Governor Nguyen Thi Hong: There was a time when deposit insurance was nearly 100,000 billion but could not be used.

Governor Nguyen Thi Hong said the revised bill would allow deposit insurance to be paid to depositors sooner, rather than having to wait until a bankruptcy declaration to be used.

Governor Nguyen Thi Hong - Photo: GIA HAN

On the afternoon of September 22, the National Assembly Standing Committee gave opinions on the draft Law on Deposit Insurance (amended).

The draft consists of 8 chapters and 44 articles, of which 28 articles are amended and supplemented; 7 new articles are added; 2 articles are abolished; and 9 articles are kept unchanged.

Expanding investment forms of deposit insurance organizations

Regarding deposit insurance fees, State Bank Governor Nguyen Thi Hong said the draft law assigns the Governor to prescribe fee levels and apply a uniform or differentiated deposit insurance fee mechanism appropriate to the characteristics of the Vietnamese credit institution system in each period.

The draft law also adds provisions on the temporary suspension of payment of deposit insurance premiums arising before the time of placing under special control for credit institutions under special control.

This creates a basis for these credit institutions not to immediately pay the underpaid or late deposit insurance premiums and fines (if any).

However, the credit institution is responsible for developing a plan to repay the deferred amount in the restructuring plan.

Regarding insurance payment, according to Ms. Hong, the draft law stipulates the time when the obligation to pay insurance arises from one of the following times:

The bankruptcy plan of the credit institution is approved or the State Bank has a document confirming that the foreign bank branch is unable to pay deposits.

The State Bank shall issue a document suspending the deposit-taking activities of a credit institution under special control when the credit institution has accumulated losses greater than 100% of the value of its charter capital and reserve funds according to the most recent audited financial report; subject to payment in special cases.

In addition, the bill also supplements the expansion of investment forms of deposit insurance organizations, including: buying and selling bonds and deposit certificates issued by state-owned commercial banks and joint-stock commercial banks with state-owned enterprises accounting for over 50% of charter capital...

Meeting scene - Photo: GIA HAN

Allows deposit insurance to be paid out to depositors sooner

After the review, Chairman of the Economic and Financial Committee Phan Van Mai said that the Standing Committee of the Committee proposed to study and determine the roadmap for building deposit insurance premiums based on the assessment and classification of credit institutions.

Regarding the insurance payment limit, according to the audit agency, it is appropriate to assign the Governor to regulate the insurance payment limit in each period, and at the same time, there should be specific guidance on the principles for adjusting the insurance payment limit.

Regarding over-limit payments, it is necessary to clearly define the basis for determining "special cases" requiring over-limit payments, and study a transparent approval process with the participation of relevant agencies such as the State Bank, Ministry of Finance , etc.

Receiving and explaining at the end of the meeting, State Bank Governor Nguyen Thi Hong said that according to current regulations, when an incident occurs, such as a bank being hit by a mass withdrawal, many solutions are needed to stabilize the system.

For example, the central bank has to make special loans in large volumes.

“Deposit insurance, although at that time had nearly 100,000 billion VND, could not be used. Because the old regulation was that this fee was in the collected fund, and could only be paid when the credit institution went bankrupt. But in reality, bankruptcy is also a difficult story,” said the Governor.

Therefore, this amendment, according to Ms. Hong, needs to involve the deposit insurance organization in the banking restructuring process.

She emphasized that the most important thing is to allow deposit insurance to be paid to depositors sooner, instead of having to wait until the credit institution declares bankruptcy to use it.

The deposit insurance agency pays deposits earlier to ensure system safety. If the fund is used up but there is still not enough money to pay depositors, it can borrow specially from the State Bank.

Ms. Hong explained that in case of necessity, the State Bank will still lend, depending on the context and practical situation, it will determine whether to give special loans from the State Bank or deposit insurance.

And in case that reserve fund is used up, the deposit insurance can borrow from the State Bank. Then, the deposit insurance will collect fees to repay the special loans, that is the most important point.

THANH CHUNG

Source: https://tuoitre.vn/thong-doc-nguyen-thi-hong-co-thoi-diem-bao-hiem-tien-gui-gan-100-000-ti-nhung-khong-su-dung-duoc-20250922155029049.htm