The majority of delegates emphasized the need to amend the Law to strengthen the legal foundation, protect the rights of depositors and the stability of credit institutions.
During the discussion, delegate To Ai Vang ( Can Tho Delegation) was interested in the insurance payment limit (Article 22) when it is stipulated that the Governor of the State Bank of Vietnam decides the insurance payment limit in each period.
Delegates approved the draft for three basic reasons: It is consistent with the Party's policy on decentralization and delegation of power; when the Governor decides on the limit, the implementation process is short; helping the State Bank respond quickly to changes.
From current practice, delegates recommended that the Government establish a mechanism to monitor, inspect and handle violations (if any) to ensure publicity and transparency; power goes hand in hand with responsibility.
The delegate said that according to current regulations, Vietnam Deposit Insurance is allowed to use temporarily idle capital to deposit and buy bonds at the State Bank or government bonds to preserve and develop capital. However, the expansion of the portfolio must be accompanied by strict supervision, ensuring absolute safety and not affecting the ability to pay.
Therefore, delegates recommended that the draft Law should consider allowing investment in bonds of state-owned commercial banks with healthy financial status and high credit ratings. At the same time, clearly stipulate the responsibility of publicly reporting investment activities of the Vietnam Deposit Insurance to ensure maximum safety of people's deposits.
Delegate Nguyen Thanh Nam (Phu Tho Delegation) proposed to clarify the criteria for fee increase; application period; requirements for transparency as well as the responsibility of the Governor of the State Bank in guiding special loan plans, including financial condition thresholds, insurance limits, time limits for fee increase application and maximum repayment period.
According to the delegate, in the long term, it is necessary to apply a differentiated deposit insurance fund mechanism instead of the current VND deposit insurance fund mechanism. In particular, the Law needs to go hand in hand with the establishment of a strict and transparent control mechanism so that special loans become a tool to stabilize the system, not an easy financial exit, ensuring the dual goal: protecting depositors and maintaining market discipline.
Meanwhile, delegate Thach Phuoc Binh (Vinh Long Delegation) said that this is a particularly important law, directly related to the interests of tens of millions of depositors and the safety of the financial and banking system.
Concerned about enhancing the inspection and supervision role of the Vietnam Deposit Insurance, the delegate said that the draft has expanded the inspection task, but currently the deposit insurance only reports to the State Bank and has not been able to make direct recommendations to credit institutions when detecting unsafe risks.
The delegate said that in practice, many violations at people's credit funds were detected early but were handled slowly due to the lack of a direct warning mechanism. Therefore, the delegate proposed to add regulations allowing the Vietnam Deposit Insurance to issue warnings and recommendations directly to credit institutions when risks are detected and at the same time report to the State Bank for appropriate monitoring measures.
Regarding the role in handling weak credit institutions, delegate Thach Phuoc Binh said that the draft assigns new tasks to deposit insurance such as evaluating restructuring plans, providing special loans, buying long-term bonds, and assigning personnel to weak People's Credit Funds.
However, with more than 1,100 small-scale people's credit funds, the deposit insurance has the capacity to preside over restructuring, but the draft does not assign this authority. International experience shows that the deposit insurance organization is most suitable to handle small-scale organizations.
Therefore, the delegates proposed that the Vietnam Deposit Insurance Corporation take the lead in developing a plan to restructure, dissolve or bankrupt weak People's Credit Funds; the State Bank approves and supervises implementation. This would reduce the burden on the State Bank and be in line with the banking sector's development strategy.
Delegate Do Duc Hong Ha (Hanoi Delegation) highly appreciated the amendment's objective of enhancing the financial capacity of the deposit insurance organization - a key factor to promote its role in handling weak credit institutions. The delegate said that Clause 13, Article 14 of the draft Law allows the deposit insurance organization to receive reimbursable support from the state budget when capital sources are temporarily insufficient.
According to delegates, this regulation is both contradictory and unfeasible. Because payment must be quick to stabilize psychology, while budget support must go through a time-consuming appraisal, approval, and disbursement process, easily missing the golden time to handle the crisis.
Therefore, delegates proposed to either add to the law special procedures and processes for receiving budget support in emergency situations; or remove this provision because Article 38 already has a special borrowing mechanism from the State Bank - a more feasible and effective tool. In addition, the drafting agency needs to clarify the meaning of the term "temporarily insufficient capital" to avoid different interpretations in each place, causing difficulties in implementation.
At the discussion session, State Bank Governor Nguyen Thi Hong, on behalf of the drafting agency, received comments from National Assembly deputies and reported on the receipt and explanation of a number of major issues that deputies were concerned about, including: Deposit insurance fees; deposit insurance inspection activities; insurance limits; procedures and insurance payments...
Source: https://hanoimoi.vn/nang-cao-vai-tro-cua-to-chuc-bao-hiem-tien-gui-de-bao-ve-tot-hon-quyen-loi-nguoi-gui-tien-723295.html
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