Vietnam Prime Minister signed a decision on August 13 to set up the Deposit Insurance of Vietnam (DIV) and specify its functions and duties.—Photo radiovietnam

HA NOI (Biz Hub) — Vietnam Prime Minister signed a decision on August 13 to set up the Deposit Insurance of Vietnam (DIV) and specify its functions and duties.

Accordingly, the DIV has a charter capital of VND5 trillion granted by the State budget. It is headquartered in Hanoi and has representative offices & branches in a number of regions.

The Deposit Insurance of Vietnam is a state financial institution operating not-for-profit to protect the legitimate rights and interests of depositors; implement deposit insurance policy to maintain the stability of the system of credit institutions and to ensure the safe, healthy development of banking activities.

The DIV's activities must ensure capital adequacy; self-offset costs and be exempt from taxes under the provisions of law.

The DIV is responsible for formulating development strategy for deposit insurance and submit to the central bank and the Prime Minister for approval and implementation.

The DIV can participate in special control over organizations participating in the deposit insurance under the regulations of the SBV; join in the management & disposal of assets and recovery of insurance payable by institutions under the provisions of the law, etc.

The Prime Minister also approves the Charter on organisation and operation of the Deposit Insurance of Vietnam, which regulates the DIV's legal representative is Chairman of its Board of Directors (BOD).

The BOD has at maximum 7 members, including a Chairman appointed by the Prime Minister while the remaining members appointed by the Governor of the central bank. — StoxPlus/VNS