Decree No. 68/2013/ND-CP detailing and guiding the implementation of the Law on Deposit Insurance

DECREE

Detailed regulations and guidance for implementing the Law on Deposit Insurance

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Law on Deposit Insurance dated June 18, 2012;

At the proposal of the Governor of the State Bank of Vietnam,

The Government issues this Decree to provide detailed regulations and guidance for implementing the Law on Deposit Insurance.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides detailed regulations and guidance for implementing the Law on Deposit Insurance.

Article 2. Applicability

This Decree applies to deposit insurance organizations, organizations participating in deposit insurance, deposit insured persons, and other organizations and individuals related to deposit insurance activities.

Article 3. Deposit Insurance Organization

1. A deposit insurance organization is a state financial institution established by the Prime Minister and assigned functions and tasks based on the proposal of the Governor of the State Bank of Vietnam.

2. A deposit insurance organization is a legal entity operating without profit objectives, ensuring capital safety and self-covering costs. Revenue from the deposit insurance organization is exempted from all types of taxes.

3. The deposit insurance organization may allocate a portion of its revenue from temporarily idle investment funds to cover costs. The Ministry of Finance shall take the lead and coordinate with the State Bank of Vietnam to determine the specific amount that can be allocated.

Article 4. Organizations Participating in Deposit Insurance

1. Organizations participating in deposit insurance are credit institutions and foreign bank branches receiving deposits from individuals, including commercial banks, cooperative banks, people's credit funds, and foreign bank branches established and operating in accordance with the Law on Credit Institutions.

2. Microfinance organizations must participate in deposit insurance for individual deposits, including voluntary customer deposits, except for mandatory savings deposits as prescribed by microfinance organizations.

3. Policy banks are not required to participate in deposit insurance.

Article 5. Participation in Deposit Insurance

Credit institutions and foreign bank branches as stipulated in Article 4 of this Decree must participate in deposit insurance and publicly display a copy of the Certificate of Participation in Deposit Insurance at their headquarters, branches, and transaction points accepting individual deposits.

Chapter II.
DEPOSIT INSURANCE ACTIVITIES

Article 6. Issuance of Certificate of Participation in Deposit Insurance

1. At least 15 (fifteen) days before commencing operations, organizations participating in deposit insurance must submit complete application documents for the Certificate of Participation in Deposit Insurance as prescribed in Clause 3, Article 14 of the Law on Deposit Insurance to the deposit insurance organization.

2. Within five (five) working days from the date of receipt of complete application documents for the Certificate of Participation in Deposit Insurance, the deposit insurance organization is responsible for issuing the Certificate of Participation in Deposit Insurance.

Article 7. Reissuance of Certificate of Participation in Deposit Insurance

1. Organizations participating in deposit insurance are entitled to reissue the Certificate of Participation in Deposit Insurance when permitted by the State Bank of Vietnam to resume individual deposit acceptance activities. Within five (five) working days from the date of receipt of the request for reissuance of the Certificate of Participation in Deposit Insurance and a copy of the State Bank of Vietnam's approval document regarding the resumption of individual deposit acceptance activities, the deposit insurance organization is responsible for reissuing the Certificate of Participation in Deposit Insurance.

2. In case the Certificate of Participation in Deposit Insurance is lost, torn, or damaged, it will be reissued within five (five) working days from the date of receipt of the request for reissuance of the Certificate of Participation in Deposit Insurance from the organization participating in deposit insurance.

3. Organizations participating in deposit insurance are entitled to reissue the Certificate of Participation in Deposit Insurance in cases where there are changes to the information on the Certificate of Participation in Deposit Insurance. Within five (five) working days from the date of receipt of the request for reissuance of the Certificate of Participation in Deposit Insurance and a copy of the document proving the change in information of the organization participating in deposit insurance, the deposit insurance organization is responsible for reissuing the Certificate of Participation in Deposit Insurance.

Article 8. Principles for Providing Information between the State Bank of Vietnam and Deposit Insurance Organizations

1. Ensure truthfulness, objectivity, timeliness, and completeness as prescribed.

2. The organization receiving information shall be responsible for managing, using, and securing such information in accordance with the provisions of the law.

3. The provision of information classified as state secrets shall be carried out in accordance with the laws on protecting state secrets.

