The State Bank of Vietnam (SBV) on September 6 issued Circular No. 24/2014/TT-NHNN, guiding deposit insurance activities.
Under the Circular, deposit insurance charges will be paid on a quarterly basis by credit institutions participating in deposit insurance to the Deposit Insurance of Vietnam (DIV).
The final due date will be the 20th of the quarter’s first month. In case this date falls on a weekend or public holiday, the final due date will be the next business day.
DIV will be obliged to pay insurance sums to credit institutions as soon as SBV issues a written notice of termination of special control of such credit institutions, or a written notice of non-application of measures to recover the solvency, while credit institutions covered by deposit insurance are still likely to go bankrupt or foreign bank branches participating in deposit insurance are regarded by SBV as being unable to pay deposits to their depositors.
Regarding the insurance sum payment procedures, within 10 working days from the date of receiving SBV’s notices, credit institutions must submit to DIV dossiers to request payment of deposit insurance sums.
Within 5 working days, DIV will examine documents and records included in request dossiers for determining insurance sums to be paid.
It, then, will devise a plan on insurance sum payment within 10 days after finishing the examination, and publicize a list of depositors who will receive insurance sums and payable insurance sums.
DIV will receive payments for insurance sums it has paid to insured depositors from liquidated assets of bankrupt credit institutions which will be divided in the order of asset division prescribed in the Bankruptcy Law.-
