Submitting to the National Assembly the draft Law on Deposit Insurance (amended)

On the morning of October 23, at the working session of the 10th session of the 15th National Assembly, Governor of the State Bank of Vietnam Nguyen Thi Hong, authorized by the Government, presented the Draft Law on Deposit Insurance (amended).

According to the proposal, the amendment to the Law on Deposit Insurance aims to improve the legal framework for deposit insurance organizations to operate more effectively, protect the rights of depositors, contribute to maintaining the stability of the credit institution system, and ensure social security.

The draft law inherits the current regulations on the rights and obligations of deposit insurance beneficiaries, while also adding responsibilities for deposit insurance participating organizations, including the calculation of fees and the public disclosure of deposit insurance participation information.

A view of the morning working session on October 23. Photo: QUANG PHÚC

The draft law also proposes several provisions to simplify procedures and increase the efficiency of deposit insurance organizations, such as amending and supplementing regulations on the issuance and revocation of deposit insurance participation certificates, in the direction that deposit insurance organizations automatically issue and revoke certificates immediately after the State Bank of Vietnam or competent authority issues or renews the operating license of the participating organization…

The draft law also proposes that the Governor of the State Bank of Vietnam be authorized to regulate the deposit insurance fee.

The draft law also inherits and supplements safe investment forms, including buying and selling bonds, certificates of deposit, or depositing money in commercial banks with state capital or with more than 50% state-owned enterprise capital by deposit insurance organizations. Accordingly, deposit insurance organizations must control and manage investment risks; the Governor of the State Bank of Vietnam shall prescribe the methods and procedures for risk management...

Governor of the State Bank of Vietnam, Nguyen Thi Hong, presents the draft Law on Deposit Insurance (amended). Photo: QUANG PHUC

The report presented by the Economic and Financial Committee, chaired by Phan Van Mai, stated that during the review process, the committee recommended clearly defining the proactive role of deposit insurance participating organizations in calculating fees, and the role of the deposit insurance organization in verifying and cross-checking deposit insurance fee calculations. Specific guidance on calculation methods is needed; the legal validity of inspection results conducted by the deposit insurance organization should be clarified, and mechanisms for information sharing and effective coordination among relevant agencies in inspecting, auditing, and supervising credit institutions should be strengthened.

Regarding special loans, the auditing agency recommended specific guidelines on the maximum size of special loans, calculated based on the total operational reserve fund; the development of a transparent set of criteria for approving special loans; and strengthening the mechanism for monitoring the use of these loans to ensure they are used for the intended purpose and effectively.

The auditing agency also requested clarification on the division of authority between the State Bank of Vietnam and the deposit insurance organization, specifically determining under what circumstances credit institutions are allowed to borrow specially from the State Bank of Vietnam, and under what circumstances they are allowed to borrow from the deposit insurance organization, in order to avoid overlap and improve the effectiveness of support for the financial system.

Delegates discuss in group number 2. Photo: QUANG PHÚC

Earlier that morning, National Assembly delegates continued their group discussions on the contents of the draft Law on Deposit Insurance (amended).

At Group 2, several delegates suggested that the draft should include specific mechanisms to protect the rights of depositors, especially in situations where risks arise. They also proposed clearer regulations on the division of responsibilities between different levels of authority when approving repayment or advance payment plans.

DO TRUNG

Source: https://www.sggp.org.vn/trinh-quoc-hoi-du-an-luat-bao-hiem-tien-gui-sua-doi-post819473.html