PIDM extends international cooperation to enhance capability and operational readiness

Kuala Lumpur, 8 December 2016: Perbadanan Insurans Deposit Malaysia (PIDM) has announced new developments as part of the Corporation’s continuous efforts to extend mutual cooperation and collaboration with its international counterparts. 

The Corporation recently signed two separate memoranda of understanding (MoUs) with the Federal Deposit Insurance Corporation (FDIC) of the United States and the Korea Deposit Insurance Corporation (KDIC). 

“The formalisation of our collaboration with these jurisdictions is part of PIDM’s continuous efforts to enhance our capability and operational readiness. Cross border arrangements for the sharing of information and cooperation will enhance our ability to fulfil our respective mandates effectively and efficiently”, said Rafiz Azuan Abdullah, Executive General Manager of PIDM.

“Given the increasingly interlinked, highly globalised and complex environment that we operate in, international cooperation and mutual collaboration is of prime importance”, he added. 

The MoUs will facilitate the sharing and exchange of information, and mutual collaboration between the Corporation and its US and Korean counterparts respectively. The MoU with KDIC is a renewal of that previously signed by the two parties in 2013.

Besides seeking to enhance the working relationship between the Corporation and both FDIC and KDIC, the MoUs will also provide opportunities for sharing of knowledge, expertise and experiences through study visits, secondments, trainings and seminars. 

PIDM administers the national Deposit Insurance System (DIS) and the Takaful and Insurance Benefits Protection System (TIPS) in Malaysia and is the resolution authority in respect of its member institutions. FDIC is an independent United States federal supervisory authority and is the resolution authority for insured depository institutions and covered financial companies. KDIC is an independent government legislated entity which operates an integrated deposit insurance system (commercial banks, insurance companies, savings banks, and securities companies) and is a resolution authority for troubled financial institutions.

PIDM is one of the key players in the international arena and is actively involved in the formulation of international standards and guidance relating to deposit insurance, through its membership of the International Association for Deposit Insurers (IADI). As part of IADI’s Core Principles for Effective Deposit Insurance Systems, formal information sharing and coordination arrangements among deposit insurers in relevant jurisdictions are encouraged.

To date, PIDM has established bilateral cooperation with several other deposit insurers in the world, which include the Philippines Deposit Insurance Corporation (PDIC) and the Central Deposit Insurance Corporation (CDIC) Taiwan. PIDM also has a tripartite arrangement with the Deposit Protection Agency (DPA), Thailand and the Indonesia Deposit Insurance Corporation (IDIC).