 2010) hit VND 6,599 billion, 34.56% higher compared with the same period last year. Total returns from capital invesment reached VND 670 billion, 81% increase in comparison to total returns in 2009. DIV always closely monitors fluctuations in the financial and monetary markets to invest capital sources efficiently and effectively, maintain and develop its funds. At the same time, DIV has restructured its investment portfolio timely, set up investment schemes in accordance with the rules and regulations on the management and use of DIV’s temporarily dormant capital. DIV has strictly monitored and fully recovered principal and interest of due investment capital in order to increase income from capital investment activities and contribute to raising financial capacity of DIV.
Over the last year, DIV has granted, renewed, re-issued, supplemented 1,215 certificates of deposit insurance, 402 more compared with number of certificates issued in 2009. Especially, DIV instructed newly established credit institutions about DIV regulations. Thereby, it enhanced awareness of these institutions and the public in general about depositors’ rights, making policies on deposit insurance more transparent and consistent with international practices.
Continuing to monitor and liquidate 35 failed insured institutions
35 insured institutions dissolved in 9 provinces continued to be monitored and liquidated in 2010. DIV recovered VND 1.373 billion from liquidation councils, raised the total collection of VND 7.578 billion compared with a total amount of nearly 20 billion that DIV reimbured depositors at 37 closed insured institutions.
Liquidation and reimbursement are measures aimed at directly protecting depositors. They are not only economically important measures but also play a critical role in social security, helping to maintain political stability in the localities where there are some collapsed credit institutions. In 2010, there was not any failed insured institution. Therefore, DIV has not reimbursed depositors but DIV has been strongly calling on relevant authorities to raise deposit insurance coverage limits to meet the expectations of depositors as well as to make it more consistent with the reality in Vietnam.
Actively integrating into the international community and promoting international cooperation
The year 2010 marked an important step of the International Deposit Insurance Community when the set of core principles for effective deposit insurance system was officially approved by the International Association of Deposit Insurers (IADI) and the Basel Committee on Banking Supervision (BSBS). This laid an important basis for many countries to build new Deposit Insurance Systems or reform their current ones. The core principles are expected to be included in the Financial Sector Assessment Program (FSAP). In Vietnam, DIV has promply introduced the basic contents of the 18 principles to ministries, departments and all relevant units in DIV system. This set of 18 core principles for effective deposit insurance system is a document summerizing theory and practice through the development of the world’s Deposit Insurance System with the advanced international practices aimed at best protecting depositors and ensuring the safety of banking activities. It is considered as a good reference for lawmakers, policymakers in Vietnam especially during the period in which the Vietnam’s National Assembly is urgently building the Law on Deposit Insurance.
DIV continues to actively engage in the framework of IADI’s activities, and promote its international cooperation activities with Deposit Insurers in South Korea, Taiwan, Canada, Japan and the international financial institutions such as Sri Lanka Central Bank, the Asian Development Bank, Federal Department of Economic Affairs – Switzerland.
Modernizing DIV system
In 2010, DIV has taken specific steps and actions related to the DT#1 consultancy package within the framework of the FSMIMS Project to the State Bank of Vietnam, the Credit Information Centre and DIV funded by the World Bank which started since 2009 (As scheduled, the project includes two phases: Phase 1 corresponds to DT#1 package and Phase 2 corresponds to DG#1 package).
In particular, the specific objectives of DIV in the project are: improving risk forecast and assessment capacities; enhancing professional capacity of reimbursement; providing timely financial assistance to insured institutions in temporary difficulties; and actively engaging in liquidating the assets of closed institutions; building modern IT infrastructure; strengthening the capacity of DIV’s staff. The year 2011 is seen as a pivotal year for the project on DIV system modernization. The successful implementation of international consultancy package plays a essential role in shaping the development model of DIV in the coming years.
Enhancing public interaction and communication
Since its establishment, public awareness activities have played an active role in meeting DIV’s common objectives. Public awareness activities have been completed professionally with clear strategic directions and increasing interaction with the public. Especially, during the period in which the global financial crisis adversely affected the Vietnamese banking and financial system, PR activities make an important contribution to maintain the depositors’ confidence, prevent panic and bank runs. Summarizing and determining the next steps of PR activities clearly show DIV’s interests and demonstrate the importance of PR activities in realizing the common objectives of DIV.
