Perfecting the legal corridor to protect depositors

View of the meeting. *Photo: media.quochoi.vn*

Presenting the Summary Report of the draft Law on Deposit Insurance (amended), Governor of the State Bank of Vietnam Nguyen Thi Hong affirmed that after 12 years of implementation, in addition to the achieved results, the Law on Deposit Insurance 2012 has encountered a number of difficulties and problems that need to be resolved.

The development of the Law on Deposit Insurance (amended) aims to create a complete and clear legal corridor for deposit insurance organizations to better protect depositors' rights, ensure the stability of the credit institution system, and social security and safety.

Governor of the State Bank of Vietnam Nguyen Thi Hong presents the Draft Law on Deposit Insurance (amended). *Photo: media.quochoi.vn*

The drafting of the Law has closely followed and fully institutionalized the Party's guidelines and policies, the State's policies; 5 policies approved by the Government ; inherited regulations that are still suitable for practice and overcame shortcomings and limitations through the implementation of the 2012 Law on Deposit Insurance.

The draft consists of 8 chapters and 42 articles, of which 26 articles are amended and supplemented; 7 new articles are added; 4 articles are abolished; and 9 articles are kept unchanged.

Notably, in Chapter II, the draft Law inherits current regulations on the rights and obligations of deposit insured persons and deposit insurance participating organizations, adding the responsibilities of participating organizations in calculating fees, publicizing deposit insurance participation and coordinating the dissemination of legal policies on deposit insurance.

For deposit insurance organizations, the draft adds rights and obligations in inspecting organizations participating in deposit insurance according to the State Bank's plan; special loans from the State Bank; assigning management and operation personnel at people's credit funds under special control...

Chairman of the Economic and Financial Committee Phan Van Mai presents the Verification Report. Photo: media.quochoi.vn — Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai presents the Verification Report. *Photo: media.quochoi.vn*

Presenting the Report on the review of the Law on Deposit Insurance project, Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai said that the Committee agreed with the necessity of developing the Law on Deposit Insurance (amended).

Regarding the rights and obligations of deposit insurance organizations, the Committee proposed to clearly define the proactive role of deposit insurance participating organizations in calculating fees and the role of deposit insurance organizations in checking and verifying deposit insurance fees. There should be specific instructions on calculation methods; clarify the legal value of inspection results conducted by deposit insurance organizations, and at the same time strengthen the mechanism for information sharing and effective coordination among relevant agencies in checking, inspecting and supervising credit institutions.

In particular, the Committee proposed to clearly distinguish the cases and conditions for deposit insurance organizations to receive support from the state budget; borrow from credit institutions, other organizations with government guarantees or special loans from the State Bank of Vietnam; consider the way of expression, ensuring compliance with the process of preparing and allocating the state budget...

Delegates attending the meeting. *Photo: media.quochoi.vn*

Regarding deposit insurance premiums (Article 19), the Economic and Financial Committee basically agrees with the provisions of the draft Law, and at the same time recommends that the regulation of deposit insurance premiums must be carefully studied, both to ensure stable revenue sources for deposit insurance organizations to effectively implement deposit insurance policies, and to be consistent with the financial capacity of organizations participating in deposit insurance.

Along with that, it is necessary to regularly review and have a roadmap for calculating deposit insurance premiums based on the assessment and classification of organizations participating in deposit insurance, specifying assessment criteria, classifying credit institutions, methods of measuring risks, methods of calculating deposit insurance premiums based on risk levels...

Source: https://hanoimoi.vn/hoan-thien-hanh-lang-phap-ly-bao-ve-nguoi-gui-tien-720616.html