What is deposit insurance? What is the purpose of deposit insurance in Vietnam?
What is deposit insurance? What is the purpose of deposit insurance in Vietnam?
Pursuant to Article 4 of Law on deposit insurance 2012, the regulations are as follows:
Article 4. Interpretation of terms
In this Law, the following terms are understood as follows:
1. Deposit insurance is the guarantee to reimburse deposits to insured depositors within the insurance payout limit when the organization participating in deposit insurance falls into a state of inability to repay deposits to depositors or bankruptcy.
2. An insured depositor is an individual with deposits insured at an organization participating in deposit insurance.
3. An organization participating in deposit insurance is a credit institution or a foreign bank branch established and operating under the Law on Credit Institutions receiving deposits from individuals.
[...]
Pursuant to Article 3 of Law on deposit insurance 2012, which regulates the purpose of deposit insurance in Vietnam :
Article 3. Purpose of deposit insurance
Deposit insurance aims to protect the legitimate rights and interests of depositors, contributing to maintaining the stability of the credit institution system, ensuring the safe and healthy development of banking activities.
Thus, deposit insurance is the guarantee to reimburse deposits to insured depositors within the insurance payout limit when the organization participating in deposit insurance falls into a state of inability to repay deposits to depositors or bankruptcy.
The general purpose of deposit insurance is to protect the legitimate rights and interests of depositors, contributing to maintaining the stability of the credit institution system, ensuring the safe and healthy development of banking activities.
What is deposit insurance? What are the rights and obligations of the deposit insurance organizations in Vietnam? (Internet image)
What are the rights and obligations of the deposit insurance organizations in Vietnam?
Pursuant to Article 13 of Law on deposit insurance 2012, which regulates the rights and obligations of the deposit insurance organization as follows:
- Develop the deposit insurance development strategy for the State Bank of Vietnam to submit to the Prime Minister of Vietnam for approval and organize implementation.
- Propose to competent state management agencies to issue new or amend, supplement, replace, cancel, abolish, suspend the enforcement of legal documents related to deposit insurance activities.
- Be subject to inspection, examination, and supervision by the State Bank of Vietnam and competent state agencies as prescribed by law.
- Issue and revoke Deposit Insurance Participation Certificates.
- Require organizations participating in deposit insurance to provide information about insured deposits.
- Calculate and collect deposit insurance premiums from organizations participating in deposit insurance as prescribed.
- Manage, use, and preserve the deposit insurance fund.
- Pay insurance to insured depositors as prescribed.
- Monitor and check the compliance with the legal regulations on deposit insurance; propose to the State Bank of Vietnam to handle violations of the law on deposit insurance.
- Aggregate, analyze, and process information about organizations participating in deposit insurance to detect and propose to the State Bank of Vietnam to promptly handle violations of safety regulations on banking activities, risks causing insecurity in the banking system.
- Ensure the confidentiality of deposit figures and materials related to deposit insurance of organizations participating in deposit insurance as prescribed by law.
- Receive support under the principle of reimbursement from the state budget as decided by the Prime Minister of Vietnam or borrow from credit institutions or other organizations with the guarantee of the Government of Vietnam in case the deposit insurance organization temporarily lacks funds to pay insurance; receive funding from domestic and foreign organizations and individuals to enhance operational capacity.
- Participate in the special control process for organizations participating in deposit insurance according to the regulations of the State Bank of Vietnam; participate in managing and liquidating the assets of organizations participating in deposit insurance according to the regulations of the Government of Vietnam.
- Organize the dissemination of policies and laws on deposit insurance; organize training and fostering professional skills in deposit insurance, research and apply science, technology, and management methods suitable to the development requirements of the deposit insurance organization.
What are the rights and obligations of the insured persons of deposit in Vietnam?
Pursuant to Article 11 of Law on deposit insurance 2012, which regulates the rights and obligations of the insured persons of deposit in Vietnam:
- Be insured for their deposits at the organization participating in deposit insurance as prescribed.
- Receive full and timely insurance payout as prescribed.
- Request organizations participating in deposit insurance and deposit insurance organizations to provide complete and accurate information, policies about deposit insurance.
- File complaints, denunciations, lawsuits against agencies, organizations, individuals related to deposit insurance as prescribed by law.
- Have the obligation to provide complete and truthful information about deposits as required by the organization participating in deposit insurance, deposit insurance organization when carrying out insurance payout procedures.
