Deposit Insurance of Vietnam boosts premium collection

14:27 | 28/09/2018 Finance - Banking

(VEN) - In the first six months of this year, premiums collected by Deposit Insurance of Vietnam (DIV) were 16 percent higher than in the same period last year.

deposit insurance of vietnam boosts premium collection

Deposit safety

The state-owned agency, created in 2013, aims to protect the rights and legitimate interests of depositors and contribute to national financial health and growth of the banking system. In the first half of 2018, DIV provided deposit insurance for 1,282 institutions, including 94 banks and foreign bank branches, one cooperative bank, 1,183 people’s credit funds and four microfinance institutions; issued eight new deposit insurance certificates; re-issued eight certificates and 96 copies of certificates for insured credit institutions; revoked one certificate; and updated information on 129 certificates. In so doing, DIV met the demand of credit institutions and strengthened public trust in the national banking system.

DIV has dealt with problems arising in the process of calculating and collecting deposit insurance premiums, creating favorable conditions for insured institutions to pay their premiums. To enhance the effectiveness of its supervision over all insured institutions, DIV has disseminated its regulation on the collection and reporting of insured deposit data, which took effect on July 1, among all insured institutions and provided more than 90 percent of them with training on implementation.

DIV has intensified the spread of public information about deposit insurance policy, as well as training activities. This year, DIV and the State Bank of Vietnam successfully hosted the 16th Annual Meeting and International Conference of the Asia Pacific Regional Committee (APRC 2018) under the theme “Small and Medium-sized Insured Institutions - What We Can Do for Them”. The event attracted more than 180 participants, including nearly 70 representatives of 21 countries and territories, and 54 representatives of Vietnamese ministries, departments and sectors, credit institutions and media organizations.

Healthy banking system

DIV is currently drafting a strategy on deposit insurance development until 2025, with an orientation towards 2030. The State Bank of Vietnam will submit the document to the prime minister for approval. DIV is also building a specific office culture and increasing efforts to develop human resources and strengthen technical staff.

DIV is looking towards international standards to better protect depositor interests and contribute to the safe operations of the banking system. It is implementing 15 groups of tasks designated for the second half of 2018, focusing on specific technical operations.

DIV has also focused on improving management to ensure the transparency of its operations. It is preparing for a meeting to review the implementation of the Law on Deposit Insurance over the past five years (2013-2017), taking the initiative in proposing amendments to this law to make it compliant with international practices. DIV is promoting the dissemination of the deposit insurance policy among the public, especially in rural and remote areas.

Ngoc Anh