Safelyprotecting nearly 6500 trillion dongs of insured deposits

16:26-25/01/2022

The Deposit Insurance of Vietnam (the DIV) has been showing its role of being an important instrument in creating confidence as well as protecting legitimate rights and benefits of depositors at insured institutions.  Over the past years, with contributions of the DIV, the system of credit institutions (CIs) has always operated stably and safely.

Till now, the DIV has been protecting nearly 6500 trillion dongs of deposits of depositors at over 1,280 insured institutions in the whole Vietnamese banking system. Up to November 30, 2021, the total assets of the DIV achieved more than 82 trillion dongs, of which the Operational Reserve Fund gained nearly 76 trillion dongs. This is a resource for the DIV to be ready for reimbursement to depositors when necessary and to participate in restructuring the system of CIs.

In 2021, the DIV has made continuous efforts, proactively set up options, plans to undertake all aspects of operations in a synchronous and effective way.

For the first 11 months of 2021, the DIV has granted 01 new Certificate of participation in deposit insurance, granted 304 copies of Certificate of participation in deposit insurance and re-granted 16 Certificates of participation in deposit insurance as requested by insured institutions in accordance with legal regulations on granting and revoking Certificates of participation in deposit insurance.

Besides granting and revoking Certificates of participation in deposit insurance within the coverage limit of 75 million dongs, the DIV has soon built the Plan of granting Certificates of participation in deposit insurance within the new coverage limit right after the Prime Minister signed the Decision No 32/2021/QD-TTg dated October 20, 2021 regulating the coverage limit of 125 million dongs. Up to November 30, 2021, the DIV re-granted Certificates of participation in deposit insurance within the new coverage limit to nearly 920 insured institutions, realizing nearly 72% of the Plan; granted nearly 2,400 copies of Certificates of participation in deposit insurance to over 140 insured institutions, equivalent to nearly 20% of copies of Certificates in the whole DIV’s system. Regarding supervision, the DIV has provided direction, guidance to units within the whole system to continue improving quality of supervision over insured institutions, their branches and transaction offices under its management; took use of data effectively from the State Bank of Vietnam (the SBV); timely recommended to the SBV so that the DIV could access reporting data of micro-finance institutions; regularly urged and reminded insured institutions of keeping sending reporting data of insured deposits as regulated to timely recommend to the SBV about problems which can cause risks, unsafety to the CI system through periodic supervision reports and in-depth supervision reports over problem PCFs.

In the context of complicated developments of Covid-19, many provinces across the country must implement social-distancing, so examination over insured institutions of the DIV has faced not a few difficulties. However, the DIV has timely adjusted its plan of regular examination in accordance with developments of the pandemic in each area to both ensure safety in pandemic prevention and protection, and ensure examination effectiveness. The DIV has also been proactive in carrying out examination over PCFs as directed by the Governor of the SBV in 2021.

The DIV has monitored, participated in resolving and assigning staff to participate in PCFs under special control. Besides, right after the SBV promulgated the Circular No 08/2021/TT-NHNN on special lending to CIs under special control (replacing the Circular No 01/2018/TT-NHNN), the DIV approved supplementation to the Program of promulgation of administrative documents in 2021 of the DIV “Regulation on special lending of the DIV” to enhance its role in participation in special control and to agree internally in terms of procedures, ways of implementation, and at the same time proactively set up provision level for special lending in 2021.

To raise confidence of the public in the banking system, as well as affirm its important role in ensuring safety, stability of the PCF system, the DIV has coordinated in organizing dissemination of the deposit insurance policies at 65 annual member conferences of PCFs. Hundreds of articles have been published in the mass media, a lot of talks, interviews have been successfully made, deposit insurance bulletins have been published regularly with a lot of articles of reputable experts. Together with speeding up dissemination of policies in the newspapers, magazines inside and outside the industry, in 2021, some communication channels with large audiences which have been exploited by the DIV like VTV1, VTV2, traffic VOV, etc., which have had spread policies further.

Besides operational activities, research works served for policy-making recommendations have been regarded as a key task by the DIV with some remarkable results like: the Plan of deposit insurance coverage limit was approved by the Prime Minister through the promulgation of the Decision No. 32/2021/QD-TTg dated October 20, 2021, regulating on the deposit insurance coverage limit of 125 million dongs, which came into effect since December 12, 2021; coordinating with the Banking Supervision and Inspection Agency in fulfilling the Draft of the Deposit Insurance development strategy up to 2025, vision up to 2030 and reporting to the SBV to soon submit to the Prime Minister for approval; signing Regulation on information sharing with over 30 SBV branches in provinces, cities as directed by the Governor of the SBV; successfully defensing the research project at ministerial-level titled “The role of the DIV in supporting sustainable development of the PCF system in Vietnam up to 2025”.

Especially, the DIV reported to the SBV on proposals of amendments, supplementation of the Deposit Insurance Law and on impact evaluation of such proposals. Accordingly, proposals have focused on improving the DIV’s roles to protect legitimate rights and interests of depositors better, participate more effectively in restructuring weak CIs. Besides, the DIV assigned its staff to participate in the Drafting Board of the Law amending and supplementing some articles of the Deposit Insurance Law as requested by the SBV; and at the same time established the DIV’s Drafting Board who participated in setting up the Law amending and supplementing some articles of the Deposit Insurance Law and Assisting team for the Drafting Board to direct units in the whole system in the process of proposing amendment, supplementation of the Deposit Insurance Law; promulgated the plan of task implementation of the DIV in participating in the Drafting Board of the Law amending and supplementing some articles of the Deposit Insurance Law.

Research and International Cooperation Department