IADI E-Newsletter (Volume 17 Issue 2)

Welcome to the IADI's e-Newsletter

The International Association of Deposit Insurers (IADI) is pleased to provide the latest issue of its e-Newsletter.
The e-Newsletter keeps you up-to-date on information about IADI activities from mid-July to the end of 2019, as well as on upcoming IADI activities.

This issue includes:


		Season's greetings from the IADI Secretariat
		Message from David Walker, IADI Secretary General
		Highlights from the 18th Annual General Meeting
		Save the Date: 19th IADI Annual General Meeting and Annual Conference
		Announcements regarding secretariat members and invitations for secondment positions
		EXCO approval of new/renewed Chairpersons for the Council Committees and two Regional Committees
		Highlights from the IADI 18th Annual Conference

		Key achievements and updates from the Council Committees (CCs) and their Technical Committees (TCs)
		Updates from the IADI Secretariat Research Unit and the 2019 Annual Survey
		Additional events, trainings and conferences
		New IADI Participants
		Forthcoming events
		Other updates and forthcoming events
		New Books and Papers

Let me express my sincere appreciation to all IADI Members, Associates and Partners for their efforts and support in the furtherance of IADI’s mission over past six months. The IADI Secretariat looks forward to contributing to the advancement of IADI in 2020.

We also look forward to seeing you at the meetings, including the 61st Executive Council Meeting, in Basel, Switzerland from 11 to 13 February 2020.

The IADI Secretariat Team wishes you the very best of the forthcoming year!

   David Walker
   Secretary General
   International Association of Deposit Insurers

Season’s greetings from the IADI Secretariat

Message from David Walker, IADI Secretary General


		The past six months have been a time of significant accomplishments and changes for IADI. The Association has been advancing its Strategic Goals through key initiatives such as improving the delivery of IADI’s training, technical assistance and capacity building services to Members and advancing IADI’s policy and research, as well as member outreach efforts. Moreover, the Association has seen the work of the Working Group on New Funding Options (WGNFO) completed and the adoption by the IADI membership of a new strategy for advancing training, technical assistance and research to meet Phase II of IADI’s Strategic Goals: the Way Forward.
	The Training and Technical Assistance Council Committee (TTAC), supported by the IADI Secretariat helped coordinate five Technical Assistance Workshops (TAWs) in the past year. The TTAC and its Technical Committees moved further to establish a Core Curriculum for workshops designed for differing audiences and establishing an Expert Training Strategy, which seeks to create a structured programme for training IADI Members interested in developing an in-depth knowledge of the IADI Core Principles, becoming capable of leading Self-Assessment and Technical Assistance Program (SATAP) reviews, supporting TAWs, and supporting or participating in the IMF/World Bank FSAP reviews. Two additional SATAPs were completed for Trinidad and Tobago and Ecuador in the second half of 2019. In the area of research, guidance, and policy development, IADI’s Core Principles and Research Council Committee (CPRC) and the Secretariat’s Research Unit (RU), have been working on the development and articulation of IADI-generated deposit insurance, financial stability policy and research. The aforementioned has included the development of research on contingency planning and crisis management, purchase and assumption, public policy objectives, financial inclusion and innovation, risk management and internal control systems and differential premium systems. It also includes identification of emerging trends in deposit insurance and financial stability such as resolution funding and the insurability of e-money deposits. Going forward, IADI will be intensifying its emerging issues initiatives by establishing a new Technical Committee on FinTech and working more closely with various international financial institutions including the BIS, IMF and World Bank to share knowledge and expertise in this area. The IADI database has enabled the Association and researchers around the world to better analyse global deposit insurance trends, as well as provide insight for those seeking to enhance their domestic deposit insurance systems (DIS). A key example is the collection of deposit insurance related data for the IADI Annual Survey using the newly implemented IADI Survey and Data Management System. One of the most significant events in the second half of 2019 was the IADI 18th Annual General Meeting held on 11 October 2019 in Istanbul. IADI Members approved the “Proposed Strategy for Advancing Training, Technical Assistance and Research to Meet Phase II Strategic Objectives” and the required Statutes changes. The adopted strategy includes providing additional staff resources dedicated to training and capacity building so that Members can have an expanded program, including implementation of the Experts Training Strategy and helping IADI Members with enhanced knowledge about the Core Principles. Expert Members will be able to serve as resources to other Members, enhance the quality of the TAWs and serve on the evaluation team for SATAP reviews. The additional staff will also enable IADI to develop and implement a core curriculum for deposit insurance training, which will benefit all Members. The establishment of a structured, consistent and rigorous training program in the Core Principles will strengthen IADI’s status as an international standard setter. In addition to providing more training and technical assistance resources, the implementation of Phase II will allow IADI to deploy better capability to monitor and conduct compliance assessments for the Core Principles for all members and commission more external research on specific subjects. In accordance with the adoption of IADI’s Business Plan and Budget for 2020/21-2021/22, a Differentiated Fee Model (DFM) will be introduced from FY 2020/21 starting 1 April 2020. This will provide the Association with the necessary resources to provide the new benefits to Members and facilitate the implementation of the programs and activities proposed by the Council and Technical Committees. The approved DFM is a straightforward and verifiable approach and fits the needs of many Members. However, it is recognised that it may not be optimal for some Members. Therefore, IADI’s work will continue through a review of the DFM in consideration of other criteria, to accommodate where possible any fee concerns by the Membership. During the New Year, we look forward to working with our Members to strengthen the Association by implementing Phase II of the Strategic Goals and in so doing promote more effective deposit insurance systems and financial stability around the world

