Protecting the interests of depositors at commercial banks according to Vietnamese law - 2

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Complete the law to protect the rights of depositors at commercial banks in Vietnam.

For the purpose of the thesis, the following tasks are:

Firstly , Research the theoretical issue of protecting depositors' rights at commercial banks in Vietnam.

Second , Research the current situation of applying the law to protect the rights of depositors at commercial banks in Vietnam, thereby pointing out shortcomings and some recommendations to supplement and improve the provisions of law on this issue. this topic.

4. Scope and subjects of research:

rights

Current law with practice The thesis analyzes and evaluates to clarify the advantages and limitations of regulations in practical application of law related to protecting depositors' rights. From there, boldly propose a number of recommendations for continuing to develop laws to protect depositors' rights in the future.

Scope of research: Laws on protecting the rights of depositors at commercial banks can be approached and analyzed from many different angles, however within the scope of the thesis it is impossible to analyze all of those issues. Derived from the purpose and task of research, the thesis only focuses on clarifying theoretical issues about depositor protection such as the concept, characteristics of depositors, the need to protect depositors and introduce measures to protect the interests of depositors, which are security measures from state agencies

(Deposit Insurance, State Bank), security measures from commercial banks and measures from depositors themselves. Evaluate the current state of application of those regulations based on the scientific basis of practical operation of the causes and limitations that still exist in the law and in the process of enforcing the law on depositor protection. On that basis, the thesis makes recommendations to improve the law protecting the rights of depositors at commercial banks in Vietnam .

5. Research methodology and methods:

In the process of approaching and solving the problems posed by the thesis, the author used the materialist dialectical method of Marxism-Leninism, based on the guidelines and views of our Party and State on politics. socio-economic policies and other related contents. In specific cases, the author combines and uses appropriate research methods such as statistics, comparison, synthesis, analysis... to smoothly combine theoretical and practical knowledge to contribute to clarify issues that need to be researched.

6. Structure of the thesis:

In addition to the Introduction, Conclusion, Table of Contents, Appendices, and List of References, the Thesis is designed with three chapters as follows:

Chapter 1. Theoretical issues of protecting depositors' rights at commercial banks

Chapter 2. Current status of the law on protecting the rights of depositors at commercial banks in Vietnam

Chapter 3. Recommendations to improve and implement the law on protecting depositors' rights

1.1. Concept and characteristics of depositors

1.1.1. The concept of depositor

Depositors are an important subject that every commercial bank must pay attention to, because without depositors, commercial banks do not have enough capital to conduct their business activities. Therefore, to ensure their development ability, banks must always pay attention to the needs and preferences of depositors to attract deposits from this group. In the current period, when depositors are faced with many choices to secure their money, and when they deposit it with a credit institution in general and a commercial bank in particular, they all want that money to be safe and profitable. At its highest, the competition of commercial banks becomes more vibrant and diverse than ever. To understand the law protecting the rights of depositors, we must first clarify the concept of depositor. However, regarding the current concept of depositors, Vietnamese law still does not have an official document setting out this concept. Therefore, to introduce the concept of depositors, the author relies on concepts related to the concept of deposits and the concept of consumers from different perspectives.

A depositor is commonly understood as a person who has a deposit into their account at a commercial bank. Deposits have great significance for depositors and commercial banks. For depositors, the meaning of deposits depends on their purpose of depositing. We can easily recognize two cases where customers deposit money: when customers benefit from the payment tools that the bank provides them or when customers deposit money to earn interest such as depositing into a savings account. savings or recurring account. As for commercial banks

Meaningful deposits are an important source of capital, mainly for carrying out banking operations. Therefore, people find it difficult to introduce the concept of deposits, so there are many different views:

According to the Dictionary of Modern Economics, Deposit is understood as an amount of money lent to certain financial institutions with the condition that it allows withdrawal before or without or repayment after a certain period of time. That means deposits are closely linked to commercial bank operations because commercial banks mobilize for on-lending.

In section 3 of the US Deposit Insurance Law, deposits are understood as unpaid balances of money or equivalent value that have been received or held with a bank or savings association in the ordinary course of business and from that it grants or is obliged to grant credit, whether conditional or unconditional, to a commercial, checking, savings, demand account or evidenced by a certificate of deposit, savings certificate savings account, certificate of investment, certificate of indebtedness, or similar names or check, or draft drawn on a deposit account and certified by a bank or savings association, or letter of credit or traveler's check to which the bank or savings association has the first obligation.

