Trang Chủ
Apart from active factors, the existence of a weak financial and banking system or bank failures shall negatively influence on economic development and social security. The Government is to play the key role in making monetary and financial policies to create an enabling environment for businesses. Besides, these policies should both constrain adverse impacts and ensure the safety of the national financial system. Via financial policies and tools, the governance role of the Government is reflected to ensure transparency, equity, safety and favor for businesses and citizens (including consumers, depositors and individual investors). In this light, many countries (106) in the world have established the deposit insurance systems to protect depositors and to enhance public confidence in the national financial and banking systems.
In a market economy, deposit insurance has represented an efficient tool of the Government in the market oriented economy. Firstly, it is an explicit insurance scheme of the government to depositors to limit the use of the state budget (public money), instead of an implicit one that is mostly implemented with public money. Secondly, the existence of the deposit insurance system shall create equitable competition among financial institutions for fund mobilization. Thirdly, the deposit insurer, for millions of depositors, shall conduct supervision and early warnings against insured institutions for avoiding risks of failures or utilizing other appropriate financial solutions. Fourthly, it is to assure the equity for all insured institutions as they shall have to pay premium compulsorily (flat rate or risk based rate) to the deposit insurance fund to improve the financial capacity of the insurers for failure resolution or insurance payment. And fifthly, it is for the sake of the national financial system, economic development and social security.
Currently, the term “national financial safety net” has become more popular in many countries and economic forums. The deposit insurer standing as a component in the net, in coordination with other players, operates for the common objectives for the sake of the safety of the system and the implementation of international commitments.
International integration of banking and financial institutions should be facilitated by the integration and harmony of: legal frameworks, financial and accounting standards, products and services and distribution systems, risk governance structures and key prudential indicators, supervision systems etc. In term of integration, the integration process shall be reflected by the scope and speed of domestic and international capital inflows and outflows, commitments to open the market and penetration capability into domestic and international markets of Vietnamese businesses.
Deposit Insurance of Vietnam (DIV) is established and developed following the best international practices and standards on the basis of modernized IT system, facilitating the application of international standards on prudential, which intensifies the international integration of the banking and financial system in general and DIV in particular.
