Trang Chủ
Under the leadership of Deputy National Assembly Chairwoman Nguyen The Kim Ngan, The National Assembly Standing Committee discussed to give opinions on the project of the Law on Deposit Insurance on March 21, 2012. National Assembly Chairman also took part in the session and made guidelines speech.
6 important issues in the project of Law on Deposit Insurance were put into discussion including: objectives to be insured, the organizational structure of Deposit Insurance, the operating model and the supervisory function of the Deposit Insurance System, type of insured deposits; premiums as well as the coverage.
The National Assembly Standing Committee agreed with the regulations in the draft law, which only insured individual deposits.
According to Ms Kim Ngan regarding the organizational structure of the Deposit Insurance System, there were 2 different options: First, total compliance with the Draft Law, in which, the Deposit Insurance System would be created by the Prime Minister and subordinated to the management of the State Bank of Vietnam (SBV). The second opinion suggested that the creation and operation of Deposit Insurance would be directly under the State management of the SBV. However, after discussing, the majority the National Assembly Standing Committee agreed to the proposal that the Prime Minister created the Deposit Insurance System and the State Bank would manage its activities. According to the Economic Committee, there were 24 delegations, which agreed to the first option, and only six delegations coincided with the second option on discussing to give opinions for the draft law.
Talking in the discussion, National Assembly Chairman Nguyen Sinh Hung said that Deposit Insurance is not a credit banking institution. As a financial institution that protects bank deposits, it is reasonable that the Government in association with the Ministry of Finance (MOF) has set up Deposit Insurance. Its typical activities are insurance – financial operations. In case of credit banking scheme, the State Bank can take direct control of its operating sphere. However, on putting a query against why the Prime Minister has entrusted the State Bank with the management of Deposit Insurance after establishing it – According to National Assembly Chairman’s opinion – it is because Deposit Insurance attends to credit operations. Moreover, once the State Bank has taken control of Deposit Insurance, it is necessary for the State to have a specific assignation in concordance with the MOF and related organizations.
On emphasizing that the Economic Committee tends to maintain the actual model of Deposit Insurance, Deputy Head of the Economic Committee Nguyen Duc Kien made the following arguments: The last important target of Deposit Insurance is to strengthen people’s confidence and protect depositors. In accordance with current regulations, the Government sets up the Deposit Insurance System. However, should the SBV create the Deposit Insurance System as stipulated in the Law on Deposit Insurance, there would be incremental costs in the administrative management activities, and we would also have to face many difficulties in maintaining public confidence” – said Kien.
The National Assembly Standing Committee agreed with the Deposit Insurance System to adopt the “paybox model” with broader powers as regulated in the draft Law. Moreover, Deposit Insurance would undertake the function of off-site monitoring and participate in the liquidation and resolution of insured organizations’ assets.
In response to some recommendations to insure deposits in kind of foreign currencies, the National Assembly Standing Committee pointed out that there should only be insurance policy for Vietnamese dong in order to stabilize the value of domestic currency. However, Deputy Chairwoman Kim Ngan also asked the editing department to take over and clarify the State’s point of view is to protect people’s legal right to possess foreign currencies.
Aiming at ensuring the flexibility according to the development of Deposit Insurance’s activities, the National Assembly Standing Committee made a conclusion regarding the principle and criteria on premiums as stipulated in the Law on Deposit Insurance that the SBV would determine the specific level of premiums basing on opinions of the MOF and other related organizations. The Draft Law should also empower the Prime Minister to define the level of coverage for each period on basis of the SBV’s suggestion.
Head of the Economic Committee Nguyen Van Giau said that this organization would receive every guideline from the National Assembly Standing Committee in order to continue making amendments on the draft law on Deposit Insurance.
The third session of the 13th National Assembly will open on May 21, 2012 expecting the approval of the Law on Deposit Insurance as planned.
