Lawmaker discussed a bill amending and supplementing some articles of the Law on Credit Institutions on October 26, stressing the need to ensure depositors’ interests and exempt persons engaging in credit institution restructuring from responsibility.

Head of the National Assembly's Economic Committee Vu Hong Thanh at the event 

The discussion was part of the ongoing 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, it 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 wondered 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 because 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 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.

Echoing the view, deputy Bui Thanh Tung asked to keep the regulation on responsibility exemption for persons taking part in the restructuring as it is necessary legal protection for those handling this tough 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.-VNA