On September 06, 2014, the State Bank of Vietnam issued the Circular No. 24/2014/TT-NHNN guiding some contents in deposit insurance and this Circular is applied to the subjects such as the Deposit Insurance of Vietnam.
Institutions or organizations participating in the deposit insurance include commercial banks, branches of foreign banks, cooperative banks, people’s credit funds and microfinance institutions; insured depositors and organizations or individuals involved in the deposit insurance activities.
In accordance with this Circular, obligation to pay the insurance coverage shall be incurred from the time when the State Bank issues written notification to cancel the special control, to terminate or refuse the application of measures to regain the solvency after which the insured credit institutions are still in danger of insolvency, or when the State Bank issues a written confirmation to determine insured branches of foreign banks become insolvent to repay deposits to insured depositors.
Within a period of 10 (ten) working days from the moment when obligations to pay insurance coverage are incurred, the insured institutions must send documentation to the Deposit Insurance of Vietnam to claim their insurance coverage. Documentation of the request for the insurance coverage payment must be signed by representatives of the insured institutions.
Within a period of 05 (five) working days from the full receipt of documentation to claim insurance coverage according to regulations, the Deposit Insurance of Vietnam can proceed to examine relevant documents and records to determine the amount of insurance coverage payables.
Next, within a period of 10 (ten) working days from the completion date of examination, the Deposit Insurance of Vietnam must set up the payment plan to pay the insurance coverage to insured depositors; publicly notify the information about venue, time and mode of insurance coverage payment on three successive publication of central-governed newspapers and local newspapers at the area where its main office and branches of insured institutions are located, and also on an online newspaper in Vietnam; explicitly post the list of insured depositors and the amount of insurance coverage payment at each venue mentioned above.
The amount paid to the insured depositors, who have made their deposits at insolvent insured institutions, by the Deposit Insurance of Vietnam shall be based on the list of insured depositors and the amount of insurance coverage paid to each depositor. The Deposit Insurance of Vietnam shall be reimbursed for their payment of insurance coverage to insured depositors in order of asset value classification of insolvent insured credit institutions.
This Circular takes effect on October 24, 2014.
