DIV must get larger role: Deputy PM

August 13, 2016 | 10:11

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The Law on Deposit Insurance should be amended to give the Deposit Insurance of Việt Nam (DIV), a non-profit state financial organisation, more independence in managing risk at credit institutions, according to Deputy Prime Minister Vuong Dinh Hue.

The Law on Deposit Insurance should be amended to give the Deposit Insurance of Việt Nam (DIV), a non-profit state financial organisation, more independence in managing risk at credit institutions. - Photo chinhphu.vn

By the end of May, the DIV had monitored more than VND3,000 trillion (US$134.5 billion) worth of deposits at 1,252 deposit service providers, comprising 92 commercial and co-operative banks, 1,156 people's credit funds, and three micro-financial organisations, Chairman of the DIV board of directors Nguyen Quang Huy said.

The DIV's total capital was VND30.68 trillion, including VND5 trillion of charter capital. More than 99 per cent of the idle capital was invested in government bonds.

The DIV has so far compensated 1,793 people who had saved money in 39 dissolved credit funds.

Deputy Finance Minister Tran Van Hiwu said the DIV was initially tasked with dealing with bankrupt credit funds. Its total asset value now exceeds VND30 trillion, so the DIV should take on more responsibilities.

Deputy PM Hue said the DIV was an important institution, but it had not engaged in the restructuring of the banking and credit systems. At present, it is only able to pay compensation to small credit organisations that go bankrupt.

He told the DIV to clarify its role in bank restructuring and bad debt settlement in the development strategy.

Within the next two months, international organisations would submit an official consultation plan to the Vietnamese government, in which they would suggest revisions to the Law on Deposit Insurance so that the DIV could actively take part in bank restructuring, he said.

VNS

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