The State Bank of Vietnam, through Governor Nguyen Thi Hong, provided clarifications to the National Assembly during its debate on the amended Deposit Insurance Law bill, confirming that the draft would allow both flat-rate and differentiated (risk-based) deposit insurance premiums and would delegate the setting of premium levels to the governor. Under Article 19(1) of the draft, the governor would determine the deposit insurance premium rate and whether premiums are applied uniformly or on a differentiated basis in line with the characteristics of Vietnam’s credit institution system in each period. Vietnam currently applies a uniform premium, with a potential phased move to differentiated premiums once the necessary conditions are in place, aimed at incentivising better-performing institutions through lower deposit insurance costs. The SBV also indicated it would define the scope and content of deposit insurer inspections to avoid overlap with the SBV’s own supervision and other competent authorities’ inspection and oversight of credit institutions.
State Bank of Vietnam 2025-11-14
State Bank of Vietnam clarifies draft amended deposit insurance law would let the governor set flat or differentiated premiums
The State Bank of Vietnam, led by Governor Nguyen Thi Hong, clarified that the amended Deposit Insurance Law bill would permit both flat-rate and risk-based deposit insurance premiums, with the governor setting premium levels. The draft allows a shift from uniform to differentiated premiums to incentivize better-performing institutions. The SBV will define the scope of deposit insurer inspections to prevent overlap with its and other authorities' oversight of credit institutions.