Highlights from the 18th Annual General Meeting

IADI, whose Executive Council is chaired by Mr Katsunori Mikuniya, IADI President and Governor of the Deposit Insurance Corporation of Japan, held its 18th Annual General Meeting (AGM), Annual Conference, 60th EXCO and 60th bisEXCO meetings on 7 - 11 October 2019, at the Conrad Istanbul Bosphorus Hotel, Istanbul, Turkey. The highlights of the week’s proceedings were:

EXCO Election Results

In the course of the IADI AGM held on 11 October 2019, IADI announced the election results for the position of the EXCO Members, effective 11 October 2019. The 15 Council members elected are as follows:

Mohamud Ahmed
Kenya Deposit Insurance
Corporation Nikolay N. Evstratenko
Deposit Insurance Agency
(Russia) Zaher Hammouz
Palestine Deposit Insurance
Corporation Mu’taz Ibrahim Barbour
Jordan Deposit Insurance
Corporation Giuseppe Boccuzzi
Interbank Deposit Protection
Fund (Italy)

Michel Cadelano
Fonds de Garantie des Dépôts
et de Résolution (France) Daniel Dominioni
Corporación de Protección del
Ahorro Bancario (Uruguay) Patrick Déry
Autorité des marchés financiers
Québec (Quebec, Canada) Yvonne Fan
Central Deposit Insurance
Corporation (Chinese Taipei) Mariano Herrera
Fondo de Garantía de Depósitos
de Entidades de Crédito (Spain)

Daniel Lima
Fundo Garantidor de
Créditos (Brazil) Gabriel Limón González
Institute for the Protection
of Bank Savings (Mexico) Sonja Lill Flo Myklebust
The Norwegian Banks’
Guarantee Fund Miroslaw Panek
Bank Guarantee Fund
(Poland) Seongbak Wi
Korea Deposit Insurance
Corporation

The newly elected EXCO Members shall act in the best interests of the Association, and shall serve for a three-year term.

The remaining Council members are:

Rafiz Azuan Abdullah
Malaysia Deposit Insurance
Corporation Dean Cosman
Canada Deposit Insurance
Corporation Diane Ellis
Federal Deposit Insurance
Corporation (USA) Gregor Frey
esisuisse
(Switzerland) Muhiddin Gülal
Savings Deposit Insurance
Fund (Turkey)

Fauzi Ichsan
Indonesia Deposit Insurance
Corporation Alex Kuczynski
Financial Services Compensation
Scheme (United Kingdom) Alejandro López
Seguro de Depósitos Sociedad
Anónima (Argentina) Michelle Rolingson-Pierre
Deposit Insurance Corporation
(Trinidad and Tobago)

The following have retired from their respective positions on the EXCO since the previous edition of the E-Newsletter. The Association thanks them for their contributions to the leadership of IADI.

Hugo Libonatti
Corporación de Protección del
Ahorro Bancario (Uruguay) Umaru Ibrahim
Nigeria Deposit Insurance
Corporation William Su
Central Deposit Insurance
Corporation (Chinese Taipei)

A link to the Press Release on the subject of the Annual General Meeting including its elections, may be found here.

