Efforts to well implement deposit insurance policy

15:47-12/08/2022

Deposit Insurance of Vietnam (DIV) has proactively implemented synchronous contents according to the program and working plan with positive and remarkable results, serving as a premise for a successful and comprehensive implementation of goals and tasks set out in 2022.

Remarkable results in the first 6 months of the year         

In the first 6 months of the year, DIV has overcome difficulties and strived to well implement deposit insurance activities. Accordingly, the DIV has reached a technical agreement with the functional units of the State Bank of Vietnam (SBV) on the proposed contents such as supplementing some rights and obligations of the deposit insurance participating organizations and the deposit insurer; operational capital;  revenue; investment portfolio; issuing and revoking the Certificate of participation in deposit insurance; insured deposits, uninsured deposits; time limit for first-time complaint settlement..., and at the same time give specific opinions on 5 proposed contents in the proposal to build the Law amending and supplementing a number of articles of the Law on Deposit Insurance such as: Completing regulations on deposit insurance premium; Improve the financial and operational capacity of the deposit insurer; Supplementing the rights and obligations of the DIV; Completing the legal regulations for the DIV to participate more deeply in the process of restructuring weak credit institutions; Completing regulations of the time when the insurance payment obligation arises to ensure timely and effective payout. This is the main key task in the orientation and implementation of the important tasks of the DIV.

As of June 30, 2022, the total capital of the DIV has reached more than 88.8 trillion VND, an increase of 8,7% over the same period in 2021. The professional reserve fund is 82,6 trillion VND.  With such financial resources, the DIV can effectively participate in the process of restructuring weak credit institutions and at the same time ensure the interests of depositors. DIV is protecting more than 89 million depositors with insured deposits of nearly 7 million billion VND at 1283 participating institutions.

 By the end of quarter II, the total temporarily idle capital of DIV has reached over 86,7 trillion VND, an increase of 8,7% compared to December 31, 2021. Specifically, the total actual investment in the first 6 months of 2022 is over 7 trillion dong, reaching 54,7% of the amount of temporarily idle capital investment in 2022 approved by the SBV.

In the first 6 months of 2022, DIV actively developed a plan for payment of deposit insurance and implementation when the payment obligation arises; exempting deposit insurance premiums for deposit insurance participating organizations that are specially controlled  according to regulations.

The DIV has also completed the signing of the Coordination regulations with 55/57 SBV provincial branches that have People's Credit Funds in the operating area, reaching 96,5% of the set target. Currently, the DIV is actively promoting cooperation so that both sides can agree on the contents and sign the remaining regulations with 02 of the SBV provincial branches.

The examination was also carried out early, preparing all resources, promptly offering solutions to improve operational efficiency. Accordingly, in the first 6 months of the year, DIV has carried out periodical examination on 153/280 institutions participating in deposit insurance, reaching 54,6% of the plan; examination on 21/53 People's credit funds under the direction of the SBV Governor in 2022, reaching 39,6% of the plan.

Regular supervision has been strengthened for 100% of deposit insurance participating organizations in the area under each branch’s management. It helps connect, provide and exchange information with examination activities, promptly advise, propose and recommend to the SBV on arising problems, which may cause risks and unsafety for the credit institution system.

In addition, the DIV also actively provides comments on restructuring plans and resolution plans for People's Credit Funds at the request of the SBV; strengthens professional training for staff on lending, especially for credit institutions under special control; promptly studies and develops administrative documents to be uniformly implemented in the process of participating in special control such as: Guidelines for the implementation of the Regulation on participation in the special control process for organizations participating in the deposit insurance and the Regulation on special loans for credit institutions under special control.

Communication activities are also concerned, whereby, the DIV has effectively organized a series of activities to disseminate the deposit insurance policy according to the approved plan, promptly providing information on monetary policy and banking activities and advice for depositors.

Continue to deploy activities promptly and comprehensively according to the actual situation

The results achieved in the first 6 months of the year are positive and very remarkable. However, it is forecasted that in the last 6 months of 2022, the world economic and political situation is still complicated, the operation of the banking industry in general and of DIV in particular will face many difficulties and challenges. It is necessary to continue to uphold the sense of responsibility, to deploy activities promptly and comprehensively according to the actual situation to achieve the highest results, in which focusing on key tasks and implementation solutions.

Specifically, the DIV said that they will closely coordinate with relevant units to soon complete the submission to the competent authorities for approval of the deposit insurance development strategy to 2025, with orientation to 2030. Actively develop the action program and implement immediately after the Prime Minister's approval.

Regarding the amendment and supplementation of a number of articles of the Law on Deposit Insurance, the DIV performs the tasks as planned by the Drafting Committee to amend and supplement a number of articles of the Law on Deposit Insurance 2022 in Decision No.127/QD-NHNN dated January 28, 2022, specifically: Continue to coordinate with relevant units of the SBV in reviewing, researching and proposing amendments and supplements to a number of articles of the Law on Deposit Insurance following the orientation of the SBV; Develop and complete the application for the development of the Law on Deposit Insurance, report it to the Governor and the SBV's leaders before sending it to the Ministry of Justice for appraisal and submission to the Government (expected to submit to the Government before September 30, 2022).

Along with that, it is necessary to focus resources, flexibly implement examination plans, ensure 100% completion of the periodical examination plan and under the direction of the Governor of the SBV in 2022. Complete the synthesis of reports of examination results according to the required content and time, and send it to the SBV before December 30, 2022.

The calculation and collection of deposit insurance fees comply with regulations, accomplishing the goal of collecting deposit insurance fees according to the plan assigned by the SBV. Make insurance payments when there is an obligation to payout.

Actively prepare resources and participate in the restructuring process of weak credit institutions under the direction of the SBV, strengthen the role of the DIV in  supporting and handling weak people's credit funds that have been put under special control. Continue to strengthen the organizational apparatus, professional processes, improve the quality of human resources of the DIV to be ready to participate in the management and administration of weak credit institutions when required.

In addition, the management and investment of temporarily idle capital in the last 6 months of 2022 must also comply with the provisions of the law, ensure safety and efficiency, fulfill the targets of the SBV's business plan in 2022.

Continue to effectively implement a series of activities to disseminate the deposit insurance policy in 2022 according to the approved plan, promote support for the process of proposing amendments and supplements to a number of articles of the Law on Deposit Insurance. Implement the approved plan on surveying and assessing depositors' awareness level of deposit insurance policy.

Communication Department