Vietnam: What rights and obligations do the deposit insurance organizations have?

In addition to regulating rights and obligations of the insured persons of deposit, the Law on deposit insurance 2012 of Vietnam also specifies rights and obligations of the deposit insurance organizations. Specifically, deposit insurance organizations shall have the following rights and obligations:

1. Building the development strategy of the deposit insurance for the State Bank of Vietnam to present to 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.

7. Managing, using and preserving the capital resources of deposit insurance.

8. Making payment of premium to the insured persons of deposit.

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.

This is the content specified in Article 13 of the Law on deposit insurance 2012 of Vietnam effective from January 01, 2013.

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