IADI Strategic Goals: The Way Forward (2015) - Implementation of Phase II

At the IADI 18th AGM held on 11 October 2019 in Istanbul, Turkey, the Members approved the “Proposed Strategy for Advancing Training, Technical Assistance and Research to Meet Phase II Strategic Objectives” and the required Statutes changes, the Revised Business Plan for 2019-2022, the Revised Budget for FY 2019-2020 and the Forecast Budget for FY 2020-2021, as well as the extension of the IADI Strategic Goals: The Way Forward” Paper until the end of calendar year 2021. With regards to the required Statutes changes, a two-thirds majority of the Members casting a vote was received, in accordance with Article 14 of the Statutes.

In accordance with these decisions, a Differentiated Fee Model (DFM) will be introduced from FY 2020/21 starting 1 April 2020, giving the Association further resources to be able to provide more substantial benefits to Members and facilitating implementation of many programs and activities that have been proposed by the Council and Technical Committees.

With the additional staff dedicated to training, Members can expect an expanded program, including implementation of the Experts Training Strategy, producing more IADI Members with a higher level of knowledge about the Core Principles. Those Members will be able to serve as resources to other Members, enhance the quality of the Technical Assistance Workshops and serve on the evaluation team for SATAP reviews. The additional staff will also enable IADI to develop and implement a core curriculum for deposit insurance training which will benefit all Members. The establishment of a structured, consistent, and rigorous training program in the Core Principles will strengthen IADI’s status as an international standard setter.

The approved DFM is a straightforward and verifiable approach and fits the needs of many Members. However, it is recognised that it may not be optimal for some Members. Therefore, our work will continue through a review of the DFM in consideration of other criteria, to accommodate where possible any fee concerns by the Membership.

Save the Date: 26-30 October 2020 - 19th IADI Annual General Meeting and Annual Conference


	*Save the Date!* The 19th IADI Annual General Meeting, 63rd EXCO Meeting and Annual Conference will be hosted by the Seguro de Depósitos SA (SEDESA) in Buenos Aires, Argentina on 26-30 October 2020. Registration details and Program information will be available as of Spring 2020.

Announcements regarding Secretariat Members and invitations for Secondment positions

