Trang Chủ
Around this issue, we had a conversation with Dr. Pham Minh Tu - Deputy Director of Banking Strategy Institute.
Reporter: Could you briefly tell us about the Banking industry development strategy and the tasks for DIV?
Dr. Pham Minh Tu: In 2018, the Prime Minister issued the "Strategy to develop Vietnam's banking industry to 2025, with orientation to 2030" (Banking industry development strategy).< /p>
The banking industry development strategy is built on the basis of deeply assessing the current situation of Vietnam's banking industry, identifying opportunities and challenges in the socio-economic context at home and abroad, analyzing trends for future development and refer to the experiences of countries around the world. The strategy covers the objectives, orientations, tasks and solutions for the development of each component part of the banking industry, including: the State Bank (SBV), credit institutions, and other special financial institutions operating in the banking sector (Deposit Insurance of Vietnam , Bank for Social Policies, Vietnam Asset Management Company), financial and monetary infrastructure to ensure the comprehensive, unified and synchronous development of the sector in the implementation process.
Defining DIV as an important component, the 8th task in the Banking industry development strategy has stated that the model of DIV is a model of a one-member limited liability company with 100% of the charter capital held by the State. The State Bank of Vietnam is the agency representing the owners and sets the task of formulating and implementing the Deposit Insurance Development Strategy to fulfill the role of a deposit insurer. This content was once again defined in the Action Program to implement the Banking industry development strategy issued together with the Decision No.34/QD-NHNN dated January 7, 2019 of the Governor of the SBV.
Reporter: How do you evaluate the contributions of the DIV over the years?
Dr. Pham Minh Tu: After more than 23 years of operation, the DIV has always strived to fulfill its mission of organizing the implementation of policies to protect the interests of depositors. The DIV has built a network of head office in Hanoi and 8 national branches.
The trend of economic integration brings opportunities but at the same time creates challenges and risks for the system of credit institutions in Vietnam. Develop, competition among credit institutions in keeping and occupying market share of capital mobilization, lending and development of new financial products is increasingly fierce. Recently, along with the trend of applying products developed on high technology platforms, a series of new products and services have been introduced to the market, posing many challenges to the task of protecting depositors of DIV. In that context, the deposit insurance is becoming more and more evident as an important channel for the Government to monitor risks, contributing to ensuring the safety of credit institutions' operations and national financial security. The DIV has made continuous efforts to fulfill the assigned mission, shown in some main results as follows:
Always ensure the interests of depositors to attract maximum savings from the population, serve economic development, and indirectly protect depositors through other professional activities such as examination and periodic monitoring of the institutions participating in the deposit insurance. This is the basis for the DIV to enhance its role and position in the national financial safety net.
Actively perform new tasks in the process of participating in special control of credit institutions. structured, the DIV has done research, developed and perfected the system of administrative and operating documents on special control in accordance with the Law amending and supplementing the Law on Credit Institutions in 2017. In addition, the DIV also appointed staff to join the Special Control Committee at the deposit insurance participating organizations; building a reserve capital level in order to be proactive in financial resources, ready to lend, especially to specially controlled credit institutions eligible for loans; supervision, analysis, assessment and safety warning for the people's credit fund system.
Promoting the deposit insurance policy through various forms and media, especially targeting small depositors to help them improve their financial understanding to wisely choose and deposit at credit institutions.< /o:p>
Timely proposes solutions to improve the efficiency of examination activities, perform periodic examination of deposit insurance participating institutions and people's credit funds in the context of being affected by the Covid-19 pandemic. At the same time, the DIV also conducts regular monitoring of all deposit insurance participating organizations, connects, provides and exchanges information with examination activities, promptly advises, proposes and recommends to the SBV on arising problems that may cause risks and unsafety of the credit institution system.
With the above results, the DIV has become an important supporting organization for credit institutions in consolidating, maintaining and increasing the confidence of the whole society in expanding capital mobilization activities; become a monitoring and advisory channel for the SBV to ensure safe and healthy operation of credit institutions.
However, the operation of the deposit insurance currently faces a number of difficulties and obstacles related to the legal basis for a number of assigned tasks that have not yet been legislated (such as special lending, participating in the development of bankruptcy plans of specially controlled credit institutions, purchase of long-term bonds of credit institutions under the decision of the SBV), insurance coverage limit, issuance of certificates of participation deposit insurance, on-site examination activities .
Reporter: How do you evaluate the Development strategy of deposit insurance to 2025, with orientation to 2030?
Dr. Pham Minh Tu: The international and domestic economic context many poses and challenges for Vietnam's banking industry in general and DIV in particular. In particular, the development trend of the world's deposit insurances requires that the Vietnamese deposit insurance needs to determine future directions to better meet the Core Principles for effective deposit insurance systems of the International Association of Deposit Insurers. In addition to that requirement, the formulation of the deposit insurance development strategy is also the rights and obligations of the deposit insurance specified in Clause 1, Article 13 of the Law on Deposit Insurance.< /p>
Adhering to the Banking Industry Development Strategy, the Deposit insurance development strategy was developed with the overall objective of: (i) Protecting the legitimate rights and interests of depositors, actively contributing to maintaining the stability of the system of credit institutions and foreign bank branches, ensuring the safe and healthy development of banking activities; (ii) Improving quality and efficiency in deposit insurance activities; early detection and warning of potential risks to insured institutions; participate in effective restructuring of weak deposit insurance organizations; calculating and collecting deposit insurance premiums, capital and investment management; promoting the policy of deposit insurance and payment of deposit insurance in a manner consistent with international practices and the provisions of Vietnamese law; and (iii) Strengthening the financial capacity of the deposit insurance, perfecting the appropriate organizational structure model to further strengthen the operational capacity, to better meet the role of the deposit insurance.
The specific objectives and tasks and solutions in the Deposit insurance development strategy are consistent with the tasks stated in the “Project on restructuring the system of credit institutions associated with non-performing loan settlement in the 2021-2025 period” promulgated by the Prime Minister together with Decision No.689/QD-TTg dated June 8, 2022 and the main contents of the Law amending and supplementing the Law on Deposit Insurance No.06/2012/QH13 approved by the National Assembly on June 18, 2012. Therefore, the deposit insurance development strategy will help the deposit insurance to develop comprehensively, bring into play its internal resources, take advantage of external opportunities to overcome challenges and fulfill its mission of protecting the legitimate rights and interests of depositors; higher standards in ensuring the safety and soundness of the operations of the system of credit institutions which are deeply integrated in finance in the region and the world, contributing to the stability of the macro-economy and sustainable growth.< /o:p>
