Thông tư 24/2014/TT-NHNN hướng dẫn về hoạt động bảo hiểm tiền gửi

THE STATE BANK OF VIETNAM

Circular No. 24/2014/TT-NHNN dated September 06, 2014 of the State Bank of Vietnam guiding some contents in deposit insurance

Pursuant to the Law on the State Bank of Vietnam No.46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Institutions No.47/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Deposit Insurance No.06/2012/QH13 dated June 18, 2012;

Pursuant to the Government’s Decree No.68/2013/ND-CP dated June 28, 2013 on providing instructions on the implementation of the Law on Deposit Insurance;

Pursuant to the Government s Decree No. 156/2013/ND-CP dated November 11, 2013 on defining the function, task, power and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Department of Legal Affairs;

The Governor of the State Bank of Vietnam hereby promulgates the Circular on defining certain contents pertaining to the deposit insurance.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Circular provides instructions on carrying out certain activities regarding the deposit insurance such as the determination of contents of the Certificate of Deposit Insurance; issuance and revocation of the Certificate of Deposit Insurance in case of the merger and consolidation of insured institutions; opening and use of the insurance deposit account opened at banks and the State Bank of Vietnam (hereinafter referred to as the State Bank); purchase of treasury bills issued through the State Bank.

Article 2. Subject of application

This Circular is applied to the following entities:

1. The Deposit Insurance of Vietnam.

2. Institutions or organizations participating in the deposit insurance include commercial banks, branches of foreign banks, cooperative banks, people s credit funds and microfinance institutions (hereinafter referred to as insured institution).

3. Insured depositors.

4. Organizations or individuals involved in the deposit insurance activities.

Chapter II

SPECIFIC PROVISIONS

Article 3. Contents of the Certificate of deposit insurance

1. The Certificate of Deposit Insurance is composed of the following information:

a) Name of the insurer;

b) Name of the insured institution;

c) Other relevant contents that must be properly provided in accordance with the regulations enforced by the Deposit Insurance of Vietnam.

2. Within a period of 15 days from the date on which any amendment to any content or information of the Certificate of Deposit Insurance as prescribed in Point b Clause 1 of this Article, insured institutions must request the re-issuance of the Certificate of Deposit Insurance under regulations specified in Clause 3 Article 7 of the Government’s Decree No.68/2013/ND-CP dated June 28, 2013 on providing instructions on the implementation of the Law on deposit insurance.

3. If the Deposit Insurance of Vietnam changes their Certificate template, they must notify the insured institutions to replace the old one.

Article 4. Issuance and revocation of the Certificate of Deposit Insurance in case of the merger and consolidation of insured institutions

1. The Deposit Insurance of Vietnam must revoke the Certificate of Deposit Insurance issued to the insured acquirees when the State Bank has already revoked their Establishment and Operation License.

2. The insured acquirers must follow procedures for applying for the reissuance of the Certificate of Deposit Insurance if they make any change to the information provided in the current Certificate of deposit insurance as stipulated in Clause 2 Article 3 of this Circular.

3. The newly-established institutions after the merger or consolidation must follow procedures for applying for the issuance of the Certificate of Deposit Insurance as prescribed in Article 14 of the Law onDeposit Insurance

Article 5. Copy of the Certificate of Deposit Insurance publicly posted at the insured institutions

1. Copy of the Certificate of deposit insurance posted at the insured institutions, prescribed in the regulations specified in Article 15 of the Law on Deposit Insurance, is a duplicated form issued by the Deposit Insurance of Vietnam from their master register.

2. The Deposit Insurance of Vietnam issues copies of the Certificate of Deposit Insurance, depending on the number of transaction offices of the insured institutions legally authorized to receive deposits from individuals.

3. Documentation of request for the issuance of copies of the Certificate of Deposit Insurance must include:

a) A written request for the issuance of copies of the Certificate of Deposit Insurance, which must clearly state how many copies of the Certificate of Deposit Insurance are required;

b) List of depository transaction offices that have yet to keep any copy of the Certificate of Deposit Insurance to serve the posting purpose;

c) A copy of the State Bank’s written consent to the establishment of transaction offices who require copies of the Certificate of Deposit Insurance.

4. If there is any demand for copies of the Certificate of Deposit Insurance, the insured institutions must formulate documentation as prescribed in Clause 3 of this Article and send it directly or by post to the Deposit Insurance of Vietnam.

Within a period of 03 (three) working days from the receipt of entire documentation, the Deposit Insurance of Vietnam must consider and compare submitted documents with those recorded in the master register to issue copies of the Certificate of Deposit Insurance to the insured institutions. The copied contents must match the contents available in the master register.

