The National Assembly is currently discussing the amendment of the Law on Deposit Insurance during its on-going 10th session, focusing on enhancing the role, capacity, and flexibility of Vietnam's deposit insurance to better protect depositors' rights and maintain the stability of the credit system.
This legislative effort is crucial in addressing several key issues, including deposit insurance fees, payout limits, and investment activities of deposit insurance organizations.
Regarding deposit insurance fees, the NA's Economic and Financial Committee generally agrees with the proposed regulations but suggests a thorough study to ensure a stable revenue source for deposit insurance organizations while aligning with the financial capabilities of participating institutions. A differentiated fee schedule based on risk assessment is also recommended.
In terms of investment activities, many opinions caution against expanding investment forms beyond safe portfolios, as the deposit insurance fund is not aimed at maximizing profits but operates on the principles of capital preservation and accumulation.
NA Deputy Tran Quang Minh emphasizes that the fund's essence is to protect the rights of individual depositors and vulnerable groups, not to function as a profit-driven financial institution. Policy solutions should focus on enhancing the operational capacity of deposit insurance organizations, including establishing flexible government bond trading rights, improving market analysis capabilities, and risk management.
Mr. mPhan Van Mai, Chairman of the Economic and Financial Committee, also suggests fully identifying risks associated with investment expansion, developing preventive and risk control plans, and ensuring a balance of capacity and reserves for deposit insurance activities.
Regarding the insurance payout limit, delegates believe that the State Bank Governor's authority to set the limit is appropriate, but specific guidelines on the principles of adjusting the limit to protect depositors' rights are needed.
A pressing concern is the increasing incidence of online fraud and bank account theft. Deputy Quan Minh Cuong raises the question of whether the law addresses security and liability in these cases and calls for clarity on the responsibilities of individuals and banks depending on the cause of the damage. State Bank Governor Nguyen Thi Hong states that the draft law requires deposit insurance organizations to control and manage investment risks, and the State Bank Governor will stipulate the methods and processes for risk management.
The amendment of the Deposit Insurance Law is a significant step towards strengthening the protection of depositors and ensuring the stability of Vietnam's financial system. By addressing these critical issues, the law aims to enhance the effectiveness and reliability of deposit insurance in the country.
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