What are the procedures for premium payment of deposit insurance in Vietnam? What are the regulations on deposit insurance activities?
What is deposit insurance in Vietnam? Who are the parties to the deposit insurance regime?
Pursuant to Clause 1, Article 4 of the 2012 Law on Deposit Insurance in Vietnam stipulating as follows:
Deposit Insurance is a guarantee for repayment of deposits to the insured persons of deposit within the limit of premium payment when the deposit insurance participating organizations fall into the state of inability to repay deposits to the depositors or go bankrupt.
Thus, deposit insurance is a guarantee for repayment of deposits to the insured persons of deposit within the limit of premium payment when the deposit insurance participating organizations fall into the state of inability to repay deposits to the depositors or go bankrupt.
Pursuant to Article 4 of the 2012 Law on Deposit Insurance in Vietnam, the parties to the deposit insurance regime are:
- Insured persons of deposit is an individual having deposits insured at the deposit insurance participation organizations
- Deposit insurance participating organizations are foreign credit organizations and banking branches established and operating under the Law on credit organizations are entitled to receive deposits of individuals.
- Deposit insurance organizations are the state financial organizations operating not for profit, implementing the deposit insurance policies, thus contributing to maintain the stability of the system of credit organizations and ensuring the safe and healthy development of the banking operation.
What are the procedures for premium payment of deposit insurance in Vietnam? What are the regulations on deposit insurance activities?
When do the obligations of insurance premium payment arise?
Pursuant to Article 22 of the 2012 Law on Deposit Insurance in Vietnam stipulating:
Arising time of obligations of premium payment
The obligations of premium payment arising from the time the State Bank of Vietnam sends document to terminate the special control or document to terminate the application or documents not to apply the measures to restore the solvency for the credit organization that is an deposit insurance participating organization still falls into bankruptcy or the State Bank of Vietnam has document to identify the foreign banking branch that is a deposit insurance participating organization losing the ability to make payment of deposits to the depositors.
Thus, the obligations of premium payment arising from the time the State Bank of Vietnam sends document to terminate the special control or document to terminate the application or documents not to apply the measures to restore the solvency for the credit organization that is an deposit insurance participating organization still falls into bankruptcy or the State Bank of Vietnam has document to identify the foreign banking branch that is a deposit insurance participating organization losing the ability to make payment of deposits to the depositors
What are the procedures for premium payment of deposit insurance in Vietnam?
Pursuant to Article 26 of the 2012 Law on Deposit Insurance in Vietnam, the deposit insurance premium payment procedure shall be carried out in the following procedures:
- Within 10 working days from the arising time of the premium payment obligation, the deposit insurance participating organization must send the dossier to request the payment of premium to the deposit insurance organization.
The dossier to request the payment of premium includes the written request of the premium payment, the list of insured persons of deposit, the deposit of each insured person and the premium to request the deposit insurance to make payment.
- Within 05 working days after receiving complete dossiers as prescribed in Clause 1 of this Article, the deposit insurance organization shall verify the documents and books to determine the amount to be paid.
- Within 10 working days after the end day of inspection specified in clause 2 of this Article, the deposit insurance organization must have a plan to pay a premium to the insured persons of deposit; publicly announce the location, time, mode of payment of premium on three consecutive issues of a central newspaper, a local newspaper where located the head office and the branches of the deposit insurance participating organization and on website of a Vietnamese newspaper; listing the list of insurance payees at the announced locations.
- Upon receipt of premium, the insured persons of deposit must produce the evidencing papers of the legal ownership with respect to the insured deposits at the deposit insurance participating organization.
- The deposit insurance organization shall directly make payment of premium to the insured persons of deposit or authorize another deposit insurance participating organization to make payment.
- After a period of 10 years from the date the deposit insurance organization has announced the first time the payment of premium, the unclaimed premium shall be established the state ownership and added to the operating capital of the deposit insurance organization. The person who has the ownership of the insured deposit shall not have the right to request the deposit insurance organization to return that premium.
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