Governor shares “difficult story” when there was a mass withdrawal incident at SCB

(Dan Tri) - State Bank Governor Nguyen Thi Hong said that when the mass withdrawal incident occurred at SCB Bank, although the deposit insurance fund at that time had nearly 100,000 billion VND, it could not be used.

This story was shared by State Bank Governor Nguyen Thi Hong at the 49th session of the National Assembly Standing Committee on the afternoon of September 22, when giving opinions on the draft Law on Deposit Insurance (amended).

The draft amended law stipulates the time when the obligation to pay insurance premiums arises earlier with 3 specific times.

One is from the time the credit institution's bankruptcy plan is approved or the State Bank has a document confirming that the foreign bank branch is unable to pay deposits.

The National Assembly Standing Committee gives opinions on the draft revised Law on Deposit Insurance (Photo: Hong Phong).

Second, the time when the State Bank issues a document suspending the deposit-taking activities of a credit institution under special control when the credit institution has accumulated losses greater than 100% of the value of its charter capital and reserve funds.

Third, payment in special cases when the State Bank of Vietnam reports to the Government for decision to request the deposit insurance organization to pay if the credit institution under special control is insolvent or at risk of insolvency. The time of arising of the payment obligation is determined when the State Bank issues a written notice to the deposit insurance organization about payment in special cases.

Sharing more about this content, Governor Nguyen Thi Hong recounted the story of when a mass withdrawal incident occurred at SCB Bank, although the deposit insurance fund at that time had nearly 100,000 billion VND, it could not be used.

Ms. Hong said the reason was because the old law stipulated that this deposit insurance fund would only be paid when a credit institution went bankrupt. While in reality, bankruptcy is a difficult story, according to Governor Nguyen Thi Hong.

That is also the reason why this amendment, the draft law proposes to allow deposit insurance to be paid to depositors sooner rather than having to wait until bankruptcy is declared to be used.

Also for this reason, according to the Governor, in case the deposit insurance organization has used up all its funds and does not have enough money to pay depositors, the draft law proposes that the deposit insurance organization can get a special loan from the State Bank.

Along with determining the earlier payment time, the draft amended law also adjusts the insurance payment deadline to be earlier than the current law.

Governor of the State Bank Nguyen Thi Hong (Photo: Hong Phong).

The draft law also adds a provision that in special cases, the Governor of the State Bank decides on the maximum payment limit equal to all insured deposits of depositors. Under current law, this authority belongs to the Prime Minister .

These amendments, according to the Governor, aim to promote the role of deposit insurance organizations in protecting depositors' rights and ensuring system safety.

"In case early payment can ensure system safety, depositors can also receive a maximum amount equal to their deposits, not according to the deposit insurance limit," Ms. Hong emphasized.

She added that in the SCB Bank case, after consulting with competent authorities, all people's deposits at this bank were paid up to the maximum instead of according to the insurance limit.

The draft revised Law on Deposit Insurance is expected to be submitted to the National Assembly for consideration and approval at the 10th session, opening on October 20.

Source: https://dantri.com.vn/kinh-doanh/thong-doc-chia-se-cau-chuyen-kho-khi-co-su-co-rut-tien-hang-loat-tai-scb-20250922162120377.htm