The State Bank of Vietnam, acting on behalf of the Prime Minister, presented to the National Assembly a draft revised Deposit Insurance Law aimed at addressing implementation issues under the 2012 law and aligning the deposit insurance framework with the 2024 Law on Credit Institutions. The draft would broaden the operating toolkit of Vietnam Deposit Insurance, including more flexible premium-setting and enhanced powers to support institutions under early intervention or special control. Key proposals include empowering the State Bank of Vietnam Governor, in special cases when a payout obligation arises, to set a maximum payout limit up to the full amount of a depositor’s insured deposits at a participating institution. The draft would allow the Governor to set deposit insurance premiums and decide whether premiums are uniform or differentiated over time, and would permit temporary deferral of outstanding premium arrears accrued before an institution is placed under special control, subject to a repayment plan in the restructuring plan. It also specifies payout triggers, including approval of a bankruptcy plan or confirmation that a foreign bank branch cannot pay depositors, and suspension of deposit-taking for a specially controlled credit institution where accumulated losses exceed 100% of charter capital and reserve funds based on the latest audited financial statements. In addition, the deposit insurer would be able to provide special loans to participating institutions facing early intervention or special control and experiencing a bank run to support recovery or mandatory transfer plans, with discretion over whether loans are secured and whether they bear interest; where the insurer’s reserve fund is insufficient to pay depositors, it could receive a special loan from the central bank at 0% interest without collateral, alongside a plan to raise premiums to repay. The National Assembly’s Economic and Finance Committee broadly supported the direction but called for clarifications on fee calculation responsibilities and methodology, information-sharing and coordination in supervision, conditions for accessing state budget support versus borrowing (including from the State Bank of Vietnam), rules on payout-limit adjustments and any payouts above the limit, and governance arrangements in specially controlled people’s credit funds. The bill is now subject to the National Assembly’s legislative consideration alongside these review comments.
State Bank of Vietnam 2025-10-23
State Bank of Vietnam submits draft amendments to the Deposit Insurance Law expanding payout discretion and special lending tools
The State Bank of Vietnam presented a draft revised Deposit Insurance Law to the National Assembly to address issues under the 2012 law and align with the 2024 Law on Credit Institutions. Key proposals include expanding the Vietnam Deposit Insurance's toolkit, allowing flexible premium-setting, and empowering the Governor to set payout limits and premiums. The National Assembly’s Economic and Finance Committee supported the direction but requested clarifications on fee calculations, information-sharing, and governance arrangements.