HCMC – Vietnam’s central bank has proposed increasing the deposit insurance payout limit to VND350 million per depositor from the current VND125 million, according to a draft circular released for public feedback.
The State Bank of Vietnam (SBV) described the proposed increase as a threefold rise and noted it is “not too abrupt.” The payout cap represents the maximum insured amount per customer at a participating institution, including both principal and interest.
The SBV said that the adjustment is needed as economic growth and the banking system have expanded rapidly, while the payout limit has not kept pace with market developments. The increase is intended to strengthen public confidence and help reduce the risk of mass withdrawals.
Under the proposed limit, about 93.7% of depositors would be fully protected, compared with 87.6% under the current cap. This would fall within the 90–95% range recommended by the International Association of Deposit Insurers and align with Vietnam’s deposit insurance development strategy, although still below the global average of 98%.
The SBV also noted that the ratio of the payout limit to per capita GDP would rise from one time to 2.8 times, approaching the global trend of 3.3 times.
Deposit insurance coverage in Vietnam has increased more than fourfold over the past 25 years, from VND30 million to VND125 million, while total insured deposits grew from VND66.4 trillion in 2000 to VND10.2 quadrillion at the end of 2025. During the same period, per capita GDP rose 22 times, reducing the relative value of the current coverage limit.
From May 2026, deposit insurance payouts will apply in three cases: when the SBV approves the bankruptcy of a credit institution or foreign bank branch unable to repay deposits; when deposit-taking is suspended at specially controlled institutions with accumulated losses exceeding charter capital; and when authorities require payouts to ensure financial system safety and social stability.
