Vietnam Banks Likely to Pay Deposit Insurance Premiums According to Their Creditworthiness: Draft Law
Credit institutions are likely to be charged different premiums according to their creditworthiness.
Vietnam law makers discussed a draft law on deposit insurance yesterday, initiating an idea that credit institutions should be charged different premiums according to their creditworthiness to ensure fairness and enhance their operational efficiency, the local media DVT.vn reported.
The approach is “feasible”, said the National Assembly’s Standing Committee (NASC), explaining that in early this year, the central bank had already classified credit institutions according to their creditworthiness.
The majority of Congressmen also agreed that only deposits in domestic currency should be insured against banks’ solvency. Besides, the central bank should be authorised to decide on the deposit insurance premiums and the prime minister would set the upper premium thresholds for specified periods upon the recommendations of the SBV.
Some suggested the prime minister should specify and adjust deposit insurance coverage limit in certain periods upon request of the central bank. Yet, in the long run, it’s necessary to specify an insurance coverage limit in the law.