DIV disseminates the tasks in 2021

10:22-28/01/2021

 “2020 - a year of unprecedented difficulties and challenges for the country and the banking industry, but Deposit Insurance of Vietnam (DIV) has basically completed the assigned tasks, continuing to innovate all aspects of activities, positively contributing to the overall performance of the banking sector, especially the restructuring and resolution of troubled People's credit funds ”- First Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu made such a comment when attending and giving directions at the Conference on implementing the tasks in 2021 of the DIV held on January 12, 2021, at Hanoi.

 

SBV First Deputy Governor Dao Minh Tu speaks at the Conference

Attending the meeting were representatives of leaders of Banking Supervision Agency and a number of departments of the SBV; representatives of the Central Committee for Internal Affairs, the Central Inspection Committee; Party Committee of Central business block.

On the side of DIV, there were Mr. Pham Bao Lam - Chairman of the Board of Directors; Mr. Dao Quoc Tinh - General Director; Board of Directors, Board of Management; Controllers; the former leaders of DIV and leaders of the departments and regional branches of the DIV.

 

 

On the opening speech at the conference, Chairman of the Board of Directors of DIV Pham Bao Lam emphasized that, despite encountering difficulties and challenges due to the negative impact of the Covid-19 pandemic and natural disasters, DIV has completed most of the key tasks, including the proposed inspection plan, especially the inspection plan of 18 PCFs under the direction of SBV Governor and the communication plan in 2020. At the same time, DIV supervised the credit institutions, the troubled PCFs and promptly propose suggestions to the SBV. DIV has proactively assigned staff to participate in the Supervisory Board, especially for some weak PCFs, coordinated with SBV provincial branches to propose resolution plans to ensure the rights and benefits of depositors, contributing to maintaining social security in localities.

According to Mr. Pham Bao Lam, DIV has successfully completed the plan to collect deposit insurance fees in 2020, implemented a fee waiver for the special controlled credit institurions as regulated and proposed to the SBV to consider fee exemption, reduction or delayed payment for institutions affected by epidemics and natural disasters. DIV has managed and invested the temporarily idle capital on principle of ensuring safety and development.

According to DIV’s report, under the close direction of the SBV, with the spirit of initiative and creativity, DIV has successfully achieved the dual goal of fighting against the Covid-19 epidemic and completing the assigned tasks in 2020. Thereby, DIV has well protected the legitimate rights and interests of depositors, contributing to maintaining the credit institution system's stability, ensuring the safe and healthy development of banking operations.

 

In order to successfully complete the key tasks in 2021, DIV General Director Dao Quoc Tinh has proposed a number of solutions and recommendations related to the operating model of DIV, the participation in handling the credit institutions (purchase, sale, merger, dissolution, bankruptcy, compulsory transfer or bridge bank, purchase of supporting bank bonds, special loans, flexible coverage limits ...) ... These contents will be specified in the proposed amendments and supplements to the Law on Deposit Insurance or other documents.

Giving directions at the Conference, SBV First Deputy Governor Dao Minh Tu highly appreciated the results of DIV in 2020 and agreed with the proposed key tasks in 2021. First Deputy Governor noted that the DIV must focus on 7 key tasks in 2021, especially in restructuring and handling weak PCFs.

            On behalf of the DIV, Chairman Pham Bao Lam expressed sincere thanks to SBV's leaders and First Deputy Governor Dao Minh Tu for the attention and close guidance on the operation of DIV. Mr. Pham Bao Lam affirmed that DIV would closely follow First Deputy Governor's direction to fulfill the mission of protecting the legitimate rights and interests of depositors, contributing to ensuring the safety of the banking system and social security. First Deputy Governor's directing opinions encouraged, motivated and recognized the results that DIV achieved in 2020, and set out key tasks that DIV should focus on in 2021.

At the conference, Mr. Dao Minh Tu awarded the Prime Minister Certificate of Merit, SBV Emulation Flag, and emulation titles of the banking sector to units and individuals with extinguished achievements in the DIV system.

 

 

DIV’s key tasks in 2021

Develop and implement the Resolutions, Plans, and Action Programs as guided and directed.

Study and propose amendments and supplements to the Law on Deposit Insurance under the direction of the SBV to effectively implement assigned additional tasks (such as special lending; buying long-term bonds from supporting credit institutions; pricing the feasibility of the credit institution's recovery plan under special control; participating in the setting up the plan for bankruptcy of a specially controlled credit institution). In particular, amending and supplementing the legal basis for DIV to promote its role and make use of existing financial resources to support and handle weak PCFs, contributing to ensuring the security of PCF system.

Develop an action program to implement the Strategy to develop deposit insurance to 2025, with a vision to 2030. Organize the implementation of the Strategy right after it is approved by the Prime Minister.

Complete the Scheme of differential deposit insurance fees at the request of the SBV. Continue to coordinate with related units to increase the charter capital of DIV from the results of FSMIMS Project.

Fully and promptly implement deposit insurance operations according to the regulations on the organization and operation of DIV, under the direction of the SBV.

Develop and complete research topics of DIV. Deploy the application of research results into practice. Well implement international cooperation activities.

 Develop and complete a system of governance documents to meet the requirements of legal basis in the implementation of DIV activities.

Improve staff profession, ethics and work, meeting requirements to complete assigned tasks in line with the development of Vietnamese banking system.

Hoang Thanh Lan