Banks Must Participate in Deposit Insurance from 2013

All credit organizations and banking branches operating in Vietnam, excluding the policy bank, must participate in deposit insurance from January 01, 2013.

 

This is included in the law on deposit insurance No. 06/2012/QH13 which has been approved by the National Assembly in order to complete the legal framework on operation of deposit insurance and implement the State policy on protecting the legal rights and benefits of depositors.

 

Insured deposit is the deposit in Vietnam Dong and it doesn’t belong to individuals who are a member of the member Board, member of Board of Directors, member of control Board, General Director (Director), Deputy General Director (Deputy Director) of that credit; or of the individual who owns more than 5% of the charter capital of that credit organization.

 

The Prime Minister has regulated the fee framework of the deposit insurance at the request of the State Bank of Vietnam. And the deposit insurance fees are calculated on the basis of the average deposit balance of the insured deposit at the deposit insurance participating organizations. The deposit insurance fees are calculated and paid quarterly in the fiscal year.

 

If the deposit insurance participating organization violates the deadline to pay the deposit insurance fees, it shall be fined for each day of late payment equal to 0.05% amount of the late payment.

 

In case the deposit insurance participating organization fails to make payment or makes inadequate payment of the deposit insurance fees, the deposit insurance organization shall send the document to the State Bank of Vietnam to request a suspension or temporary suspension of deposit receiving operation of the deposit insurance participating organization.