Changes to bank deposit insurance
The State Bank of Vietnam has recently announced the draft decree on deposit insurance amending Decree 89 issued in 1999.
Accordingly, the maximum deposit insurance coverage including both principal and interest increases from 30 million dong to 50 million dong. Additionally, subjects of application of deposit insurance is also extended to individuals being co-owners of deposits, households, cooperatives, private businesses, and joint venture companies while the current regulation include only individual deposits.
According to the SBV, the 30 million dong deposit insurance coverage was built in 1999 when the average income per capita per year was only five million dong while the average income per capita per year by June 2004 increased to eight million dong. Also, it is required to expand subject of deposit insurance to small businesses in an effort to encourage usage of deposit accounts and in accordance with international rules.