Article 9. Provision of Information from Deposit Insurance Organizations to the State Bank of Vietnam

1. Deposit insurance organizations shall be responsible for reporting to the State Bank of Vietnam the information as stipulated in Clause 1, Article 33 of the Law on Deposit Insurance.

2. When performing tasks as prescribed in Clause 10, Article 13 of the Law on Deposit Insurance, deposit insurance organizations shall be responsible for promptly reporting to the State Bank of Vietnam in cases where:

a) Participating organizations violate regulations on safety in banking operations or other banking laws;

b) The activities of participating organizations pose risks leading to inability to pay, loss of assets, or negative impacts on other credit institutions.

Article 10. Provision of Information from the State Bank of Vietnam to Deposit Insurance Organizations

1. Deposit insurance organizations may access data and information from the State Bank of Vietnam regarding participating organizations to perform tasks as prescribed in Article 13 of the Law on Deposit Insurance.

2. The specific information accessed from the State Bank's data includes:

a) Certain indicators reported under the statistical reporting system of the State Bank of Vietnam;

b) Financial reports of participating organizations;

c) Information on issuing, revoking licenses for establishment and operation of credit institutions, and foreign bank branches; information on temporarily suspending deposit-taking activities of participating organizations;

d) Information on splitting, merging, consolidating, dissolving, or liquidating participating organizations;

e) Information on special supervision of participating organizations according to the laws on special supervision of credit institutions;

f) Other information as specified by the State Bank of Vietnam at different periods.

3. The State Bank of Vietnam shall provide detailed guidance on the contents of information and methods of accessing information for deposit insurance organizations.

Article 11. Financial Support for Deposit Insurance Organizations when Capital is Insufficient to Pay Insurance

1. In cases where the capital of a deposit insurance organization is temporarily insufficient to pay insurance, the deposit insurance organization may receive support on a reimbursable basis from the state budget pursuant to a decision of the Prime Minister, or borrow from credit institutions or other organizations guaranteed by the Government.

2. Application for financial support:

The deposit insurance organization shall submit one set of application documents including the following materials to the State Bank of Vietnam:

a) A request for support from the state budget or a request for the Government to guarantee borrowing from credit institutions or other organizations signed by the authorized representative of the deposit insurance organization, specifying the amount of support needed from the state budget or the amount of borrowing needed with government guarantee; the duration of state budget support or the duration of the guarantee for borrowing, and other necessary details;

b) A plan for paying insurance money to insured persons;

c) A repayment plan for the supported capital from the state budget or for the borrowed amount from credit institutions or other organizations;

d) Any related documents (if applicable).

3. The State Bank shall take the lead and coordinate with the Ministry of Finance to submit to the Prime Minister for consideration and decision on providing financial support from the state budget to deposit insurance organizations or for considering and deciding on guarantees for deposit insurance organizations to borrow from credit institutions or other organizations.

Article 12. Delegation to Pay Insurance Money

1. The deposit insurance organization shall delegate the participating deposit insurance organization to pay the amount of insurance money to the insured depositor. The delegation must be carried out through a deposit insurance payment delegation contract in accordance with the provisions of the law.

2. The contents of the deposit insurance payment delegation contract must clearly state the responsibilities of the participating deposit insurance organization in using the amount transferred by the deposit insurance organization for timely payment, correct quantity, and correct recipients of the insurance money.

3. The participating deposit insurance organization that is delegated to pay the insurance money by the deposit insurance organization must meet the following conditions:

a) Adhering to restrictions to ensure safety in the operation of credit institutions for at least the last six months prior to the payment of insurance money;

b) Having a network located at suitable locations for the payment of insurance money.

Article 13. Receiving Insurance Money

When receiving insurance money, the insured depositor must present their identity card or passport. In cases where the recipient of the insurance money is a person authorized or a successor of the insured depositor, in addition to presenting their identity card or passport, they must also present documents proving their status as an authorized person or successor of the insured depositor as prescribed by law.

In cases of savings deposits, the insured depositor must present the savings passbook.

In cases of purchasing securities issued by the participating deposit insurance organization, the insured depositor must present the deposit certificate, promissory note, bill of exchange, or bond.

