Bank restructuring and depositor rights
(Baonghean.vn) Restructuring the banking system is a hot topic in economic and financial forums of experts. This is also an issue that many people and society are interested in, especially the issue of customer and depositor rights.
In the integrated economy, the need for banking transactions is becoming increasingly necessary in people's modern lives. Customers and depositors always consider choosing a modern, reputable bank that is strong enough to meet their needs and interests.
Ensuring rights, customers coming to banks for transactions are increasing. Photo: Quynh Lan
Therefore, the restructuring of the banking system must always be oriented towards the legitimate rights and interests of depositors. Customers will be provided with a full package of advanced financial and banking services with diverse products and services, specifically: Attractive savings programs, preferential credit support packages that bring many practical benefits to customers with a new modern transaction model according to international standards; a modern management and banking transaction model that is consistent throughout the system, with an open, convenient, friendly and safe space. Moreover, with a modern technology platform, pioneering the breakthrough development of banking technology products, online payments, interbank money transfers via cards..., with high security means, customers can transact with the bank anytime, anywhere conveniently and quickly.
Regarding the restructuring principle, the Government affirmed that it will restructure credit institutions in the direction of reasonable increase in scale, increasing operational efficiency, management and capital use. This process will be implemented with a roadmap and the Government commits to not allowing a collapse in the banking system, not affecting the legitimate rights of depositors. Currently, the State Bank (SBV) has begun the process of restructuring the commercial banking system by deciding to allow three joint stock commercial banks, De Nhat, Viet Nam Tin Nghia and Saigon, to merge with the participation of the Bank for Investment and Development (BIDV). Accordingly, the Board of Directors of these banks met and agreed to "voluntarily merge to promote each other's strengths, support each other, and at the same time reduce operating costs to create a new bank that is stronger in terms of management capacity, finance and a wider operating network".
Regarding deposit insurance, according to the provisions of Decree 109/2005/ND-CP of the Government on deposit insurance, the current deposit insurance level is 50 million VND. In case a bank is dissolved or bankrupt, depositors with deposits up to 50 million VND will be paid 100% by the Deposit Insurance; the amount exceeding 50 million VND will be received by the depositor during the liquidation process according to the provisions of the law on bankruptcy. However, the Government's policy of restructuring the banking system and the State Bank do not mention the possibility of bankruptcy of some banks. That is, if people have deposits in a weak bank, and that bank has to be restructured (the worst case is to merge with another bank), then that deposit will still be preserved. And this is guaranteed by the State, the possibility of bankruptcy will not occur. Therefore, depositors can rest assured and trust the Party's policies and the State's laws on Deposit Insurance, and should not be alarmed by false rumors.
Thus, the Government and the State Bank will fulfill their responsibilities to the country in the process of restructuring the banking system, with the ultimate goal of protecting the interests of depositors.
Nguyen Xuan Toan
