Decree No. 68/2013/ND-CP of June 28, 2013, detailing and guiding implementation of the Law on deposit insurance

DECREE

DETAILING AND GUIDING IMPLEMENTATION OF THE LAW ON DEPOSIT INSURANCE

Pursuant to the Law on Government organization date December 25, 2001;

Pursuant to the Law on deposit insurancedated June 18, 2012;

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

The Government promulgates the Decree detailing and guiding implementation of the Law on deposit insurance.

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree details and guides implementation of the Law on deposit insurance.

Article 2. Subjects of application

This Decree applies to deposit insurers, organizations engaging in deposit insurance, persons who are insured deposit and other organizations and individuals involving deposit insurance operation.

Article 3. Deposit insurers

1. The deposit insurers are the State-run financial organizations which are established and defined functions and tasks by the Prime Minister at the request of the Governor of the State bank of Vietnam.

2. The deposit insurers are the State-run financial organizations which operate for non-profit purposes, ensure capital safety and cover their expenses with their own revenues. Revenues of the deposit insurers are exempted from tax payment of all kinds.

3. The deposit insurers are entitled to deduct partly their revenues from investment of temporarily idle capital for offsetting expenses The Ministry of Finance shall assume the prime responsibility for, and coordinate with the State bank of Vietnam in defining the specific deduction level.

Article 4. Organizations engaging in deposit insurance

1. Organizations engaging in deposit insurance are credit institutions, foreign banks’ branches which receive deposit of individuals, including commercial banks, cooperative banks, People’s credit funds and foreign banks’ branches established and operating in accordance with law on credit institutions.

2. Microfinance organizations must engage in deposit insurance for deposits of individuals including voluntary deposits of microfinance clients, excluded compulsory saving deposit in accordance with regulation of microfinance organizations.

3. Policy banks do not have to engage in deposit insurance.

Article 5. Engaging in deposit insurance

Credit institutions and foreign banks’ branches as prescribed in Article 4 of this Decree must engage in deposit insurance and list publicly copy of certificate of engaging in deposit insurance at their head offices, branches and trading offices where receive deposits of individuals.

Chapter 2.

DEPOSIT INSURANCE OPERATION

Article 6. Grant of certificcte of engaging in deposit insurance

1. Within 15 (fifteen) days before the beginning day of operation, organizations engaging in deposit insurance must submit full dossier requesting for grant of certificate of engaging in deposit insurance as prescribed in clause 3 Article 14 of Law on deposit insurance to deposit insurers.

2. Within 05 (five) working days, after receiving full dossier requesting for grant of certificate of engaging in deposit insurance, deposit insurers are responsible for grant of certificate of engaging in deposit insurance.

Article 7. Re-grant of certificate of engaging in deposit insurance

1. Organizations engaging in deposit insurance may be re-granted certificate of engaging in deposit insurance when they are allowed to restore operation of receiving deposits of individuals by the State bank. Within 05 (five) working days, after receiving application for re-grant of certificate of engaging in deposit insurance and copy of written permission of the State bank about restoring operation of receiving deposits of individuals, deposit insurers are responsible for re-grant of certificate of engaging in deposit insurance.

2. Certificates of engaging in deposit insurance which are lost, torn or damaged may be re-granted within 05 (five) working days, after receiving application for re-grant of certificate of engaging in deposit insurance of organizations engaging in deposit insurance.

3. Organizations engaging in deposit insurance will be re-granted certificate of engaging in deposit insurance in case there is change of information in certificate of engaging in deposit insurance. Within 05 (five) working days, after receiving application for re-grant of certificate of engaging in deposit insurance and copy of document proving change of information of organization engaging in deposit insurance, deposit insurers are responsible for re-grant of certificate of engaging in deposit insurance.

Article 8. Principle of information provision between the State bank of Vietnam and deposit insurers

1. To ensure truthfulness, objectiveness, timeliness and fullness as prescribed.

2. Organizations which are supplied information are responsible for management, use and keeping confidentiality of information in accordance with law.