New Secretariat Member We are pleased to announce the recruitment of Ms Eugenia Kuri Alamillo for the newly-established position of Senior Training and Technical Assistance Advisor (STTAA). Ms Eugenia Kuri Alamillo was appointed STTAA and joined the IADI Secretariat team on 16 September 2019. Ms Kuri formerly worked ten years in Mexico’s Instituto para la Protección al Ahorro Bancario (IPAB), acting in various positions within the International Affairs Office until her appointment to direct IPAB’s international activities as Deputy General Director of International Affairs in 2016. Her experience includes coordinating IPAB’s working relationship with all foreign counterparties, representing IPAB on Crisis Management Groups for the globally systemically important banks that operate in Mexico, advising on best international practices for the implementation of resolution planning for banks in Mexico, and participating in the development of a resolution and bank failure training program within IPAB. Over the years, Eugenia has worked with IADI on development of the revised Core Principles for Effective Deposit Insurance Systems; she has acted as Vice Chairperson of the Data and Survey Committee and subsequent Chairperson of the Data and Survey Technical Committee (DSTC); she has facilitated the transition of responsibilities of the DSTC to the Research Unit and she participated in the Project Team for development of the IADI Survey and Data Management System. She also worked extensively on IADI’s training and technical assistance initiatives from 2016 onward as support staff for the Chairperson of the Training and Technical Assistance Council Committee and former IPAB Executive Secretary. Ms Kuri is working on coordinating activities with the Training and Technical Assistance Technical Committees to implement various initiatives, including: drafting of the new Financial Stability Institute (FSI) suite of tutorials on “Assessment of Compliance with the Core Principles on Effective Deposit insurance Systems”, release and analysis of the Technical Assistance Survey, establishing a Working Group for implementation of the Expert Training Strategy, and reviewing IADI policies and manuals that need to be updated to reflect the role of the STTAA. Eugenia is also working closely with the Secretary General and the TC Chairs, and will start working with the newly appointed TTAC Chairperson, on a Business Plan in line with the “Proposed Strategy for Advancing Training, Technical Assistance and Research to meet Phase II Strategic Objectives”.
Farewell to a former staff member Nikolay Remchukov joined the IADI Secretariat in September 2014 as Research Associate in the newly established Research Unit, from the Deposit Insurance Agency of Russia where he served as Director for International Cooperation. Working closely with the Senior Policy and Research Advisor, Nikolay coordinated various IADI surveys, including the Annual Survey while focusing on the enhancement of the Annual Survey database, both in terms of data consistency and unified validation approach, and ensuring the widest possible participation by IADI Members as well as non-Member DIS worldwide. He contributed to the activities of the former Training and Conference Committee and the Training and Conference Technical Committee, including the IADI SATAP review for Fundo Garantidor de Créditos (Brazil). He worked on the establishment of the Secretariat’s database of the various forms of the assessment against the IADI Core Principles and supported the EXCO’s former Working Group on Technical Assistance, set up in October 2015. He participated in the first session of the IADI Expert Training, which took place in Naples, Italy, in March 2018. Nikolay also coordinated the organisation of the first IADI Members’ only repository of knowledge materials from each IADI conference, workshop or seminar from 2013 onwards. At a later stage, Nikolay took the position of Senior Policy and Communication Specialist, working closely with the Secretary General and his Deputy. In this capacity, he produced IADI communication materials, including the Annual Report, IADI Newsletters, press releases and IADI Profile. A Lawyer by education, Nikolay also provided expertise in the review of governance, EXCO and AGM materials. Having contributed significantly to the IADI’s Secretariat during his five year term, Nikolay’s term ends in end December 2019, and he is succeeded by Mr Teruhisa Mitsuyu from the Deposit Insurance Corporation of Japan. We thank Nikolay for his great efforts and wish him all the best in his future professional endeavours.
Secondment positions in IADI Secretariat The Secretariat is currently inviting applications for the following secondment positons: - Research Analyst (two positions) These positions will be based at the IADI Secretariat at the Bank for International Settlements in Basel, Switzerland. Please note these positions are sponsored by the Member/Associate providing a secondee, and not by the IADI. Further details may be obtained by contacting the Secretariat.

EXCO approval of new/renewed Chairpersons for the Council Committees and two Regional Committees

Chairpersons for four Council Committees

Further to the EOI process conducted from 25 October 2019 among the current IADI Executive Councilmembers for the vacant Chairpersons positions of the four Council Committees (CC), the IADI EXCO approved the appointment of new/renewed Chairpersons as below:

Audit and Risk Council Committee	Core Principles and Research Council Committee	Member Relations Council Committee	Training and Technical Assistance Council Committee

Sonja Myklebust Norwegian Banks’ Guarantee Fund, for a two-year term	Yvonne Fan Central Deposit Insurance Corporation, Chinese Taipei, for a three-year term	Mohamud Ahmed Mohamud Kenya Deposit Insurance Corporation, for a three-year term	Diane Ellis Federal Deposit Insurance Corporation, United States, for a one-year term

At the 61st EXCO meeting to be held on 13 February 2020 at the Bank for International Settlements in Basel, Switzerland, the correspondence approvals of the CC Chairpersons and the updated composition of the CC’s will be ratified by EXCO.

Chairpersons for two Regional Committees

During the EXCO Meeting held on 9 October 2019, the IADI EXCO approved the appointment of new/renewed Chairpersons for two regions, as follows:	Eurasia Regional Committee	Regional Committee of North America

	Svitlana Rekrut Deposit Guarantee Fund, Ukraine, for a two-year term	Dean Cosman Canada Deposit Insurance Corporation, for a one-year term

Highlights from the IADI 18th Annual Conference

The 18th Annual Conference was held on 10 - 11 October 2019 in Istanbul, Turkey, hosted by the Savings Deposit Insurance Fund of Turkey (SDIF). More than 200 participants from 70 jurisdictions worldwide attended the events.

The IADI Annual Conference, titled “Realizing Reforms: What has Changed in Deposit Insurance Systems since the Crisis?”, featured presentations and panel discussions by top policymakers, deposit insurers and prominent academics on key issues affecting the global economy, financial stability, deposit insurance and bank resolution.

