Depositors of credit institutions that go bankrupt will be allowed to receive claim money from the Deposit Insurance of Vietnam within one month after the bankruptcy declaration.
This is contained in Circular 24/2014/TT-NHNN on bank deposit insurance, which the State Bank of Vietnam (SBV) issued this week.
The circular says that claim money will be paid when a credit institution receives SBV documents on either the termination of special control or termination of the application or non-application of necessary measures to restore solvency but is still unable to pay.
The amended Bankruptcy Law, which the National Congress passed last June, will take effect on January 1, 2015, once the President signs it. The law has a chapter with provisions on bankruptcy procedures for credit institutions.
According to the law, bankrupt credit institutions will consider the interests of depositors in the disposition of their remaining assets after they have repaid special loans from the SBV and other credit organisations.
The depositors will also get claim money from deposit insurers.
During the country’s banking system restructuring process that began from the end of 2011, weak banks were handled through mergers, but none of them have gone bankrupt.
However, to better restructure the banking system amid rising bad debts, the National Congress passed the amended Bankruptcy Law.
At the government’s regular meeting last August, prime minister Nguyen Tan Dung once again ordered that the banking system’s restructuring process be accelerated and, if necessary, that weak banks be allowed to go bankrupt.