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Digital transformation to ensure the safety and smoothness of the information technology system for deposit insurance activities

The industrial revolution 4.0 is coming about strongly, all activities of the society are moving to the network environment, which poses many potential risks about information security. With the first steps in participating in the digital era, one of the most important requirements for Deposit Insurance of Vietnam (DIV) is to ensure the smoothness and safety of the Information Technology (IT) system to promote continuity for operation. At the same time, it is necessary to build a specific digital transformation roadmap, in line with future strategy and orientations. This is a both regular and urgent task of the DIV underthe requirements of digital transformation.

Which types of deposit are covered by deposit insurance?

Deposit insurance is considered a "steel shield" that protect depositors. According to the Law on Deposit Insurance, insured deposits are deposits in Vietnamese Dong of individuals with insured institutions in the forms of time deposits, demand deposits, savings accounts, certificates of deposit, bills, notes and other types of deposits as stipulated in the Law on credit institutions.

Spreading digital transformation in the banking industry

To carry out the tasks in the Banking Sector Digital Transformation Plan, the whole system has implemented many solutions that bring good results, creating spillover effects to many other industries.

Supervision, examination, and resolution of People's Credit Funds - the basis for DIV to continually participate in restructuring credit institutions

The supervision, examination, and resolution of Deposit Insurance of Vietnam (DIV) of deposit insurance participating organizations, especially People's credit funds (PCFs) play an important role in detecting and promptly handling violations, give early warnings and recommend remedial measures to ensure the safe operation of the PCFs, thereby contributing to protecting the interests of depositors and preventing negative effects on the operation of other PCFs.

Measures to improve efficiency of public awareness activities by Deposit Insurance of Vietnam

Communication activities to raise public awareness on deposit insurance play an important role in contributing to building an effective deposit insurance system, increasing depositors' confidence in the deposit insurance policy and the banking and financial system. This is also an important goal set by the Deposit Insurance of Vietnam (DIV) in the coming time in the context of the new normal, overcoming the effects of the Covid-19 pandemic.

Upgrading legal frameworks for enhancing the efficiency of deposit insurance operations

In Vietnam, the deposit insurance scheme was officially initiated in 1999 and went into operation in May 2000. The Law on Deposit Insurance was promulgated on June 18, 2012, and took effect on January 1, 2013. Up to now, after ten years of its operation, it is essential to review, supplement and update the Law on Deposit Insurance and its relevant regulations to improve the efficiency and contribution of deposit insurance operations and promote the better protection of depositors’ rights and interests.

Improve financial literacy for depositors

Deposit insurance policy plays an important role in enhancing public confidence in the banking and financial system. Raising public awareness of deposit insurance policy contributes to promoting the process of national financial information dissemination.

Efforts to effectively implement the examination plan of insured institutions in 2022

The intense outbreaks of the Covid-19 pandemic since late April 2021 amidst new strains of coronavirus spreading all over the country have had a profound impact on all aspects of social life and activities of agencies and units. Accordingly, the examination conducted by agencies and units in general and the Deposit Insurance of Vietnam (DIV) in particular, which has its specialized features, has been affected considerably.

Protecting legitimate rights and interests of depositors by deposit insurance policy

According to the Decision No. 32/2021/QD-TTg dated October 20, 2021 of the Prime Minister, on December 12, 2021, the coverage limit on deposit insurance was increased to 125 million dongs per individual per insured institution (the previous limit was 75 million dongs). The periodic increase of the coverage limit helps better protect the legitimate rights and interests of depositors.

Implementing deposit insurance policy at microfinance institutions: Ensuring the legitimate interests of depositors

Reality has proven that microfinance activities continue to affirm their essential role in enhancing the level of access to financial services of the poor and low-income populations, making a significant contribution to implementing the policy of hunger eradication, poverty alleviation, and restriction of usury, especially in rural and remote areas. Therefore, the Government needs to continue effectively implementing solutions to build and develop microfinance activities, including implementing deposit insurance policies at these institutions, thereby mobilizing and expanding the scale of capital sources for microfinance institutions.

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