Mr Muhiddin Gülal, SDIF Chairman and President, welcomed the participants and emphasised that after the global financial crisis, the global financial system has changed significantly and the importance of a deposit insurance system in maintaining financial stability has increased. In this regard, deposit insurers are expected to be more involved in early detection and timely intervention processes and continue with their efforts to adapt the resolution framework to the newly introduced international standards. He also mentioned that cross-border issues have become crucial because of globalization and noted that rapid change in financial technologies should be addressed adequately by the deposit insurers in order to avoid risks and seize opportunities.

In his opening remarks, Mr Katsunori Mikuniya, IADI President and Governor of the Deposit Insurance Corporation of Japan, highlighted that the national financial safety nets, including deposit insurance systems, have been developed and strengthened through the experience of various kinds of financial difficulties in the past, reflecting each jurisdiction’s idiosyncratic factors as well as global agreements. He also emphasised that the global financial crisis reaffirmed the importance of financial stability and the role of deposit insurers, stating that deposit insurance systems would minimise the likelihood of the emergence of future crises, mitigate the impact of financial difficulties and help the economy recover resiliently.

Keynote speaker Ms Jelena McWilliams, Chairman of the Federal Deposit Insurance Corporation (FDIC), United States, spoke about deposit insurance fund management and pricing. One of the most fundamental questions deposit insurers face is how large the deposit insurance fund should be, in other words, how do deposit insurers determine the optimal fund size and the appropriate target for the fund reserve ratio. She discussed different types of analysis that can inform decisions on the target for the fund reserve ratio, referring to the history of, and efforts made by FDIC economists to analyse how the FDIC’s fund had performed over time. Chairman McWilliams also highlighted work currently underway at the FDIC regarding the factors that determine loss rates. She concluded her speech by emphasising the limits of analytics and stated that the most analysis can do is to clarify the choices available in statistical terms, identifying the level of confidence that a fund of a given size will be sufficient for its obligations. Ultimately, setting an appropriate target for the size of the insurance fund is a policy choice and a matter of judgment.

Click the image to enlarge

Mr Juan Carlos Izaguirre, Senior Financial Sector Specialist, Consultative Group to Assist the Poor (CGAP), the World Bank, stressed in his keynote speech that e-money’s role in expanding financial inclusion in developing economies calls for reflection on whether and how it should be covered by a country’s deposit insurance system. He emphasised that policy makers should balance financial inclusion with protection, stability, and integrity objectives when deciding on a deposit insurance approach to e-money. He ended his presentation by noting that it is important for IADI and deposit insurers to continue exploring the best way to protect e-money funds, as failures in the system would affect the very vulnerable customers we care the most about.

Mr Fabio Natalucci, Deputy Director, Monetary and Capital Markets Department, the International Monetary Fund (IMF), delivered a presentation on the global financial markets development. Responsible for the IMF’s Global Financial Stability Report, he discussed the issues of financial conditioning, drawing attention to financial vulnerability and risk that affect advanced and emerging economies. He covered some recent issues including the trade tensions among major economies, and concluded his speech by mentioning the future outlook for the global financial markets.

Mr Dominique Laboureix, Member of the Board and Director of Resolution Planning and Decisions, Single Resolution Board (SRB), stressed the increasing importance of the resolution authorities. He outlined the European Union’s approach on managing bank failures through the SRB from three perspectives, namely, what has been done to date, what the situation is at present, and where to go for tomorrow. He noted the need to establish a common deposit insurance scheme, and to also include the essentials of harmonisation in insolvency rules. It is necessary to continue reinforcing the crisis preparedness as the more resolvable the banks are, the more remote the possibility of a crisis will be.

In his closing remarks, Mr David Walker, IADI Secretary General, stressed that much has been accomplished in terms of enhancing early warning and intervention tools, resolution regimes (particularly regarding more loss absorbency and new tools such as bail-in) and cross-border information and coordination. However, he also emphasised that financial systems continue to evolve and we face emerging new risks and challenges. The reform process since the crisis still has unfinished business in areas such as ensuring adequate funding and liquidity available to support resolution. Finally, FinTech and its implications for financial stability and deposit insurance – both positive and negative – is an issue we are facing and trying to harness for our mutual benefit.

