Results of deposit insurance operation in the first half of year 2022 and orientations in the coming time

16:14-22/07/2022

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

Recognizable results of deposit insurance operation during the first’s six months of year 2022

Accordingly, there are currently 1283 institutions participating in the deposit insurance system, including 97 banks and foreign bank branches, 1181 people's credit funds, 1 cooperative bank and 4 microfinance institutions. During the first 6 months of 2022, DIV issued 113 copies and re-issued 9 certificates of deposit insurance participation at the request of participating institutions, ensuring compliance with the provisions of the law.

DIV is developing, amending and supplementing a number of contents of the Regulation on issuance and revocation of the Certificate of deposit insurance participation (Decision 408/QD-BHTG dated June 28, 2016) to suit the actual situation and the guiding documents of the State Bank of Vietnam (SBV) on the operation network of the credit institutions.

In the first 6 months of the year, DIV carried out periodical examination at 153/280 organizations participating in deposit insurance system, reaching 54.64% of the plan; examined 21/53 People's Credit Funds under the direction of the Governor of the SBV in 2022; in which concentrating all resources, promptly offering solutions to improve the efficiency of examination activities, focusing on the direction of the Governor of the SBV. DIV also directs units throughout the system to carry out continuous and regular supervision of 100% of deposit insurance participating institutions in their respective management areas, problematic PCFs to promptly propose to the SBV.

In addition, the DIV actively appointed staff to join the Special Supervisory Board for a number of weak PCFs, and coordinated with the provincial SBV branches to propose solutions to ensure the rights and interests of the depositors to protect the legitimate interests of depositors, contributing to maintaining security and order in localities.

In order to ensure financial resources to protect the deposits of more than 89 million depositors at 1283 deposit insurance participating institutions, as well as to fulfill the target of deposit insurance premium collection assigned by the SBV, in the first 6 months of 2022, DIV collected the premium, reaching 51% of the whole year plan; exempted the premiums according to regulations for 33 organizations under special control.

Manage and use temporarily idle fund to ensure the safety and capital development. Revenue from investment activities of temporarily idle fund in 2022 is expected to reach 98,83% of the plan assigned by the SBV. Total operational fund of DIV as of June 30, 2022 reached VND 88,8 trillion, increasing 8,7% over the same period in 2021. Professional reserve fund reached VND 82,65 trillion, going up 17.9 % over the same period in 2021.

With the goal of continuing to promote the dissemination of the deposit insurance policy to public, DIV has directed and oriented the regional branches to actively and flexibly implement the 2022 Communication Plan in line with the situation of the Covid-19 epidemic and operations in the management area; coordinate well with the media, press, the Department of Communications, SBV as well as the press management agencies to disseminate the deposit insurance policy and raise the public awareness and confidence from people and authorities for deposit insurance activities, contributing to the success of the banking industry in general and of DIV in particular.

DIV also strengthened the professional training, international cooperation activities; well performed the supporting activities, logistics, financial accounting management according to regulations.

Regarding policy activities, in the first 6 months of the year, the DIV reached a technical agreement with functional units of the SBV on proposed contents such as adding some rights and obligations of deposit insurance participating organizations and deposit insurers; operational fund; operational revenue; investment portfolio; issue and revoke 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 policy 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 fees; Improve the financial and operational capacity of the deposit insurer; Supplementing the rights and obligations of the DIV; Completing the legal regulations for the Deposit Insurance of Vietnam to participate more deeply in the process of structuring weak credit institutions in Vietnam; Completing regulations on the time when the payout obligation arises timely and effectively. These are the main key tasks in the orientation and implementation of the important tasks of the DIV.

Orientations for the second half of the year 2022

Mr. Pham Bao Lam, Chairman of the Board of Directors of DIV, affirmed: The results achieved in the first 6 months of the year are positive and remarkable. However, the DIV needs to continue to uphold the sense of responsibility, promptly and comprehensively deploy activities closely to the actual situation to achieve the best results. Hence, striving to uphold the principle of protecting the legitimate rights and interests of depositors, contributing to maintaining the stability of deposit insurance participating institutions and the safe and healthy development of the banking system.

Specifically, the DIV needs to closely coordinate with relevant organizations to complete the submission to the competent authorities for approval of the deposit insurance development strategy to 2025, with orientation to 2030. Actively develop an action plan to implement immediately after the Prime Minister's approval of the Strategy.

Regarding the amendment and supplementation of a number of articles of the Law on Deposit Insurance, the DIV needs to perform the tasks as planned by the Drafting Committee to amend and supplement a number of articles of the Law on Deposit Insurance 2022 under Decision No.127/QD-NHNN dated 28 January, 2022, specifically: Continue to coordinate with relevant units of the SBV in reviewing, researching and proposing the 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, and 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 be submitted to the Government before September 30, 2022).

Besides, it is necessary to focus resources and flexibly implement the 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 pursuant to the examination results according to the required content and time, and send  to the SBV before December 30, 2022.

The calculation and collection of deposit insurance premiums comply with relevant regulations, accomplishing the goal of the plan assigned by the SBV. Make insurance payments when there is an obligation arises.

Actively prepare resources, participate in the process of restructuring weak credit institutions under the direction of the SBV, strengthen the role of the DIV in participating in supporting and handling weak people's credit funds that are placed in 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, and fulfill the targets of the SBV's business plan in 2022.

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

Communication Department