The current Law on Deposit Insurance empowers the Deposit Insurance of Vietnam (DIV) to monitor and examine compliance with legal regulations on deposit insurance. In practice, the DIV annually develops examination plans and carries out on-site examinations at approximately 300 insured institutions. The DIV monitors and examines compliance with the Law on Deposit Insurance and recommends that the SBV take measures against violations. The scope of the examination includes: (i) compliance with regulations on the application for, re-issuance, and disclosure of the Certificates of Deposit Insurance Participation; (ii) assessment and payment of deposit insurance premiums; (iii) acceptance of insured deposits; and (iv) provision of information on insured deposits and other data and reports as requested by the DIV.

In addition to examinations conducted under the Law on Deposit Insurance, on March 12, 2019, the Prime Minister issued Directive No. 06/CT-TTg, assigning the DIV the task of collaborating with and supporting the SBV in the examination and supervision of People's Credit Funds (PCFs). Furthermore, the Deposit Insurance Development Strategic Plan through 2025, with a vision to 2030, issued together with Decision No. 1660/QD-TTg on December 30, 2022, outlines the task of studying and proposing amendments to the Law on Deposit Insurance to include provisions on the rights and obligations of the deposit insurer in assisting the SBV’s examination and supervision of PCFs.

Based on the Prime Minister's directives, during 2019–2025, the SBV piloted an assignment for the DIV to conduct examinations on compliance with banking safety regulations at 354 PCFs. The examination scope covered: (i) deposit-mobilising activities; (ii) management and use of important printed instruments; (iii) compliance with prudential ratios; and (iv) lending activities.

According to the SBV's assessment, the DIV successfully completed these examinations, fully meeting the SBV's requirements for both content and timelines. Through this work, the DIV identified various shortcomings among insured institutions in complying with the Law on Deposit Insurance, as well as SBV regulations related to the mobilisation and management of insured deposits and important printed instruments. The DIV also pinpointed root causes and provided recommendations to both the examined entities and the SBV for timely correction and enforcement. Additionally, the DIV detected inconsistencies in mechanisms and policies and submitted proposals to competent authorities recommending amendments and supplements to strengthen oversight and promote the safe and sound development of insured institutions.

This practical evidence demonstrates that the DIV possesses the requisite capacity to fulfil the examination responsibilities under the draft Law on Deposit Insurance (amended).

After 12 years of implementation, the Law on Deposit Insurance is now under review for revision to ensure the effectiveness of the deposit insurance policy, better protect depositors’ rights, contribute to the stability of the credit institution system, and support safe and sound banking operations.

In addition to existing provisions stipulating the monitoring and examination of compliance with the Law on Deposit Insurance, the draft Law on Deposit Insurance (amended) proposes additional rights and obligations for the deposit insurer, including the authority to examine insured institutions under plans and mandates assigned by the SBV. Accordingly, the draft Law proposes the following right and obligation of the deposit insurer: "To conduct examinations at insured institutions pursuant to plans and specific mandates assigned by the State Bank of Vietnam."

The proposed amendments aim to ensure consistency between the Law on Deposit Insurance and relevant legal regulations, and align with directions from competent authorities. This includes strengthening the role and assigning additional responsibilities to the DIV in support of the SBV's examination functions over insured institutions. At the same time, this provides a legal foundation enabling the DIV to fully exercise its role within the deposit insurance framework.

In the context of streamlining the administrative system, the SBV has consolidated its network from 63 provincial branches to just 15 regional branches. Meanwhile, credit institutions operate widely across multiple localities with expanding scale and complexity. Thus, assigning the DIV to conduct examinations is considered a measure to mobilise additional resources to support the SBV’s inspection activities and provide a multi-dimensional perspective in assessing credit institutions’ operations. The DIV’s examination function does not duplicate the SBV’s inspection role. Moreover, it supports the DIV’s core function of contributing to the safe development of the credit institution system.

Experts note that this provision is consistent with the principle of “ensuring no more than one inspection or examination per year for an enterprise” set out in the Politburo’s Resolution No. 68-NQ/TW dated May 4, 2025, on private-sector development. Under this framework, the SBV remains the lead authority responsible for developing and approving the examination plan, based on which specific tasks will be assigned to the DIV, ensuring that no duplication or overlap occurs and that no credit institution is subject to more than one inspection/examination annually.

International experience shows that on-site examination is a crucial operational function of deposit insurers. According to the International Association of Deposit Insurers (IADI), deposit insurers face substantial risks, specifically losses to the deposit insurance fund, in the event of a bank failure. Therefore, granting the examination function to deposit insurers helps reduce the probability of reimbursement and mitigate negative impacts on the fund. Globally, approximately 40 deposit insurers conduct on-site examinations (e.g., in the U.S., Taiwan (China), South Korea, Indonesia, Japan).

The legislating of on-site examinations at insured institutions in accordance with SBV-assigned plans - an activity that the DIV has already been performing - is both necessary and aligned with practical realities. When the DIV participates in and supports examination work, the SBV gains an additional supervisory channel, as well as a more comprehensive perspective when assessing the operations of credit institutions. This approach ensures coordination without overlaps: the SBV continues to lead, develop, and oversee the overall inspection and examination plan, while the DIV performs specific examination tasks assigned to it each year./.