IADI wishes to expresses its appreciation to SDIF, Muhiddin Gülal, along with Guclu Sirin, Head of Insurance and Risk Monitoring Department, Elif Kosoglu, Group Coordinator, Insurance and Risk Monitoring Department, Elif Aripinar, Cigdem Akdag and Berna Kocer, all Fund Experts, Insurance and Risk Monitoring Department, and all SDIF employees, for hosting and organising the Annual Conference, Annual General Meeting, and Executive Council Meeting.

A link to the Annual Conference presentations may be found here (eBIS sign-in is required), along with the Press Release.

Key achievements and updates from the Council Committees (CCs) and their Technical Committees (TCs)


	Audit and Risk Council Committee (ARCC) - chaired by Sonja Lill Flø Myklebust, Norway
	Secretariat Report on the Financial Statements for FY 2019/20 Q1: Review completed and the report was approved by EXCO. Audited Financial Statements for FY 2018/19: Approved at the AGM held on 11 October 2019. Appointment of External Auditor for FY 2019/20 ending 31 March 2020: Recommended to EXCO that AGM appoint PriceWaterhouseCoopers (PwC) as External Auditor and it was approved at the AGM held on 11 October 2019. ISDMS Project Auditor: Progress review of the project according to timeline and budget (in progress). IADI Risk Management and Internal Control Framework: Assistance to Secretariat in developing IADI Risk management and internal control framework (in progress).

	Core Principles and Research Council Committee (CPRC) - chaired by Yvonne Fan, Chinese Taipei
	New research topic for 2020/21: CPRC agreed to enhance Fintech research related to deposit insurance, and to establish a Technical Committee (TC) and/or working groups to address such issues by developing a longer-term and broader strategic/work plan. CPRC Chairperson is working with the IADI Secretary General and the Research Unit for the Terms of Reference (TOR) to specify the mandate and responsibilities of the new Fintech TC. Coverage Level and Scope Technical Committee (CTC): Expressions of Interest for membership on the CTC were sought and the proposed membership was approved in October 2019. The Islamic Deposit Insurance Technical Committee (IDITC) has finished drafting of the Core Principles for Effective Islamic Deposit Insurance Systems (CPIDIS), jointly working with the Islamic Financial Services Board (IFSB). CPIDIS has completed public consultations by IADI and IFSB. It was also reviewed by IFSB’ Shariah Board. IDITC has set up a working group to conduct the final review on comments made by Shariah Board as well as on the whole CPs document. Research Paper on Purchase and Assumption: Publication of the Research Paper on Purchase and Assumption was approved at the EXCO held in October. The paper was posted on the IADI public website in November 2019. Guidance Paper on Public Policy Objectives: All processes including incorporating comments from public consultation and conducting final copy edit were completed for this paper. The CPRC has recommended the paper to the EXCO members for official publication. Research Paper on Deposit Insurance and Financial Inclusion - Draft Research Paper on Deposit Insurance and Financial Inclusion: Current Trends on Insuring Digital Stored-value Products was submitted to the EXCO for its review, and comments made have been sent to the TC. The research paper is currently under review by the TC, and being revised accordingly. The paper will be ready for public consultation upon approval by the EXCO. Other papers are at the final stage or currently in progress: Research paper on Differential Premium Systems. Research paper on Risk Management and Internal Control Systems of Deposit Insurance Systems. Research Paper on Resolution Issues for Financial Cooperatives.

	Member Relations Council Committee (MRC) - chaired by Mohamud Ahmed Mohamud, Kenya
	The Secretariat Report on the Financial Statements for FY 2019/20 Q1 and Cash Management Report per 30 June 2019 – Review completed and the report was approved by EXCO. With regards to the initiative of reviewing the Membership’s Fee Structure, the MRC has played an active role both in the Working Group on New Funding Option as well as in the EXCO Meeting. This initiative was finalised in the additional EXCO Meeting at September 2019 and approved by a two-thirds majority of the Members at the AGM on the following month in Istanbul. Membership Application: In conjunction with the IADI Secretariat and Regional Chairpersons, the MRC participated in membership application processing (in accordance with the Updated Policy for Membership and Partner Application and Requirement). Task Force for Membership Benefits: The Task Force for Membership Benefits was established by the MRC Chairperson to assess Members’ level of satisfaction with the Association as a follow up on the prioritisation of Membership Benefits and Communications Initiatives. The taskforce is led by Antoinette McKain (Jamaica Deposit Insurance Corporation, Caribbean Regional Committee), supported by Julia Oyet (Uganda Deposit Guarantee Fund – Africa Regional Committee), Jose Luis Ballesteros Corrales and Borja Peletero Diz (Fondo de Garantía de Depósitos de Entidades de Crédito – Europe Regional Committee) and Jose Villaret Jr. and Ma. Saddy Mila Ena Rillorta (Philippine Deposit Insurance Corporation – Asia Pacific Regional Committee). The committee held a conference call in September 2019 and has defined the Terms of Reference for the Taskforce. The year 2019 has been a record breaking year as the Association welcomed 10 new joiners - including aforementioned the Central Bank of Belize (Associate) and the Bermuda Deposit Insurance Corporation (Member); which joined in the second half of 2019.