The 2010 Law on Credit Institutions does not use the concept of deposits but uses the concept of "deposit receiving activities" . According to Clause 13, Article 4, Law on Credit Institutions 2010 stipulates: "Deposit receiving is the activity of receiving money from organizations and individuals in the form of demand deposits, term deposits, and issuing money certificates." deposits, promissory notes, bills and other forms of receiving deposits on the principle of returning both principal and interest to depositors as agreed.

The concept of deposits according to the above regulations is closely related to customers' accounts at commercial banks. Depositors can choose deposit types according to their purposes and enjoy services provided by the bank

granted, receive interest. At the same time, there is an obligation for the bank to use those funds for its business activities with a commitment to repay on the due date (for term accounts) or at the customer's request (for term accounts). for non-term accounts).

From the above approaches, the definition of the concept of deposit can be drawn as follows: Deposit is the amount of money deposited by customers at credit institutions in the forms prescribed by law in accordance with the customer's purposes and requirements. goods and that credit institution itself.

From a perspective related to the concept of consumers, there is a view that depositors are consumers in the banking sector [9]. Normally, a consumer is understood as a person who buys goods or uses services from production facilities, service providers, or stores for his or her needs and purposes. There are many concepts about consumers. Currently, there are two different ways of understanding consumers:

In a narrow sense, consumers are individuals, households, and organizations that buy or use goods and services for their own living and consumption purposes. Thus, consumers include both buyers of goods (buying food, medicines, clothes, machinery and equipment, household appliances, vehicles...) and users. services (insurance services, transportation, entertainment, medical examination and treatment, repair, equipment installation...).

In a broad sense, consumers, in addition to the purpose of buying goods and using services to meet daily needs, can also serve the purpose of business reproduction (buying this product for processing and production). into other products, for example buying fabric to sew into pants, shirts and sell).

Around the world, the laws of each country have different criteria and definitions of consumers, mainly based on subject status and purpose of use to define what a consumer is:

Consumers are individuals who buy and use goods or services. This regulation clearly shows that the Consumer Protection Law only protects those who receive goods or services for personal use. used in households, not for commercial purposes or used in the production process because legal entities have better positions and conditions than individuals in relationships with suppliers, so the Law protects people. Consumers do not need to intervene in their consumer relations.

Consumers include individuals and organizations that purchase and use goods for consumption or commercial purposes. This regulation expands the subjects protected under consumer protection laws. This regulation overcomes the limitations of the above regulation because legal entities are not always capable of facing violations from manufacturers and businesses, and as a result, if the law protects If consumers do not protect themselves like other consumers, the rights of a fairly large group of people in society are violated, causing general damage to the entire society.

In our country, according to the 2010 Consumer Protection Law, a consumer is understood as a person who buys and uses goods and services for consumption and daily life purposes of individuals, families, and organizations.

So, are depositors at commercial banks who lend money to the bank also consumers? The act of depositing money at a bank, in its legal nature, also contains the characteristics of two types of contracts as prescribed by law, which are: Asset loan contracts as prescribed in Articles, from Article 471 to Article 478 of the 2005 Civil Code, in which the depositor is the lender and the bank is the borrower of the asset and the asset deposit contract is as prescribed in Articles 559 to 566 of the Civil Code, in which the depositor is the depositor and the bank is the asset holder.

If you follow the type of asset loan contract, the bank is the borrower and the customer is the lender. Accordingly, in general principle, banks must pay interest to customers. If you follow the type of asset deposit contract, the customer is the depositor, and the bank is the depositor. Accordingly, in general principle, customers "must pay money" to the bank for keeping their assets safe according to their requirements. However, which party must pay which party is only relative, because the Civil Code also stipulates that the borrower may not have to pay interest (Article 471) and the depositor may not have to pay. wages (Article 566).

The provisions of the Law on Credit Institutions 2010 do not clearly define whether the deposit relationship belongs to the type of deposit contract or asset loan contract according to the provisions of the Civil Code, but only confirms that it is a "deposit" of the customer. and the “receipt of deposits” by banks.

According to the author, a bank's deposit receiving activity is a special type of civil contract, and has both the characteristics of a deposit contract and a property loan contract. As the custodian of assets, the bank receives "remuneration" from the use of depositors' capital. At the same time, as a borrower of assets, the bank must pay interest to depositors. Simply determining the deposit according to a contractual relationship is not sufficient.

With the above characteristics, it is necessary to put the depositor in the position of a user of banking services, or a "buyer", not a "seller" in the relationship with the bank.

Thus, there is still a lack of clear regulations in the Civil Code as well as in the Law on Credit Institutions to ensure the legal basis for the legal relationship of sending and receiving deposits. The Law on Credit Institutions only mentions the right of credit institutions to receive deposits. As for the content of the deposit relationship, there is currently no specific document.