Please let us know about deposit insurance according to the laws of Vietnam?

On 25 April 2006, State Bank of Vietnam issued Circular No. 03/2006/TT-NHNN guiding a number of provisions on deposit insurance. Accordingly:

 

Credit institutions and organizations other than credit institutions that are allowed to conduct a number of banking operations according to the provisions of the Credit Institutions Law in Vietnamese territory and take deposits from organizations and individuals, must participate in compulsory deposit insurance.

 

Deposits to be insured are those in Vietnam dong deposited at insured organizations by individuals, households, cooperative teams, private enterprises and partnerships, except for the following cases:

 

-  Deposits of shareholders owning more than 10 per cent of the charter capital or holding more than 10 per cent of the voting share capital of such insured organizations;

 

-  Deposits of members of Managing Boards or Control Boards, general directors (directors) or deputy general directors (deputy directors) of such insured organizations;

 

-  Deposits used as security for the performance of depositors’ obligations;

 

-  Deposits used for the purchase of valuable papers issued by organization participating in deposit insurance.

 

Organizations participating in deposit insurance must complete all procedures of participating in deposit insurance before taking deposit. Organizations conducting deposit operation but not yet participated in deposit insurance must complete all procedures of participating in deposit within 30 days from the effective date of this Circular.

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Consulted byInvestconsult Group

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Email: incom@hn.vnn.vn