The Government's decision to increase the charter capital of Vietnam Deposit Insurance

The Government's decision to increase the charter capital of Vietnam Deposit Insurance (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

On November 20, 2023, the Prime Minister issued Decision 1434/QD-TTg, amending Decision 1434/QD-TTg on establishing Vietnam Deposit Insurance and regulating the functions and tasks of Vietnam Deposit Insurance, and amending Decision 1395/QD-TTg approving the Charter on the organization and operation of Vietnam Deposit Insurance.

The Government's decision to increase the charter capital of Vietnam Deposit Insurance

The charter capital of Vietnam Deposit Insurance will be 5,281,018,572,109 VND. (According to Decision 1434/QD-TTg dated August 13, 2013, the charter capital of Vietnam Deposit Insurance is VND 5,000 billion).

It is known that Vietnam Deposit Insurance is a state-owned financial institution operating not for profit but to protect the legitimate rights and interests of depositors, implementing deposit insurance policies contributes to maintaining the stability of the credit system and ensuring the safe and healthy development of banking activities.

Decision 1434/QD-TTg takes effect from the date of signing.

Duties and powers of Vietnam Deposit Insurance

Specifically, Article 3 of Decision 1434/QD-TTg stipulates the tasks and powers of Vietnam Deposit Insurance as follows:

- Develop a deposit insurance development strategy for the State Bank to submit to the Prime Minister for approval and implementation.

- Recommend and propose to the State Bank and competent state management agencies the development, amendment, and supplementation of policies and procedures on deposit insurance; promulgate new or amended policies; supplement, replace, annul, or suspend the implementation of legal documents related to deposit insurance activities.

- Issuance, re-issuance, and revocation of Deposit Insurance Participation Certificates.

- Require organizations participating in deposit insurance to provide information about insured deposits periodically or irregularly.

- Providing information to the State Bank and accessing information from the State Bank shall comply with Article 8, Article 9 and Article 10 of Decree No. 68/2013/ND-CP.

- Calculate and collect deposit insurance fees for organizations participating in deposit insurance according to the provisions of the Deposit Insurance Law and relevant legal documents.

- Manage, use, and preserve deposit insurance capital.

- Pay and authorize insurance payments to insured depositors according to the provisions of the Deposit Insurance Law and relevant legal documents.

- Monitor and inspect compliance with legal regulations on deposit insurance; recommend that the State Bank handle violations of the law on deposit insurance.

- Synthesize, analyze, and process information about organizations participating in deposit insurance to develop and propose to the State Bank to promptly handle violations of regulations on the safety of banking operations and risks causing insecurity in the banking system.

- Ensure the confidentiality of deposit data and documents related to deposit insurance for organizations participating in deposit insurance according to the provisions of law.

- Receive support on the principle of reimbursement from the state budget according to the Prime Minister's decision or borrow from credit institutions or other organizations with Government guarantees in case the capital source of the deposit insurance organization is temporarily insufficient to pay the insurance premium; 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; participate in the management, liquidation of assets, and recovery of insurance amounts payable by organizations participating in deposit insurance according to the provisions of law.

- Organize propaganda of policies and laws on deposit insurance; Organize training and professional development on deposit insurance; research and apply science, technology, and management methods in accordance with the development requirements of deposit insurance organizations.

- Implement commitments to organizations participating in deposit insurance and other commitments under the responsibility of Vietnam Deposit Insurance.

- Innovate and modernize technology and management methods in accordance with the development requirements of Vietnam Deposit Insurance.

- Fulfill obligations towards employees according to the provisions of law; select, hire, arrange, and train human resources; choose the form of salary and bonus payment according to the provisions of law.

- Receive, manage, and use charter capital for proper purposes; additional capital sources; land and other resources are assigned by the State according to the provisions of law.

- Transfer, lease, mortgage, or pledge assets under management according to law.

- Cooperate with domestic and foreign organizations to strengthen the operational capacity of Vietnam Deposit Insurance and the organizations participating in deposit insurance.

- Subject to examination, inspection, and supervision by the State Bank and competent state agencies according to the provisions of the law.

- Perform other tasks and powers when assigned by the Prime Minister or the Governor of the State Bank.

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