Article 6. Deadline for the deposit insurance premium’s payment

Deposit insurance premium is calculated and paid every quarter of a fiscal year. On 20thday of the first month of a payment quarter at the latest, the insured institutions must pay deposit insurance premium to the Deposit Insurance of Vietnam.    If the final date on which due payment of insurance premium must be made is a holiday or day off, the insured institutions must fulfill their payment obligations at a consecutive date.

Article 7. Calculation of deposit insurance premium

1. Calculation of deposit insurance premium during a payment quarter is based on all average balances of an insured deposit made at an insured institution in the preceding quarter ahead of the quarter of insurance premium payment.

2. Amount of deposit insurance premium payables in a payment quarter is calculated in the following formula:

P =

Where:

- P: amount of deposit insurance premium payables in the quarter of insurance premium payment.

- S0: amount of balances of insured deposits in the beginning of first month of preceding quarter ahead of the quarter of insurance premium payment.

- S1, S2, S3: amount of balances of insured deposits at the end of first, second and third month of the preceding month ahead of the quarter of insurance premium payment.

- m: amount of deposit insurance premium payables.

3. If insured institutions calculate and pay premiums for the first quarter’s participation in the deposit insurance, the following formula shall be applicable:

P =

Where:

- P: amount of deposit insurance premium payables in the first quarter.

- Si: amount of balances of insured deposits in day i (i=1 →n); S1: amount of balances of insured deposits at the end of the first day when deposits are made; Sn: amount of balances of insured deposits at the final day of first quarter).

- m: amount of deposit insurance premium payables.

4. Insured institutions after the merger or consolidation must apply the formula for calculating the deposit insurance premium as prescribed in Clause 2 of this Article in which S0 representsthe total amount of balances of insured deposits of insured institutions participating in the merger or consolidation in the beginning of the first month of the preceding quarter ahead of the quarter of insurance premium payment; S1, S2, S3 represent total amount of balances of insured deposits of insured institutions and merger or consolidation at the end of the first, second and third month of the preceding quarter ahead of the quarter of insurance premium payment.

5. Amount of balances of insured deposits, deposit insurance premium and surcharges on deficient or late payments shall be rounded to the nearest thousand in VND unit following the principle:

a) Greater than or equal to (≥) VND 500 shall be rounded to VND 1,000.

b) Less than (<) VND 500 shall be rounded to VND 0.

Article 8. Time of incurred obligation to claim insurance coverage

1. 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.

2. The State Bank’s written notification to cancel the special control, to terminate or refuse the application of measures to regain the solvency, prescribed in Clause 1 of this Article, must clarify the insured credit institutions’ failure to regain their solvency (or in danger of insolvency) as a basis for the fulfillment of payment obligations to the insured depositors.

Article 9. Procedures for insurance coverage claims

1. 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 in accordance with regulations specified in Clause 2 of this Article, including:

a) Written request for insurance coverage claims according to the form regulated by the Deposit Insurance of Vietnam;

b) List of insured depositors according to the form regulated by the Deposit Insurance of Vietnam, which clearly specifies the amount of insured deposits (including principal and interest) and debts of the insured institutions (if any, including principal and interest) to be paid to each insured depositor by the date on which obligations to pay insurance coverage by the insured institutions are incurred; the amount of insurance coverage to be paid to each insured depositor.

c) A copy of the State Bank’s written notification to cancel the special control, to terminate or refuse the application of measures to regain the solvency or a written confirmation to determine the insolvency of insured branches of foreign banks to repay deposits to insured depositors in accordance with regulations specified in Article 8 of this Circular.

2. Legal representatives of insured institutions must follow procedures for insurance coverage claims:

a) After 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, the legal representatives of insured institutions continue to be authorized to follow procedures for requesting the Deposit Insurance of Vietnam to pay the insurance coverage to the insured depositors.

b) If the insured institutions do not have legal representatives or when necessary, the State Bank must designate an official of the insured institutions or of the State Bank as the legal representatives of the insured institutions to follow procedures for insurance coverage claims.

3. Within a period of 05 (five) working days from the full receipt of documentation to claim insurance coverage according to regulations specified in Clause 1 of this Article, the Deposit Insurance of Vietnam can proceed to examine relevant documents and records to determine the amount of insurance coverage payables.

The insured institutions are responsible to provide documents and records required by the Deposit Insurance of Vietnam to serve the purposes of examination and determination of the amount payables.

If there is any sign of violations during the examination of documents and records to determine the amount payables beyond their scope of administrative competencies, the Deposit Insurance of Vietnam must inform and petition the State Bank to consider, examine, inspect and handle these violations.

