Question: I have a 500 million VND savings account at a bank, however as of lately, the maximum amount of deposit insurance money paid in the event that the bank fails is just 125 million VND. So, is it possible to receive up to 125 million VND if the bank fails?
Law Department - ACDC advises:
According to Article 3 of Decision 32/2021/QD-TTg on insurance payment limit, the maximum amount the insurance pays for all insured deposits (both principal and interest) of a person at a bank when an insurance payment obligation arises, is VND 125 million.
Under Clause 1, Article 54 of the 2014 Bankruptcy Law, the order of asset division of enterprises when declaring bankruptcy is as follows::
Article 54. Sequence of redistribution of assets
“1. In case the judge issues a decision to declare bankruptcy, the assets of the enterprise or cooperative shall be divided in the following order::
a) Cost of Bankruptcy
b) The unpaid salaries, severance pay, social insurance and medical insurance to employees, and other benefits according to the labour contracts and collective bargaining agreements;
c) Debts incurred after the initiation of bankruptcy which is used for resuming the business operation.
d) Financial obligations to the Government; unsecured debts payable to the creditors on the list of creditors; secured debts which are not paid because the value of the collateral is not enough to cover such debts.”
From the above regulations, it can be seen that when a bank goes bankrupt, the bank's assets will be taken out to handle other debts and expenses. Therefore, in addition to the deposit insurance level of VND 125 million, the depositors can also receive compensation from the liquidation of assets of the bankrupt bank.
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Above is our consulting opinion on the question of our customers.
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