3. The provision of information under the list of state secret shall comply with law on state’s secret protection.

Article 9. Information provision of the deposit insurers to the State bank of Vietnam

1. The deposit insurers shall report the State bank of Vietnam about information as prescribed in clause 1 Article 33 of Law on deposit insurance.

2. When implement tasks specified in clause 10 Article 13 of Law on deposit insurance, deposit insurers are responsible for reporting timely to the State bank of Vietnam in case:

a) The organizations engaging in deposit insurance violate provision on safety in bank operation or violate other provisions of law on bank;

b) Operation of the organizations engaging in deposit insurance have risk of leading to losing affordability, loss of assets or negative impacts to other credit institutions.

Article 10. Information provision of the State bank of Vietnam to the deposit insurers

1. The deposit insurers are allowed to access information data of the State bank of Vietnam about organizations engaging in deposit insurance for implementing tasks as prescribed in Article 13 of the Law on deposit insurance.

2. Information allowed to access from information data of the State bank is specified as follows:

a) Some report norms under the report and statistical regime of the State bank of Vietnam;

b) Financial statement of organizations engaging in deposit insurance;

c) Information about grant of permit, withdrawal of permit for establishment and operation of credit institutions, permit for establishment of foreign banks’ branches; information about temporary suspension of receiving deposit applicable to organizations engaging in deposit insurance;

d) Information about division, separation, consolidation, merger, dissolution, bankruptcy of organizations engaging in deposit insurance;

dd) Information about special control of organizations engaging in deposit insurance as prescribed by law on special control applicable to credit institutions;

e) Other information in accordance with regulation of the State bank of Vietnam in each period.

3. The State bank of Vietnam shall guide specifically about content of information and method of accessing to information of the deposit insurers.

Article 11. Financial support for the deposit insurers in case where capital sources of the deposit insurers are not enough to pay insurance amount

1. In case where capital sources of deposit insurers temporary is not enough to pay insurance amount, the deposit insurers may be received support according to the refundable principle from the State budget under decision of the Prime Minister or permitted to borrow with guarantee of Government from credit institutions or other organizations.

2. Dossier of request for financial support:

The deposit insurers send 01 set of dossier including the following documents to the State bank of Vietnam:

a) Written request for support from the State budget or request for Goverment's guarantee in order to borrow from credit institutions or other organizations signed by competent person of deposit insurer, in which clearly state the amounts need be supported from the State budget, or need be guaranteed by the Government for loans from credit institutions or other organizations; support duration from the State budget or duration of loan guarantee and other necessary contents;

b) Plan on paying insurance amount to the insured persons;

c) Plans on refund of capital sources supported from the State budget or refund of loans from credit institutions or other organizations;

d) Other relevant documents (if any).

3. The State bank shall assume the prime responsibility for, and coordinate with the Ministry of Finance in submitting to the Prime Minister for consideration, decision on support from the State budget for the deposit insurers or consideration, decision on guarantee for the deposit insurers to borrow from credit institutions or other organizations.

Article 12. Authorization for insurance payment

1. The deposit insurers may authorize organizations engaging in deposit insurance to pay the insurance amount to the insured-deposit persons. The authorization must be adopted by authorization contract of insurance payment in accordance with law.

2. Content of authorization contract must clearly state liability of organizations engaging in deposit insurance in use of amount transferred by the deposit insurers for payment on time, with right quantity, and to right objects enjoyed insurance amount.

3. Organizations engaging in deposit insurance which are authorized by the deposit insurers in payment of insurance amount must satisfy conditions:

a) To abide by limitations for safety assurance in operation of credit institutions within a minimum 6-month duration before time of insurance payment;

b) To have a network for payment of insurance amount located in suitable places.

Article 13. Receipt of insurance amount

When receiving insurance amount, the deposit-insured person must present ID card or passport. If the receiver is authorized persons or heir of the deposit-insured person, apart from presenting ID card or passport, the receiver must present documentary evidence on legal status of authorized persons or heir of the deposit-insured person in accordance with law.

In case of saving deposit, the deposit-insured person must present saving card.

