|1. Vina Housing JSC.|
Category: Estate Agents
City: Ha Noi
|2. CIM Co., LTD.|
Category: Industrial Supplies
City: Ha Noi
|3. DOCIMEX Corp.|
Category: Food Manufacturing
City: Cao Lanh, Dong Thap
|4. Dopetrad Corp.|
Category: Energy Suppliers
City: Bien Hoa
|5. Tien Phong Plastic JSC.|
City: Hai Phong
|6. Dai Thien Loc Corp.|
City: Binh Duong
Experts have urged building up a deposit insurance law which aims to protect depositors and the banking system, saying that nowadays the need for such a law has become more urgent when Vietnam needs to take drastic measures to attract capital to banks.
The Deposit Insurance of Vietnam (DIV) is the only state run financial institution established by the government that aims to protect depositors and ensure the healthy operation of the banking system. In Vietnam, deposit insurance is compulsory for credit institutions. Though depositors are the direct beneficiaries of deposit insurance, they do not have to pay insurance premiums. This responsibility must be fulfilled by commercial banks.
In the worst case scenario, if a commercial bank collapses, DIV will pay compensation to depositors, 50 million dong at maximum for every depositor. Additional money will be paid after the credit institution is liquidized.
Over the last 10 years, DIV has paid 20 billion dong to 1000 depositors at collapsed credit funds across the country. Its legal capital has been raised from one trillion dong to six trillion dong.
However, experts have pointed out that the currently applied policies on deposit insurance policies have shown a lot of problems that need to be amended. In the talk with the press on the sidelines of the ongoing National Assembly’s session, Dr Cao Sy Kiem, a National Assembly’s Deputy, said that while the deposit insurance policy aims to protect the majority of depositors, the current maximum compensation level of 50 million dong proves to be too low. The level was set in 2005, but there have been so many changes in the last five years, and prices have increased sharply during that time.
Despite the high growth in the capital over the last 10 years of operation, the financial capability of DIV remains limited. According to Dr Le Xuan Nghia, Deputy Chair of the Finance Supervision Council said that DIV must be financially capable enough to shoulder the big financial duties. “Nowadays, if DIV does not have large amounts of capital, it will not be able to insure financial institutions. It will also need to be powerful enough to undertake other functions and duties,” he stressed.
Meanwhile, Dr Duong Thu Huong, Secretary General of the Vietnam Banking Association, pointed out that it is still unclear about the legal position of DIV, and that the coordination among agencies, including DIV, in the national finance supervision system also remains unclear.
“The role held by DIV in dealing with financial collapses proves not to be in accordance with international practice,” she added.
Mai Minh De, Chair of the Management Board of DIV also admitted that the policies applied to DIV show many shortcomings and called for the amendment of policies to make Vietnam’s policies come in line with international practice.
Kiem stressed that it is necessary to build up a deposit insurance law now in order to create long term confidence among the public.
Agreeing with Kiem, Tran Du Lich, former Head of the HCM City Economics Institute said that deposit insurance institutions must be seen as an indispensable part of the financial market, because it is the “safeguard” whom ensures the safety for the whole system.
Huong from a banking association noted that in other countries, the deposit insurance law is always promulgated before deposit insurance institutions are set up, while Vietnam is doing it in reverse.
|< Prev||Next >|
» Brilliance saves point for Long An
» Quang Binh caves: A bedrock of tourism
» Dong Nai against planned dams
Latest Category Posts
- Vietnam, India bolster trade exchange, cooperation
- VND9 trillion of soft loans for realty companies
- Businesses rush to delist to hide themselves from foreign “hunters”
- How much is VAMC’s bond?
- Bottled green tea market: big sharks would swallow small fishes?
- Shopping frauds rampant on internet
- Million dollar coastal apartments face difficulties in finding customers
- Vietnam turning Chinese refuse tip?
- Nokia – Samsung the battle of the two tigers
- Nearly 90% Vietnamese SMEs upbeat in business prospects
Random Category Picks
Popular Category Posts
- In economic recession, Vietnamese still spend money on luxurious cars
- Vietnamese billionaires better known in western world
- Enterprises agree to first BPO partnership
- VN rice sector concerned as Thailand mulls sell-off
- Newspaper names VN’s 100 strongest brands
- The Vietnamese billionaires who return from East European countries
- MobiFone blocks 18 spam SMS numbers
- Vietnamese steel makers hurt by deficit
- VN int’l fair boosts up handicraft and wood industry
- MOIT lends a hand to EVN to raise electricity price
- Vietnam vows to impose heavy punishment to stop seafood material bleeding
- Who is the real owner of “Vinacafe”?
- Even big foreign investors cannot reach for Sabeco
- Firms say state capital manager’s role insignificant
- Officers seize GmB milk, find new violation
- Google fined $7 million over hotspot data grab
- Vietnam vows to restrain prices to curb inflation
- Fast food chains hunt for retail premises, real estate market warms up
- Cbank takes move to stabilize forex market, but not gold
- Samsung’s $2 billion project goes “incredibly quickly”