Vietnam: Which deposits are insured under the deposit insurance policy? Which deposits are uninsured?
Which deposits are insured and which are not?
Pursuant to Article 18 of the 2012 Law on Deposit Insurance in Vietnam stipulating insured deposit as follows:
Insured deposit
Deposit insured is the deposit in Vietnam Dong of individuals deposited at the deposit insurance participating organization in the form of term deposit, non-term deposit, saving deposit, certificates of deposit, promissory notes, bills and other forms of deposit under the provisions of the Law on credit organizations, other than the deposits regulated in Article 19 of this Law.
Pursuant to the regulations that insured deposit is the deposit in Vietnam Dong of individuals deposited at the deposit insurance participating organization in the form of:
- Term deposit;
- Non-term deposit;
- Saving deposit;
- Certificates of deposit;
- Promissory notes, bills;
- Other forms of deposit under the provisions of the Law on credit organizations.
In addition, the types of deposits specified in Article 19 of the 2012 Law on Deposit Insurance in Vietnam are uninsured, specifically:
- Money deposited at the credit organization of the individual who owns more than 5% of the charter capital of that credit organization.
- Money deposited at the credit organization of the individual who is a member of the member Board, member of Board of Directors, member of control Board, General Director (Director), Deputy General Director (Deputy Director) of that credit; Money deposited at the foreign banking branch of the individual who is the General Director (Director), Deputy General Director (Deputy Director) of that foreign banking branch.
- Money used to buy unknown valuable papers issued by the deposit insurance participating organization.
Vietnam: Which deposits are insured under the deposit insurance policy? Which deposits are uninsured?
What is the deadline for the payment of deposit insurance premium?
According to Article 6 of Circular No. 24/2014/TT-NHNN, the deadline for the payment of deposit insurance premium is as follows:
Deadline for the payment of deposit insurance premium
Deposit insurance premium is calculated and paid every quarter of a fiscal year. On 20th day of the first month of a payment quarter at the latest, the insured institutions must pay deposit insurance premium to the Deposit Insurance of Vietnam. If the final date on which due payment of insurance premium must be made is a holiday or day off, the insured institutions must fulfill their payment obligations at a consecutive date.
Based on the above provisions, deposit insurance premium is calculated and paid every quarter of a fiscal year.
On 20th day of the first month of a payment quarter at the latest, the insured institutions must pay deposit insurance premium to the Deposit Insurance of Vietnam.
Note: If the final date on which due payment of insurance premium must be made is a holiday or day off, the insured institutions must fulfill their payment obligations at a consecutive date.
What are the rights and obligations of the deposit insurance organizations in Vietnam?
Pursuant to Article 13 of the 2012 Law on Deposit Insurance in Vietnam stipulating as follows:
Rights and obligations of the deposit insurance organizations in Vietnam
1. Building the development strategy of the deposit insurance for the State Bank of Vietnam to present the Prime Minister for the approval and organization of implementation.
2. Making proposal to the competent state management agencies to promulgate or amend, supplement, supersede, annul and suspend the execution of the legal normative documents related to the deposit insurance activities.
3. Being examined and inspected and supervised by the State Bank of Vietnam and the competent state agencies as prescribed by the law.
4. Issuing and revoking the Certificate of deposit insurance participation
5. Requiring the deposit insurance participating organizations to provide information on the insured deposit.
6. Calculating and collecting deposit insurance fees for the deposit insurance participating organizations as prescribed by this law.
7. Managing, using and preserving the capital resources of deposit insurance
8. Making payment of premium to the insured persons of deposit as prescribed by this law.
9. Monitoring and inspecting the compliance with the legal provisions on deposit insurance; making proposal to the State Bank of Vietnam to handle the acts of violation of provisions of the law on deposit insurance.
10. Aggregating, analyzing and processing information on the deposit insurance participating organizations in order to detect and propose the State Bank of Vietnam to promptly handle violations of safety regulations on banking operations and risks that cause the unsafety in the banking system.
11. Ensuring the confidentiality of the data of deposit related to the deposit insurance of the deposit insurance participating organizations as prescribed by law.
12. Receiving the support on the principle of reimbursement from the state budget as decided by the Prime Minister or borrowing from the other credit organizations and other organizations with the guarantee of the Government in case the capital resources of the deposit insurance organizations temporarily are not sufficient to pay the premium; receiving funding from foreign and domestic organizations and individuals to strengthen the operational capacity.
13. Participating in special control process for the deposit insurance participating organizations as prescribed by the State Bank of Vietnam; participating in the management and liquidation of assets of the deposit insurance participating organizations as prescribed by the Government.
14. Organizing to propagate the policies and laws on deposit insurance; organizing training and fostering the profession of deposit insurance, researching and applying the science and technology and management methods in accordance with the requirements of development of the deposit insurance organizations.
Thus, the deposit insurance organizations will have the rights and obligations as stipulated above.
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