Trang Chủ
Generally, the coverage limit of 125 million dongs is appropriate to the increase in the income of almost all depositors, especially the fast – growing middle class in Vietnam. Meanwhile, it is in accordance with the relatively high growth rate of total assets of credit institutions.
Dr. Le Xuan Nghia – Member of the National Advisory Council on Financial and Monetary Policies
The coverage limit of 125 million dongs fully meets IADI’s recommendations and the practical situation in Vietnam. It is a leap in the Deposit Insurance of Vietnam (DIV)'s operating mechanism, contributing to its effectiveness in operations and the ability to well perform its role of protecting depositors, becoming an important part of the national financial safety net and meeting international best practices.
Dr. Ha Huy Tuan – Former Vice Chairman of the National Financial Supervisory Commission
In the context that people’s income is increasing, I highly appreciate the meaning of the increased coverage limit to 125 million dongs to depositors’ rights and interests. Deposit insurance policy has been showing its significant role to the credit institution system.
Mr. Bui Xuan Chinh – Director of the State Bank of Vietnam’s Branch in Binh Thuan province
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According to the State Bank of Vietnam's statistics, as of the end of June 2021, the growth rate of residents' deposits is 2.94% (equivalent to 5.29 trillion dongs) compared to the end of 2020. It is the lowest figure since 2012 (the growth rate was 16% at the end of May 2012). Therefore, in my opinion, it is appropriate to adjust the coverage limit from 75 million dongs to 125 million dongs. The new coverage limit will bring various benefits, specifically: increasing the number of insured depositors and attracting more people to deposit at banks in the current downward trend in bank deposits, especially during the complicated and unpredictable developments of the Covid-19 pandemic. At the same time, the new coverage limit also contributes to improving the resilience of the banking systems, strengthening the confidence in banks and their reputation, attracting more people to deposit at banks and facilitating capital mobilization for economic development.< /o:p>
Assoc. Prof. Dr. Nguyen Thi Mui – Member of the National Advisory Council on Financial and Monetary Policies
The coverage limit needs to improve risk management ability of banks and best ensure the rights and interests of depositors while being in line with the DIV’s capacity. With regards to depositors, deposit insurance policy aims to protect the majority of depositors who have small amount of deposits. It can be said that the coverage limit of 125 million dongs per depositor per institution meets all of the above requirements, showing the new development of deposit insurance policy.
Dr. Vo Tri Thanh – Member of the National Advisory Council on Financial and Monetary Policies, President of the Institute for Brand and Competitiveness Strategy
The coverage limit must be limited to avoid moral hazard to both depositors and credit institutions. However, in my opinion, the coverage limit of 75 million dongs does not meet international practices. According to the IMF's recent research in 189 countries, the coverage limit in Vietnam is relatively small. ASEAN countries also put in place relatively high coverage limit after the Asian Financial Crisis in 1997-1998. From my perspective, increasing the coverage limit from 75 million dongs to 125 million dongs is appropriate and in accordance with practical situation.
Dr. Can Van Luc – Member of the National Advisory Council on Financial and Monetary Policies, Senior Advisor to the Chairman of the Board of Directors of the Joint stock Commercial Bank for Investment and Development of Vietnam (BIDV), Director of the BIDV's Training and Research Institute
Along with the development of the economy and the banking system, the DIV’s financial capacity is also strengthened. Besides, the continuous increase in GDP per capita results in a larger scale of deposits, in terms of both total deposits and the amount of deposits per depositor in the credit institution system. Therefore, the increase in the coverage limit from 75 million dong to 125 million dong meets the need of the majority of depositors.
Dr. Nguyen Minh Phong – Economic Expert
Regarding the size of deposits at credit institutions, many customers now have deposits with the amount of hundreds of millions dong, billions dong or even more. Therefore, the coverage limit of 75 million dongs is small compared to the general level of residential deposits, which may affect public awareness activities when dealing with issues in banking operations. In the current context that the economy is strongly affected by the Covid-19 pandemic, increasing the coverage limit to 125 million dongs helps strengthen depositors' confidence in credit institutions, thereby attracting more idle capital to the system. Hence, domestic savings for development investment will create a driving force for economic growth in Vietnam.
Assoc. Prof. Dr. Tran Thi Thanh Tu – Vice President of the Vietnam Japan University, Vietnam National University
The current coverage limit has reached closer to the general level of residential deposits. Therefore, we are no longer afraid to discuss about the coverage limit when disseminating deposit insurance policy to the public. We believe that the new coverage limit will open up positive signs in capital mobilization, contributing to the stable operations of the Hop Duc People's Credit Fund during the pandemic, thereby supporting people to overcome difficulties and stabilize their manufacturing and business activities.
Mr. Tran Khoi – Director of the Hop Duc People's Credit Fund, Hai Phong city
According to the approval of the Prime Minister, the coverage limit has been adjusted from 75 million dongs to 125 million dongs for all published deposits (including principal and interest ) of an individual at an educational institution in accordance with the Law on Deposit Insurance. This limit will raise people’s confidence and reduce their fear of depositing their hard-earned money at credit institutions.
Mr. Nguyen Huu Cuong – Chairman of the Board of Directors of the Phu Thu People's Credit Fund, Kinh Mon, Hai Duong
People in Ha Giang city are mainly small businessmen in various sectors with a fairly abundant income. According to statistics of our People's Credit Fund, deposit accounts with a balance of over 75 million dongs currently make up about 70% of the total ones. Thus, the coverage limit of 125 million dongs is appropriate and meets the needs of the majority of people. From the perspective of a credit institution, I highly appreciate the Government's decision during this period. The new limit greatly supports us in the fight against the pandemic, ensuring the safety and sound development of the Bao Tin People's Credit Fund in particular and the People's Credit Fund system in general.
Mr. Ninh Quoc Chinh – Director of the Bao Tin People's Credit Fund, Ha Giang city
Since its establishment, the DIV has fully reimbursed depositors in the event of the failure of People's Credit Funds. We firmly believe in deposit insurance policy. We heard that the Prime Minister just signed the decision to increase the coverage limit to 125 million dong, which made us more confident when depositing our hard-earned savings at People's Credit Funds.
Ms. Nguyen Thi Phuong – a depositor in Hung Yen
Being a retiree, I have deposited all of my money at the People's Credit Fund. From my point of view, the Government listened and satisfied our needs and expectations through this coverage limit of 125 million dongs.
Mr. Hoang Van Manh – a depositor in Vinh Phuc
