There should be regulations to ensure the rights of depositors.

(Baonghean.vn) - That was the issue raised at the conference to collect comments on the draft Law amending and supplementing a number of articles of the Law on Credit Institutions organized by the Provincial National Assembly Delegation on the afternoon of October 13.

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Mr. Nguyen Thanh Hien - Member of the Provincial Party Executive Committee, Deputy Head of the Provincial National Assembly Delegation chaired the conference. Photo: Mai Hoa

At the conference, delegates agreed on the necessity of amending and supplementing a number of articles of the Law on Credit Institutions in order to address urgent and necessary issues arising in current banking credit activities; while ensuring consistency with the Constitution and related laws such as the Bankruptcy Law, Enterprise Law, etc.

Mr. Cao Van Hoi - Deputy Director of the State Bank of Nghe An Province Branch said that currently, the regulation of deposit insurance payment level is posing inadequacies, only paying 75 million VND/depositor; meanwhile, in reality, a person has many savings books with amounts of hundreds, even billions of VND.

On the other hand, the current deposit insurance settlement is done from the difference between asset sales and debt collection of the bank; however, when a credit institution falls into special control or declares bankruptcy, debt collection is very difficult, the time can last 10 or 20 years...

Therefore, according to Mr. Hoi, this amendment and supplement to the Law needs to have regulations on paying customers' deposits from the budget to create peace of mind for customers.

Agreeing with Mr. Cao Van Hoi's opinion, Ms. Le Thi Mau Ly - Deputy Director of BIDV Bank, Nghe An Branch, said that the Law amending and supplementing a number of articles of the Law on Credit Institutions needs to have regulations to ensure that depositors' rights are still fully exercised when the withdrawal deadline comes but the bank is under special control.

Mr. Cao Van Hoi - Deputy Director of the State Bank of Nghe An Province Branch gave his opinion at the conference. Photo: Mai Hoa

Some delegates also said that it is necessary to review and restructure weak credit institutions with special control mechanisms based on the principles of publicity and transparency...

Mr. Tran Van Duc - Bank for Agriculture and Rural Development, Nghe An Branch, said: The activities of credit institutions are greatly influenced by customer psychology, with large spillovers and chain effects. Therefore, it is necessary to put special controls in place when the budget is in difficulty; along with that, there is a form of restructuring credit institutions towards recovery or transfer, avoiding bankruptcy.

Some delegates also proposed the need to specifically regulate the rights and responsibilities of those participating in restructuring credit institutions under special control; compulsory transfer plans for credit institutions under special control...

Deputy Head of the Provincial National Assembly Delegation Nguyen Thanh Hien.

Mr. Nguyen Thanh Hien said that the provincial National Assembly delegation will compile all the information to send to the National Assembly Standing Committee, and at the same time serve as a basis for the delegation to participate in discussions at the 4th session of the 14th National Assembly, scheduled to open on October 23.

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