Trang Chủ
On June 8, 2022, the Prime Minister issued Decision No. 689/QD-TTg approving the Project "Restructuring the system of credit institutions associated with resolving bad debt period 2021 - 2025" with the main goals of creating a clear and substantive change in restructuring the system of credit institutions associated with resolving bad debt ; strive to reduce the number of credit institutions by 2025, basically resolve weak banks and People's Credit Funds(PCFs), prevent new ones from arising, and ensure a healthy system of credit institutions and sustainable development; promote the resolution of bad debts, improve credit quality, prevent and minimize newly arising bad debts; improve the financial capacity of credit institutions...
In order to achieve the above goals, first of all, the National Assembly and the Government have also directed the need to continue perfecting the legal system in the banking sector such as: moving towards legalization of bad debt resolution; supplement and amend the Law on the State Bank (SBV), the Law on credit institutions, the Law on deposit insurance and related sub-law documents. In addition, it is necessary to accelerate the process of restructuring and healthy credit institutions, including PCFs, towards meeting international standards and practices; improve management, supervision, safety and stability of the financial and monetary system by empowering management and supervision agencies to be independent and empowered to respond quickly and effectively.
In particular, it is necessary to clarify and increase the role of the Banking Supervision Agency and DIV. The Government and SBV have consistently prioritized protecting the legitimate rights and interests of depositors during the process of restructuring credit institutions. . With its functions and tasks, DIV has contributed to maintaining the stability of credit institutions, guaranteeing the rights of depositors, and increasing people's trust in the credit institution system.
According to the provisions of the Law on deposit insurance and the Law on credit institutions (2017), DIV contributing to the financial support and restructuring of credit institutions to protect depositors and maintain the healthy development of credit institutions. DIV protects depositors through professional activities, such as remote supervision of 100% of public institutions, planned on-site examination and in-depth examination under the direction of the Governor of the SBV. In the past 4 years, the Governor has assigned the DIV to comprehensively inspect the People's Credit Fund of more than 100 funds (60 funds in 2023). When DIV recognizes errors, existing problems, risks, and weaknesses, it informs the SBV for prompt correction and resolution. When a credit institution has problems, or is placed under special control, DIV provides financial support by providing special loans and buying bonds from supporting credit institutions; appoint officers to join the Special Control Board, evaluate the considerations of the recovery plan... For depositors If the public institution becomes insolvent or bankrupt, DIV will pay the depositors in accordance with the insurance coverage limit of 125 million VND. In the process of restructuring credit institutions, ensuring the trust of depositors is very important. Since its establishment, DIV has paid insurance to depositors at 39 dissolved and bankrupt People's Credit Funds. Recently, the operations of PCFs have stabilized, so DIV does not have to reimburse. DIV needs to participate more deeply and effectively in restructuring credit institutions. DIV is a tool of the Government and the SBV in protecting the legitimate rights and interests of depositors, contributing to maintaining the stability of system of credit institutions. Therefore, the Government and the SBV have assigned the task to DIV to participate more deeply and effectively in restructuring the system of credit institutions. It can be said that the role of DIV has become clearer through the legal documents issued. In addition to the tasks specified in the Law on Credit Institutions (2017), Decision no.689/QD-TTg dated June 8, 2022 approved the project "Restructuring the system of credit institutions associated with resolving bad debts in the period of 2021 – 2025” and Resolution No.62/2022/QH15 on questioned activities at the 3rd session, recently issued by the 15th National Assembly, all clearly point out the need to research, review, amend and supplement the Law on deposit insurance and relevant legal documents ; adding functions and tasks of DIV to participate in restructuring weak credit institutions. Recently, Decision no. 1382/QD-NHNN (August 2022) issued the action plan to implement the project "Restructuring credit institutions associated with resolving bad debts in the period 2021 - 2025" according to decision no. 689 /QD-TTg of the Prime Minister (June 2022), the Governor of the State Bank also directed: "DIV have to continue to review, research, amend and complete the Law on deposit insurance and related legal documents." In the direction of supplementing the functions and tasks of DIV, participating in restructuring weak credit institutions; research and amend the Law on deposit insurance to use deposit premium to deal with weak People's Credit Funds...". These functions and tasks mainly