Perfecting regulations on payment limits, ensuring fairness among deposit groups

Discussing at the Hall on the afternoon of November 14 about the draft Law on Deposit Insurance (amended), delegate Hoang Thi Doi (Son La) proposed clarifying the basis for determining the insurance payment limit and adding regulations to ensure fairness among depositor groups; at the same time, strengthening propaganda and supporting people to access and use banking services safely and effectively.

Delegate Hoang Thi Doi ( Son La ) speaks. Photo: Quang Khanh

Regarding the insurance payment limit, according to delegate Hoang Thi Doi, the current payment level of 125 million VND is no longer suitable for reality, especially when the scale of deposits and income of people is increasing. Although the draft Law assigns the Governor of the State Bank to decide the limit in each period, to ensure transparency, stability and basis, the delegate suggested that the principles and criteria should be clearly stipulated in the law.

The delegates proposed that the bases for consideration include: average income per capita; the scale and structure of common deposits; financial capacity and scale of the Deposit Insurance Fund; the safety level of the credit institution system; the goal of protecting depositors and maintaining financial stability. According to the delegates, identifying and clearly defining these criteria will help limit discretion and increase objectivity in monitoring and policy management.

Delegates attending the meeting. Photo: Quang Khanh

Regarding the provision in Clause 2, Article 22, which allows for overpayment in “special cases”, the delegate believes that this wording may lead to the view that only large credit institutions of systemic importance, when they fail, will be subject to special mechanisms. Meanwhile, depositors at People's Credit Funds in mountainous, remote and isolated areas are a weaker group and also need to be adequately protected. Therefore, the delegate suggests revising it to: “in case of necessity, to best protect depositors” and at the same time clearly defining the criteria for what is considered a “necessary case”.

"Such a regulation will help the State Bank have a basis to allow deposit insurance organizations to effectively perform their tasks; at the same time, ensure fairness among depositor groups, regardless of the size of the credit institution," the delegate emphasized.

The National Assembly discussed in the Hall the draft Law on Deposit Insurance (amended). Photo: Quang Khanh

Delegate Hoang Thi Doi highly appreciated the draft Law's addition of a provision in Clause 7, Article 13 requiring organizations participating in deposit insurance to coordinate with deposit insurance organizations in policy dissemination and propaganda.

This provision has opened a mechanism to require banks and People's Credit Funds to participate in disseminating deposit insurance policies to the people. Emphasizing this, the delegate said that this is an important mechanism, especially for groups of people in difficult areas where access to information is limited.

The delegate also suggested that the drafting agency should continue to review the provisions on the rights and obligations of the deposit insurance organization in Clause 16, Article 14, in the direction of supplementing communication tools and forms of communication on deposit insurance policies. At the same time, consider adding the task of the deposit insurance organization in guiding people to use banking services safely and effectively.

With the goal of protecting depositors, the deposit insurance organization is not only responsible for paying depositors when a failure occurs, but also has the responsibility to accompany depositors, helping depositors use banking services safely even when no failure occurs, delegate Hoang Thi Doi emphasized.

Source: https://daibieunhandan.vn/hoan-thien-quy-dinh-ve-han-muc-chi-tra-bao-dam-cong-bang-giua-cac-nhom-gui-tien-10395675.html