Article 14. Participation in Management, Liquidation of Assets, and Recovery of Insurance Money to be Paid

1. The deposit insurance organization participates in managing, liquidating assets, and recovering the insurance money to be paid during the process of handling the assets of the participating deposit insurance organization which is a credit institution, in accordance with the provisions of the law on bankruptcy of credit institutions.

2. The deposit insurance organization participates in managing, liquidating assets, and recovering the insurance money to be paid during the process of handling the assets of the participating deposit insurance organization which is a foreign bank branch, in accordance with the regulations of the State Bank of Vietnam on revoking licenses and liquidating assets of foreign bank branches.

Chapter III.
STATE MANAGEMENT OF DEPOSIT INSURANCE

Article 15. State Management Authority for Deposit Insurance

1. The Government uniformly manages state affairs concerning deposit insurance.

2. The State Bank of Vietnam:

a) Submitting to the Prime Minister for approval of the charter, amendments, and supplements to the charter of the deposit insurance organization, appointing, reappointing, dismissing, accepting resignation, rewarding, and disciplining the Chairman of the Board of Directors of the deposit insurance organization;

b) The State Bank of Vietnam is responsible before the Government for implementing state management over the activities of deposit insurance, participating deposit insurance organizations, and deposit insurance organizations; performing the function of representing the state's ownership in deposit insurance organizations; deciding the organizational structure of deposit insurance organizations; appointing, reappointing, dismissing, accepting resignation, rewarding, and disciplining members of the Board of Directors, General Director, Deputy General Director, and supervisory board members of deposit insurance organizations.

Article 16. Responsibilities of the Ministry of Finance

1. Taking the lead and coordinating with the State Bank of Vietnam to establish and issue financial systems for deposit insurance organizations.

2. Guiding, inspecting, and auditing the implementation of the financial system of deposit insurance organizations.

Article 17. Responsibilities of the Ministry of Labor - Invalids and Social Affairs

Guide, inspect, and supervise the implementation of labor policies and wage systems of deposit insurance organizations.

Article 18. Responsibilities of Ministries and Equivalent Ministries

Within their respective duties and authorities, Ministries and Equivalent Ministries shall be responsible for coordinating with the State Bank of Vietnam to implement state management of deposit insurance.

Article 19. Responsibilities of People's Committees at various levels

At all levels, People's Committees shall be responsible for coordinating with state management agencies to implement state management of deposit insurance at the local level within their respective duties and authorities.

Chapter IV.
IMPLEMENTING PROVISIONS

Article 20. Transitional Provisions

Deposit insurance certificates issued before the effective date of this Decree continue to be valid for use, except for deposit insurance certificates issued to organizations that are not required to participate in deposit insurance according to the Law on Deposit Insurance. Deposit insurance certificates issued to organizations that are not required to participate in deposit insurance according to the Law on Deposit Insurance cease to be valid for use.

Article 21. Effective Date

1. This Decree takes effect from August 19, 2013.

2. The provisions of Decree No. 89/1999/NĐ-CP dated September 1, 1999 on deposit insurance and Decree No. 109/2005/NĐ-CP dated August 24, 2005 amending and supplementing certain articles of Decree No. 89/1999/NĐ-CP cease to be effective, except as provided in Clause 3 of this Article.

3. The provisions on deposit insurance premiums and the amount of insurance paid under Decree No. 89/1999/NĐ-CP dated September 1, 1999 on deposit insurance and Decree No. 109/2005/NĐ-CP dated August 24, 2005 amending and supplementing certain articles of Decree No. 89/1999/NĐ-CP shall continue to be effective until the Prime Minister issues regulations on the framework of deposit insurance premiums and the limit of insurance payment according to the Law on Deposit Insurance.

Article 22. Responsibility for enforcement

1. The Governor of the State Bank of Vietnam is responsible for guiding this Decree.

2. The Ministers, Heads of Equivalent Ministries, Heads of Government Agencies, Chairmen of Provincial People's Committees, Chairmen of Municipal People's Committees directly under the Central Government, Chairmen of Management Councils, General Directors (Directors) of deposit insurance organizations, Chairmen of Management Councils, Members of Management Boards, General Directors (Directors) of organizations participating in deposit insurance are responsible for implementing this Decree./.