Enhancing the legal framework for deposit insurance of Viet Nam in restructuring weak credit institutions

Abstract

The article analyzes the legal basis and practical implementation of the Law on Deposit Insurance 2012 and the requirements for amending and supplementing the Law on Deposit Insurance in the new context of the credit institution system, especially the requirement to restructure weak credit institutions according to the Law on Credit Institutions 2024 and the Government's policy orientation in the coming time. From there, based on international experience on target funds, diversification of safe investment channels, and the borrowing and repayment mechanism of the International Association of Deposit Insurers (IADI), the article points out the gaps and inadequacies relating to the financial mechanism, scope and tools for participating in handling credit institutions, the fee collection mechanism and the operational reserve fund, as well as regulations on the time of arising obligations and the time limit for insurance payment of Deposit Insurance of Vietnam (DIV). The article proposes solutions to amend and supplement the Law on Deposit Insurance to improve the financial capacity and proactiveness of the Deposit Insurance of Vietnam, thereby enhancing the level of depositor protection, consolidating public confidence and making practical contributions to the restructuring process of the credit institution system.