focus on the goal of supporting specially controlled credit institutions to recover and return to normal operations. In addition, DIV also directly participates more deeply in the process of restructuring the PCFs such as: participating in the Special Control Board for the PCFs, giving opinions on the specially controlled PCFs recovery plan It can be seen that, in the provisions of law, the role of DIV has been emphasized and clarified. This is the basis for DIV to participate proactively and more effectively in the next phase of the restructuring process of credit institutions.. For the deposit insurance organization to contribute more actively and effectively to the process of restructuring credit institutions (PCFs) associated with resolving bad debts in the period 2021 - 2025, aiming to develop modern credit institutions with fully and firmly and safe operations, the following measures need to be taken: Strengthen the role of DIV in the process of restructuring credit institutions, research is needed to proceed to amend and supplement the Law on credit institutions and the Law on deposit insurance to ensure synchronization with current legal framework, consistent with reality and oriented towards international practices; help enhance the position and role of DIV to participate more deeply and effectively in the process of restructuring the PCF system; better protect the legal rights of depositors, contributing to maintaining the safe and healthy development of banking activities. specifically, it is necessary to supplement regulations such as: DIV provides special loans to specially controlled credit institutions, DIV buys long-term bonds from supporting credit institutions. In particular, supplementing regulations that DIV can resolve and intervene early, especially for PCFs that are specially controlled through forms such as: Direct takeover, participation in governance or capital contribution to control activities of PCFs. The Law on deposit insurance also needs to clearly stipulate the supervisory and inspection role of the DIV to be able to assess risks and give early warnings to credit institutions, especially PCFs through empowering DIV to have deep and complete access to information on assessing the health of credit institutions. On the DIV side, it is also necessary to proactively improve financial capacity, operational efficiency, human resource quality, information technology application, and build and implement a digital transformation plan to meet new requirements; have a risk prevention mechanism to be able to respond to incidents that may occur in the banking system. At the same time, DIV can become an effective supervision channel for credit institutions by learning advanced deposit insurance organizational models to detect early signs of irregularities in banking operations, contributing to maintaining the credit institutions system, maintaining market discipline; increasingly better protect the legitimate rights and interests of depositors in the process of restructuring credit institutions in the coming time. Along with that, communication policies and laws on deposit insurance to enhance public trust and contribute to ensure the safety of the system of credit institutions during the restructuring process is extremely important. Because in the process of restructuring credit institutions, a lot of information is disturbed that easily leading to a communication crisis, destabilizing the operations of credit institutions. Therefore, communication activities contribute to minimize the risks of mass withdrawals leading to credit institution collapse. To do this job well, DIV needs a short, medium and long-term communication strategy The target audience for policy communication must be clearly identified: in the PCFs system, outside the PCFs system are depositors and the public; prioritize remote and remote areas with little access to information about banking activities. Each audience needs to use appropriate communication channels, appropriate time, and appropriate duration; increase the use of communication through digital tools and social networks to spread to a large number of young people, communication through mass media and newspapers is still an effective channel. Policy communication through conferences, seminars, and discussions. Promote communication activities through the implementation of the operations of DIV, for example, when examining PCFs through comparing savings books or comparing loans, DIV officers distribute leaflets and explain and communication policies effectively. Promote policy communication at the annual congress of People's Credit Unions or organize conferences of People's Credit Unions in the area to disseminate the law. Attend conferences organized by local agencies and organizations to develop policy communication effectively and minimize costs. Through the implementation of the Deposit Insurance Development Strategy to 2025, with a vision to 2030 approved by the Prime Minister, develop an action program to implement the strategy associated with the policy communication program. These will be the foundations for DIV to have a basis to effectively implement tasks, especially tasks that participate more deeply in the process of restructuring credit institutions (including PCFs) in the coming time./.
Communication Department