In case of buying valuable papers that are issued by organizations engaging in deposit insurance, the deposit-insured person must present deposit certificates, promissory note, bills or bonds.

Article 14. Participation in management, liquidation of assets and recovery of payable insurance amount

1. The deposit insurers shall participate in management, liquidation of assets and recovery of payable insurance amount in the course of handling assets of organizations engaging in deposit insurance being credit institutions in accordance with law on bankruptcy applicable to credit institutions.

2. The deposit insurers shall participate in management, liquidation of assets and recovery of payable insurance amount in the course of handling assets of organizations engaging in deposit insurance being foreign banks’ branches in accordance with regulation of the State bank of Vietnam on withdrawal of permit and asset liquidation of foreign banks’ branches.

Chapter 3.

STATE MANAGEMENT ON DEPOSIT INSURANCE

Article 15. State management agencies on deposit insurance

1. The Government implements unified state management on deposit insurance.

2. The State bank of Vietnam:

a) To submit to the Prime Minister for approval of charters, amendment and supplementation of charters of the deposit insurers, appointment, re-appointment, dismissal, acceptance of resigning, commend and reward, or discipline involving chairperson of Board of Directors of the deposit insurers;

b) The State bank of Vietnam shall be responsible before the Government for state management on deposit insurance operation, organizations engaging in deposit insurance, deposit insurers; implement function of representative of state owner for deposit insurers; decide organizational structure of deposit insurers; appoint, re-appoint, dismiss, accept resigning, reward, discipline members of Board of Directors, General Directors, Deputy General Directors and supervisors of deposit insurers.

Article 16. Responsibilities of the Ministry of Finance

1. To assume the prime responsibility for, and coordinate with the State bank of Vietnam in elaborating, promulgating financial regime of deposit insurers.

2. To guide, examine, inspect implementation of financial regime of deposit insurers.

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

To guide, examine, inspect implementation of policies, regimes on labor and wage of the deposit insurers.

Article 18. Responsibilities of relevant Ministries and Ministerial-level agencies

Ministries and Ministerial agencies shall, within their tasks and powers, coordinate with the State bank of Vietnam in state management on deposit insurance.

Article 19. Responsibilities of People’s Committees at all levels

People’s Committees at all levels shall, with their tasks and powers, coordinate with state management agencies in implementing state management on deposit insurance in localities.

Chapter 4.

IMPLEMENTATION PROVISIONS

Article 20. Transitional provisions

Certificates of deposit insurance which are granted before the effective day of this Decree will continue having use value, except for certificates of deposit insurance which have been granted for organizations not having to engage in deposit insurance as prescribed by Law on deposit insurance. Certificates of deposit insurance which have been granted for organizations not having to engage in deposit insurance as prescribed by Law on deposit insurance will be invalid.

Article 21. Effect

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

2. Provisions of the Decree No. 89/1999/ND-CP dated September 01, 1999, on deposit insurance and the Decree No. 109/2005/ND-CP, dated August 24, 2005, amending and supplementing a number of articles of the Decree No. 89/1999/ND-CP shall cease to be effective, except for case specified in clause 3 of this Article.

3. Provisions on deposit insurance premium, insurance amount that is refunded in the Decree No. 89/1999/ND-CP dated September 01, 1999, on deposit insurance and the Decree No. 109/2005/ND-CP, dated August 24, 2005, amending and supplementing a number of articles of the Decree No. 89/1999/ND-CP shall continue taking effect untill the Prime Minister promulgates provisions on deposit insurance premium framework, limitation of refunded insurance amount as prescribed in the Law on deposit insurance.

Article 22. Responsibility for implementation

1. The Governer of the State bank of Vietnam shall implement this Decree.

2. Ministers, heads of ministerial equivalent bodies, heads of Governmental agencies, chairmen of People’s Committees of provinces and cities under central authority, and the chairmen of boards of management, General Directors (Directors) of deposit insurers, the chairmen of boards of management, of Member assembly, General Directors (Directors) of organizations engaging in deposit insurance shall be responsible for the implementation of this Decree.