The discussion was part of the on-going fourth session of the 14th National Assembly (NA) in Hanoi.
Bui Thi Quynh Tho, a deputy of Ha Tinh province, asked for the draft law to include more detailed regulations on bankruptcy plans for credit institutions to ensure the safety of depositors and the whole system. Aside from clarifying depositors’ interests in case credit institutions are put under special control, the law also needs to detail relevant parties’ responsibility before and after institution restructuring.
Deputy Bui Thanh Tung of Hai Phong city said at the NA’s third session earlier this year, the draft law had a regulation on measures to assist the repayment of over-limit deposits to depositors when poor-performing institutions are bankrupted. However, this regulation was excluded when the bill was taken into consideration at this fourth session. He has concerns with how depositors’ interests will be dealt with in this case.
Sharing the same view, deputy Nguyen Thi Le Thuy of Ben Tre province stressed that the top priority must be given to protecting the interests of depositors due to the fact they are the biggest shareholders of credit institutions. Deposits make up 85 percent of those institutions’ capital sources.
The draft law stipulates five restructuring plans for credit institutions under special control, including dissolution and bankruptcy, but hasn’t detailed depositors’ interests in these two cases.
She called for more concrete regulations to protect the interests of depositors, regardless they are individuals or legal entities.
Regarding the responsibility of persons involved in credit institution restructuring, Dinh Duy Vuot, representing Gia Lai province, said that special mechanisms for them are necessary since people are the decisive factor in the restructuring. Saving ailing credit institutions is a particularly difficult and complicated work that needs effective and even unprecedented solutions.
Reiterating the view, deputy Bui Thanh Tung asked to keep the regulation on responsibility exemption for persons taking part in the restructuring as it is essentially legal protection for those handling this difficult and complex work. The bill specifies that they are exempted from responsibility only when they have fully performed their duties.
Without a good mechanism to attract personnel to the restructuring of poor-performing institutions, the restructuring quality will be directly affected, he added.
