Nghe An Delegate: Need to protect depositors' rights when 'specially controlling' credit institutions

(Baonghean.vn) - On the 4th working day of the 4th session of the 14th National Assembly, National Assembly deputies of Nghe An province gave their opinions on a number of draft laws.

Scene of the discussion session of group 18 on the afternoon of October 26, the 4th working day, 4th session, 14th National Assembly. Photo: Contributor

Talking to reporters on the sidelines of the session, delegate Nguyen Thanh Hien - Deputy Head of the National Assembly Delegation of Nghe An province said that he basically agreed with the draft law and the report explaining, accepting and revising the draft law amending and supplementing a number of articles of the Law on Credit Institutions (CIs), and at the same time contributed some opinions to complete the draft law.

Regarding the content of the self-recovery plan and the content of the compulsory transfer plan for credit institutions under special control (stipulated in Point 5, Article 148a and Point 6, Article 151b), Mr. Hien said that the draft Law only focuses on protecting the rights of customers who are legal entities but still lacks individual customers who deposit money in cases where credit institutions are placed under "special control".

"In the case that a credit institution is placed under 'special control', and the customer is an individual and the withdrawal deadline comes, will the State Bank allow the credit institution to pay or not? If it does not pay, the credit institution will violate the law," this delegate raised the issue, and at the same time requested the Drafting Committee to study and supplement regulations on protecting the rights of depositors in this case.

Delegate Nguyen Thanh Hien speaks at the group discussion session. Photo: Contributor

Expressing opinions related to resources for implementing the restructuring plan to ensure the feasibility of the provisions in the draft Law, the Deputy Head of the National Assembly Delegation of Nghe An agreed with the plan to remove the provisions on measures to support payment of excess deposits for individual depositors when implementing the bankruptcy plan of credit institutions, and at the same time, added a provision assigning the Government to decide on applying special measures and report to the National Assembly at the nearest session at Point b, Clause 1, Article 146 of the draft Law.

However, this delegate further wondered: “The issue we need to pay attention to and clarify is what is that special measure? What resources does the Government have to apply that special measure? Is the Government allowed to use the State budget? In my opinion, the draft Law must clearly stipulate it.”

Mr. Hien also expressed concern about the level of support the Government provides to individual customers (people) when credit institutions go bankrupt, arguing that this is a social issue that greatly affects people's lives and social order and safety.

Therefore, Nghe An delegates proposed that it is necessary to supplement measures to support credit institutions, including the participation of the Vietnam Deposit Insurance in purchasing long-term government bonds to increase tier 2 capital for credit institutions, contributing to enhancing the role of deposit insurance in participating in supporting financial resources for credit institutions to restructure weak credit institutions.

Also on the 4th working day, at the group discussion session, delegate Tran Van Mao - Deputy Head of the Provincial National Assembly Delegation representing the Nghe An National Assembly Delegation gave comments on the draft Law amending and supplementing a number of articles of the Law on Representative Agencies of the Socialist Republic of Vietnam Abroad.

PV-CTV