Depending on the result of examination conducted by the Deposit Insurance of Vietnam and documentation of insurance coverage claim submitted by the insured institutions, the Deposit Insurance of Vietnam shall compile a list of insured depositors and the amount of insurance coverage paid to each insured depositor.

4. Within a period of 10 (ten) working days from the completion date of examination according to the regulations specified in Clause 3 of this Article, 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.

Article 10. Reclaiming the amount of insurance coverage from the insured institutions

1. From the date on which the Deposit Insurance of Vietnam becomes the creditor of insured institutions as stipulated in Clause 1 Article 28 of the Law on the deposit insurance, the Deposit Insurance of Vietnam is eligible to have their rights and fulfill their obligations of a creditor in accordance with legal regulations.

2. 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 according to regulations specified in Clause 4 Article 9 of this Circular. 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 in accordance with regulations specified in the Bankruptcy Law.

Article 11. Opening and using the deposit insurance account of the Deposit Insurance of Vietnam at the State Bank

1. The Deposit Insurance of Vietnam is eligible to open demand deposits at banks and is only allowed to use these accounts as the methods of payment for relevant activities of the Deposit Insurance of Vietnam. The Deposit Insurance of Vietnam is not permitted to make any deposit at credit institutions and branches of foreign banks.

2. The Deposit Insurance of Vietnam, when opening their deposit accounts at banks, shall be paid the interest rate determined by these banks, which conforms to regulations on the interest rate announced by the State Bank over a specific period.

Article 12. Opening the deposit insurance account at the State Bank

1. The Deposit Insurance of Vietnam is entitled to open the deposit account at the State Bank for their temporarily unused funds and is paid interests at the rate decided by the Governor of the State Bank and applied for each period.

2. Procedures for opening the account of the Deposit Insurance of Vietnam at the State Bank shall adhere to the regulations on opening the demand accounts applied to credit institutions and branches of foreign banks at the State Bank.

Article 13. Purchase of the treasury bill issued through the State Bank

1. Deposit Insurance of Vietnam is eligible to use the temporarily unused funds to purchase the Treasury bill issued through the State Bank.

2. The Deposit Insurance of Vietnam’s purchase of treasury bills issued through the State Bank shall adhere to the same regulations, which are applied to credit institutions, regarding the State Bank’s issuance of the treasury bills. Deposit Insurance of Vietnam is allowed to receive returns at maturity, perform the purchase or sale transactions of treasury bills from the State Bank with commercial banks and financial institutions.

Chapter III

IMPLEMENTATION ORGANIZATION

Article 14. Responsibilities of the State Bank’s affiliates

1. Bank Supervision and Inspection Authorities:

a) Inspect and handle violations and settle complaints and accusations against all issues regarding the deposit insurance;

b) Inspect and supervise the Deposit Insurance of Vietnam to ensure the compliance with legal regulations on deposit insurance;

c) Direct and cooperate with relevant agencies to inspect the use of temporarily unused funds of the Deposit Insurance of Vietnam according to the laws on deposit insurance.

2. Director of the Department of Financial Policy:

Direct and cooperate with relevant agencies to counsel the Governor of the State Bank to determine the rate of interest on deposits owned by Deposit Insurance of Vietnam in the State Bank.

3. Transaction offices:

Guide Deposit Insurance of Vietnam to open the deposit account in the State Bank, purchase the Treasury bill issued through the State Bank according to the regulations specified in this Circular and other legal regulations.

4. Branches of the State Bank of centrally-affiliated cities and provinces:

Inspect and handle violations as well as handle complaints or denunciation regarding the deposit insurance in their administrative area.

Article 15. Implementation duties and responsibilities

1. This Circular comes into effect from October 24, 2014.

2. Clause 2 Section 1, 2, 3, 4, 5 and 6 of the Circular No.03/2006/TT-NHNN dated April 25, 2006 on providing instructions on certain contents of the Government’s 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 on amending certain provisions of the Decree No.89/1999/ND-CP.

Article 16. Implementation duties and responsibilities

1. Board of Directors of Deposit Insurance of Vietnam and General Director of Deposit Insurance of Vietnam who are assigned proper functions, tasks and powers, take responsibility to provide instructions on or implement this Circular.

2. The Chief of Staff, the Director of the Department of Legal Affairs, the Heads of the State Bank’s affiliates, the Director of the State Bank s braches of centrally-affiliated cities and provinces, the President of the Board of Directors, the President of the Board of Members, the General Director (Director) of the insured institutions, the President of the Board of Directors and the General Director of Deposit Insurance of Vietnam take full responsibility for the implementation of this Circular./.

For the Governor

The Deputy Governor

Nguyen Phuoc Thanh