The State Bank of Vietnam (SBV) has presented to the National Assembly Standing Committee a draft revised Deposit Insurance Law intended to update the 2012 framework, strengthen depositor protection, and align deposit insurance rules with the 2024 Law on Credit Institutions, including deeper involvement of Deposit Insurance of Vietnam (DIV) in the handling of weak credit institutions. The draft law (eight chapters, 44 articles) would broaden DIV’s rights and duties, including the ability to inspect participating institutions under SBV-assigned plans, borrow special loans from SBV, and participate more directly in restructurings such as placing qualified personnel in the management of specially controlled People’s Credit Funds and supporting mandatory transfers. Premium collection would become more flexible, allowing the SBV Governor to set either a uniform or differentiated premium by period and to permit temporary premium deferrals for institutions under special control subject to repayment. Payout rules would be brought forward by allowing the insurance payment obligation to arise earlier, including when a bankruptcy plan is approved, when SBV confirms a foreign bank branch’s inability to pay, or when deposit-taking is suspended after accumulated losses exceed 100% of charter capital, with an option for the SBV Governor to approve full payout of insured deposits in special cases. The draft also expands DIV’s permitted investments (including in instruments issued by commercial banks with majority state ownership, and deposits placed at those banks) with SBV to set investment methods and risk governance, and provides for DIV special lending that may be unsecured and interest-free in run scenarios or to support recovery or mandatory transfer plans. In system-wide incidents or crises, the Government would be empowered to decide necessary measures and report to the National Assembly at the nearest session. The National Assembly’s Economic and Financial Committee agreed on the need for the revision but asked for further refinement on areas including role delineation to avoid overlap with supervisory functions, clearer rules on premium calculation and payout limits, explicit conditions for state support and borrowing, and more specific constraints and transparency for special lending and crisis provisions. The Government plans to submit the bill to the National Assembly’s 10th session (15th term) after further drafting work.
State Bank of Vietnam 2025-09-22
State Bank of Vietnam presents draft overhaul of deposit insurance law expanding Deposit Insurance of Vietnam powers and accelerating payouts
The State Bank of Vietnam proposed a draft revised Deposit Insurance Law to the National Assembly Standing Committee to update the 2012 framework and enhance depositor protection. Key changes include expanding the Deposit Insurance of Vietnam's (DIV) rights, flexible premium collection, and earlier payout rules. The National Assembly’s Economic and Financial Committee supports the revision but seeks further clarity on role delineation, premium calculation, and crisis provisions.