	Training and Technical Assistance Council Committee (TTAC) - Chaired by Diane Ellis, United States
	The TTAC in coordination with the Training and Conference Technical Committee (TCTC) and the Technical Assistance Technical Committee (TATC), reports the following activities:
	Requests for Technical Assistance: The TATC asked Regional Committee Chairpersons to update the requests for technical assistance within their region. Regional Committee Chairpersons validated the scope of the requests and the potential to meet the request from within the region – if not, the request will be shared with the TATC to explore provision of assistance by Member(s) from other regions. To this end, the Technical Assistance survey was circulated in early November 2019, which will help the STTAA identify both outstanding requests for assistance as well as identify those IADI Member organizations with particular areas of expertise in relation to the CPs who are willing to provide resources to match those needs. IADI Self-Assessment and Technical Assistance Program (SATAP): Two SATAPs have been completed in Ecuador and Trinidad & Tobago. The onsite visits for both SATAPs occurred in August 2019, and the reports are being finalised. Other jurisdictions have registered their interest and a SATAP is being planned. Expert Training: The Expert Training Strategy, approved by the TTAC, is a proposal to develop a structured program for training IADI Members and their staffs in the Core Principles. The strategy outlines a four-staged process for an IADI Member to gain expertise in the Core Principles. In line with the approved Expert Training Strategy, and subject to the limitations of training resources provided to the Secretariat, the TCTC will: discuss implementation of the Strategy with the STTAA; assist the STTAA in establishing the Expert Training Working Group; develop the Core Principles Practitioners Workshop; and refine and standardise the Expert Training Workshop. FSI-Connect Tutorials: The STTAA initiated the process of working with the FSI to update the “Conducting a Core Principles Assessment” tutorial, to be launched as a new suite of tutorials in March 2020. The TCTC selected the Reimbursement tutorial as its second tutorial to review and update by the end of Q1 2020.

Update from the IADI Secretariat Research Unit and the 2019 Annual Survey

The IADI Research Unit (RU) collaborated with the FSI with regards to an Insights Paper on “Bank failure management - the role of deposit insurance” published in August 2019. The paper is available at
https://www.bis.org/fsi/publ/insights17.htm and a brief summary is below.

Managing bank failures is complex and costly. One way to expand the toolbox and fund its use is through the role of deposit insurance schemes (DIS). Where permitted by the applicable legal framework governing deposit insurance and crisis management, DIS may facilitate and support alternative measures to payout of insured deposits. Based on survey responses from around 50 International Association of Deposit Insurers (IADI) members, the paper reviews practices for the use of DIS resources for alternative measures. More than 30 of those DIS can help fund alternative measures, such as purchase and assumption transactions, bridge banks, or capital and liquidity support. The paper discusses how DIS support for these measures can complement bank insolvency and resolution frameworks and expand the toolbox for bank failure management.

The Senior Policy and Research Advisor represents IADI in the team for conducting FSB peer review of South Africa. South Africa is the only FSB jurisdiction without an explicit framework for protection of small depositors and the authorities have been working to introduce an explicit deposit insurance system. The report has been finalised and will be published in early 2020.

Other papers in progress by the RU:

Paper on digital stored value products with the Alliance for Financial Inclusion (in draft)
IADI Working Paper on ‘The geographic dynamics of deposit insurance’ (in draft)

The ISDMS and 2019 Annual Survey

The IADI Survey Data Management System (ISDMS) Project was finalised. The RU has worked with Sitrox to design and implement a new tool for collecting, storing and managing information on deposit insurance systems worldwide. The RU has been guided by a Project team led by the Senior Policy and Research Advisor. Over the coming months, the RU will continue working with Sitrox to further improve the ISDMS and overall experience of survey participants.

