In Hanoi, on April 16-17, 2018, the Deposit Insurance of Vietnam (DIV) was the host for the 16th Annual Meeting and the International Conference of the Asia Pacific Regional Committee (APRC) under the International Association of Deposit Insurers (IADI) themed “Small and medium sized insured institutions, what we can do for them”.
Deputy Governor Dao Minh Tu attended and made his speech at the Conference. Also attending the Conference were Mr. Katsunori Mikuniya, IADI President – cum - Governor of the Deposit Insurance Corporation of Japan (DICJ); Mr. David Walker, IADI Secretary General; Mr. William Su, APRC Chairman cum Executive Vice President of the Central Deposit Insurance Corporation (Chinese Taipei); Mr. Nguyen Quang Huy, Chairman of the Board of Directors of Deposit Insurance of Vietnam (DIV) and Vice Chair of the APRC; and representatives from many international and regional deposit insurance companies, etc.
In his opening speech, Mr. Nguyen Quang Huy, Chairman of the DIV’s Board of Directors and Vice Chair of the APRC, expressed his great honor that the DIV was once more selected to be the host for the Annual Meeting and the International Conference of the APRC, which was an important event for the deposit insurers of the APRC in particular and the IADI in general, after 11 years since its first hosting in Hanoi in 2007. He affirmed the increasingly important role of the credit institutions system as the backbone of the national economy, with positive contributions to the socio-economic development. An indispensable component of the credit institutions system is the small and medium sized financial institutions, particularly People’s Credit Funds (PCF).
Like other deposit insurers in the world, DIV plays a crucial role for the PCFs and has always been a close companion of the PCFs. In the context of comprehensive restructuring of the credit institutions in Vietnam, especially after the promulgation of the Law amending and supplementing a number of articles of the Law on Credit Institutions, the DIV has been provided with a legal ground to participate and supply more effective assistance to the PCFs, especially the financial assistance to meet their liquidity demands and to stabilize their operations. Therefore, the DIV’s leaders reaffirmed the great significance of this 16th Annual Meeting and the International Conference of the APRC.
A snapshot of the Conference
Speaking at the Conference, Deputy Governor Dao Minh Tu said that the Conference was a great opportunity for DIV and Vietnam’s financial supervision agencies to enhance the connection with other deposit insurers in the world, creating a forum for the participants to exchange their views and discuss solutions to the implementation of substances and cooperation initiatives of the committees and associations.
He added that the Government and the SBV have been actively implementing the Scheme on restructuring credit institutions in association with the resolution of non-performing loans for 2016-2020 period, which defines the increasingly important role of DIV in dealing with weak small-sized credit institutions in order to protect the legitimate rights and interests of depositors, contributing to maintaining the stability of the credit institutions, as well as safe and sound banking operations, thus ensuring social protection. Therefore, in the coming time, the SBV would continue to recommend the Government to promulgate further legal documents in order to enable DIV to contribute more to the restructuring process and to strengthen its instruments of supervising the credit institutions, particularly small and medium-sized ones. He also confirmed that the SBV - as a central bank - is always committed to fully supporting DIV’s operations in particular and the IADI’s cooperation programs in general.
Deputy Governor Dao Minh Tu and participants at the Conference
The conference was composed of 5 sessions, three of which focused on the operations of the deposit insurers with small and medium-sized insured institutions, specifically the supervision, examination, assistance, resolution and liquidation. The two other sessions were for discussions of the effective development of a deposit insurance system by promoting the compliance assessment of the IADI Core Principles. The enhancement of the Core Principles application is one of the top priorities of the IADI and is listed in the IADI’s Development Strategies for the period 2016-2019. The Self-Assessment Technical Assistance Program (SATAP) is one of the initiatives to realize the above mentioned prioritized objective.
According to the information shared at the conference, a number of countries have conducted SATAP in the recent time, including Vietnam. The results of the SATAP implementation would benefit DIV in particular and the banking and financial system in general. This was a good opportunity for DIV to self-assess its deposit insurance policy and operations based on the “Core Principles for effective deposit insurance systems”, which were updated latest in November 2014, thereby giving recommendations and proposals to the SBV and the Government in order to enhance the deposit insurance policy and operations in Vietnam. Moreover, the assessment and recommendations would help DIV finalize its draft “Development Strategy of the Deposit Insurance of Vietnam towards 2025 and vision to 2030”.
Le Hang