Video conference on implementation of Prime Minister’s Directive No. 06

09:16-07/06/2019

On the morning of April 12, 2019 the Deposit Insurance of Vietnam (DIV) organized a video conference on the implementation of the Prime Minister’s Directive No. 06 and the Scheme on strengthening the examination on insured institutions. The conference was attended by Mr. Nguyen Quang Huy - Chairman of the Broad of Directors of DIV and members of the Board of Directors; Mr. Dao Quoc Tinh - General Director and members of the Broad of Management; representatives of Controllers, regional branches’ directors, and Examination and Supervision departments at the headquarters and 8 regional branches.

The Prime Minister’s Directive No. 06/CT-TTg dated March 12, 2019 aims to enhance measures for ensuring operational safety, maintaining the stability of the People's Credit Funds system (PCFs), thereby,  strengthening financial condition and operational capacity of credit institutions (CIs). Earlier, the National Assembly, the Prime Minister, and the Governor of the State Bank of Vietnam (SBV) had issued a series of guiding documents to introduce more drastic measures in order to accelerate the progress of handling bad debts and restructuring CIs as well as rectify, strengthen the prevention of and protection against law violations in the CI system, especially the PCFs system. These included the Scheme on restructuring credit institutions associated with handling bad debts in the period of 2016 - 2020" issued together with Decision No. 1058/QD-TTg dated July 19, 2017; the Law on amending and supplementing a number of articles of Law on Credit Institutions; the Scheme on strengthening and developing the PCFs system by 2020 with orientations to 2030” ; the SBV Governor’s Directive No. 06/CT-NHNN dated October 2, 2018 on rectifying, strengthening the prevention of and protection against law violations in order to ensure security, operational safety in the CI system” .

 In order to effectively implement the Directive No. 06, the Management Board of DIV directed and assigned specific tasks to each department and division. Accordingly, Supervision Department, Examination Department, Participation in Special Control and Asset Recovery Department, Finance and Accounting Department and Legal Affairs Department were assigned to prepare reports on the following contents: Enhancing the role and coordination of DIV in handling and participating in supporting weak PCFs placed under special control; Promoting and strengthening the role of supervising, analyzing and evaluating safety and providing safety warning for the PCFs system, especially the safety of deposits and loans of the PCFs through the current tasks and operations of DIV; Strengthening the role of DIV in supporting and coordinating with the SBV in examination and supervision over PCFs; The surplus of deposit insurance premiums… As for examination, Examination Department was assigned to be the focal point in developing the Scheme on examination in order to set short and long term goals and groups of solutions. It aims to effectively strengthen the DIV's examination in the following years as well as proposes an additional Plan for examination schedule in 2019.

At the Conference, the Directors of the mentioned departments reported the assigned studies and proposed solutions to effectively implement the assigned tasks. The branches agreed with the general policies and gave some comments on the Scheme on examination.

Speaking at the conference, Mr. Dao Quoc Tinh - General Director of DIV affirmed that strengthening solutions to ensure operational safety, maintain the stability of the PCFs system is an extremely important task of DIV in particular and the banking system in general. The General Director gave some advice to improve DIV’s examination. Besides, examination officers, especially the heads of examination teams must be well-trained, studious to live up to the task. Mr. Tinh also stressed that  examination would be given priority in terms of human resources, training for the heads of the examination teams, actively participating in PCFs special control as well as effectively coordinating with and supporting SBV’s examination on PCFs  in accordance with the Directive No. 06.

 Concluding the conference, DIV Chairman - Mr. Nguyen Quang Huy expressed the determination of the Board of Directors in directing the implementation of the Directive No. 06. He also requested the formulation of a detailed and specific plan on implementing the Directive No. 06 together with relevant proposals and recommendations to report to the State Bank. In addition, it is necessary to finalize the Scheme on "Improving the effectiveness of DIV's on-site examination  in order to protect the legitimate rights and interests of depositors" soon and submit it to the Board of Directors for approval. This Scheme will introduce some specific solutions to improve the examination effectiveness, which can be put in practice in 2019 and subsequent years.

Communication Department