On October 20, 2021, the Prime Minister promulgated Decision No. 32/2021/QD-TTg on deposit insurance coverage limit, replacing Decision No. 21/2017/QD-TTg dated June 15, 2017. Accordingly, the maximum amount paid for all insured deposits of a depositor at a credit institution in accordance with the Law on Deposit Insurance (including principal and interest) is 125 million VND. This decision takes effect from December 12, 2021.
The increase of the coverage limit from 75 million VND (in Decision No. 21/2017/QD-TTg) to 125 million VND is an important and positive policy of the Government to improve the benefits for individual depositors at credit institutions.
The purpose of increasing coverage limit this time is to effectively fulfill the public policy objective, not only to better protect the legitimate rights and interests of depositors, especially small-scale ones, but also to contribute to maintaining the stability of the credit institution system, ensuring the safe and healthy development of banking operation.
It is raised on the basis of affirming the suitability with the current financial capacity of Deposit Insurance of Vietnam and in accordance with the macroeconomic conditions, meeting the national economy and social development goals in the coming time.
Besides, raising coverage limit will also increase the ratio of fully insured depositors to total insured depositors from 87% to 91%, which is in line with international practices, meeting the recommendations by the International Association of Deposit Insurers (the ratio of fully insured depositors to total insured depositors should be between 90% and 95%).