Deposit insurance - Shield to protect depositors' rights

In the financial and banking system, depositors' trust is always a key factor to maintain stability and development. To strengthen that trust, deposit insurance (DI) activities were born and increasingly asserted their important role worldwide and in Vietnam to protect the rights of depositors, while helping the banking system operate healthily and stably.

Mechanism to protect public trust

According to the International Association of Deposit Insurers (IADI), the core objective of deposit insurance is to protect depositors against the risk of insolvency of participating institutions. Deposit insurance participants are usually deposit mobilization units such as banks, people's credit funds or financial institutions. In many countries, the law requires these organizations to participate in deposit insurance and pay fees.

The Deposit Insurance of Vietnam branch in the South Central and Central Highlands regions disseminates deposit insurance policies.

The important difference of the deposit insurance organization is not to seek profit, but for the public interest, aiming at the stability and safety of the financial system. Therefore, the operations of the deposit insurance organization are often linked to the entire life cycle of the deposit insurance participating organization, from issuing deposit insurance certificates when starting to operate to collecting fees, checking and supervising during operation. In many countries, the deposit insurance organization is also given the authority to intervene early when detecting signs of weakness, to prevent the risk of collapse. In case of risks occurring and the credit institution becomes insolvent, the deposit insurance will use the Reserve Fund to pay insured deposits, protect the interests of depositors, and stabilize market sentiment.

By August 2025, there were 130 active deposit insurance organizations worldwide , of which 107 were IADI members - a number that clearly reflects the crucial role of this system. Notably, the proportion of deposit insurance organizations granted additional supervisory, intervention and resolution powers increased from 75% to 83% in the period 2014 - 2023, showing a trend of strengthening the role of deposit insurance in protecting depositors and stabilizing the banking system.

Vietnam Deposit Insurance - 26 years of strengthening depositor confidence

Vietnam Deposit Insurance was established in 1999 under Decision No. 218/1999/QD-TTg of the Prime Minister , with an initial charter capital of 1,000 billion VND. Since its inception, this organization has been identified as an important tool to protect the legitimate rights and interests of depositors, contributing to maintaining the stability and safety of the credit institution system.

The Deposit Insurance of Vietnam branch in the South Central and Central Highlands regions trains on special control of people's credit funds.

According to the Law on Deposit Insurance 2012, the Vietnam Deposit Insurance performs many important tasks such as granting and revoking certificates of participation in deposit insurance, calculating and collecting deposit insurance premiums, managing the operational reserve fund, inspecting the law compliance of deposit insurance participating organizations, paying insurance money to depositors when credit institutions become insolvent, or participating in asset liquidation. In addition, communication work on deposit insurance policies has also been promoted, helping people improve their understanding and feel secure when depositing money in the banking system. In particular, the Law on Credit Institutions 2024 has expanded the role of the Vietnam Deposit Insurance with many important tasks such as providing special loans to commercial banks, cooperative banks or people's credit funds; purchasing long-term bonds of credit institutions receiving compulsory transfers... These are powerful tools to handle weak credit institutions, thereby strengthening the safety of the banking system.

After nearly 26 years of operation, the Vietnam Deposit Insurance Corporation has successfully completed its assigned tasks. As of September 30, 2025, the total assets of the organization reached more than 139 trillion VND, of which the Operational Reserve Fund reached 132.8 trillion VND, an increase of 139 times compared to the initial charter capital. The Vietnam Deposit Insurance Corporation currently has more than 800 staff at the headquarters and 8 regional branches, who are well-trained and have a lot of practical experience, meeting the requirements of the task. These results create an important foundation for the organization to continue to affirm its role as a "safe shield" for depositors, while contributing to strengthening trust in the banking system in the context of an increasingly developing and deeply integrated economy .

HOANG DUNG

Source: https://baokhanhhoa.vn/kinh-te/tai-chinh-ngan-hang/202512/bao-hiem-tien-gui-la-chan-bao-ve-quyen-loi-nguoi-gui-tien-b953ca1/