So far, the 2019 IADI Annual Survey and two ad hoc survey requests have been conducted using the new tool. The results of 2019 IADI Annual Survey are expected to be published in December 2019. The IADI Annual Survey forms the most comprehensive source of deposit insurance information globally, and is utilised extensively for research initiatives and policy decision making. We extend our appreciation to IADI Members, Associates and Partners for their continued support to the IADI data and research initiatives.

Overall, the survey results show that jurisdictions continue to strengthen their deposit insurance systems and are moving towards greater compliance with the IADI Core Principles for Effective Deposit Insurance Systems.
To find the details, please see the 15 Key features (available on the IADI public website), full data (eBIS sign-in is required), and the press release.

The IADI Secretariat bid farewell to Sarah Ensner in September 2019. She provided many valuable perspectives throughout the ISDMS project. Her business analysis expertise ensured successful delivery of the ISDMS tool.

Additional events, trainings and conferences (July to December 2019)

4th Americas Deposit Insurance Forum and Regional Committee Meetings, 24-26 July 2019, Cartagena, Colombia
Fondo de Garantías de Instituciones Financieras (Fogafín) hosted the 4th Americas Deposit Insurance Forum and Regional Committee Meetings (LARC, RCNA and CRC) from 24 to 26 July 2019 in Cartagena, Colombia. The purpose of the forum was a discussion on two aspects that were identified as critical by the regional committees, IADI Core Principle 4 – Relationships with other safety-net participants, with an emphasis on the relationship with financial supervisors; and Core Principle 9 – Sources and uses of funds, analysing the investment strategies, its rationale and way forward. The event was attended by approximately 75 participants from 20 jurisdictions, including representatives from non-IADI member organisations. During the Regional Meetings, participants had the chance to participate in a high-level exchange of views on the strategic planning processes and the research projects undertaken by deposit insurers in the Americas. These sessions provided a platform to discuss current developments, emerging trends and issues, and learn best practices, using a new presentation format that allowed for high interaction between presenters and participants	Click the image to enlarge

59th EXCO Meeting and Joint FSI-IADI Conference, 2-5 September 2019, Basel, Switzerland
The 59th Executive Council (EXCO) Meeting was hosted by IADI on 2-3 September 2019 in Basel, Switzerland. The discussion focused on the Working Group on New Funding Options’ (WGNFO) Report “Proposed Strategy for Advancing Training, technical Assistance and Research to Meet Phase II Strategic Objectives”, and the EXCO recommended the Report including a Differentiated Fee Model, and the proposed changes to the IADI Statutes to accommodate them, to the Annual General Meeting for approval. The Financial Stability Institute (FSI) and the IADI jointly held the ninth FSI-IADI Conference at the Bank for International Settlements in Basel, Switzerland on 4 and 5 September 2019. The conference was titled “Crisis management, resolution and deposit insurance: what’s next and how to prepare” and was attended by over 170 officials from supervisory and resolution authorities, central banks and deposit insurers.

Africa Regional Committee Annual Meeting and Conference, 15-19 September, Kampala, Uganda
The Deposit Protection Fund of Uganda (DPF) and the Bank of Uganda hosted the Africa Regional Committee (ARC) Annual Meeting and Conference on the theme ‘Why Deposit Insurance?’. The event took place on September 15-19, 2019 in Kampala, Uganda. The Conference was officiated by the Minister of Finance, Planning and Economic Development (MoFPED) of the Republic of Uganda. The Governor of the Central Bank gave a few opening remarks on the role of deposit insurance in promoting financial sector stability. The event attracted participants from over 16 African countries, of which 6 jurisdictions do not have explicit DIS in place. Speakers were sourced from the World Bank, Toronto Center and IADI. The main purpose of the Conference was to share regional and global experiences on how effective deposit insurance systems contribute to enhance public confidence in the financial sector and ultimately to the financial stability. The IADI Core Principles discussed during the conference were CP 2 and CP 3 which address mandate and corporate governance, respectively. See Details: Speeches, Presentations, photos & Video Highlights.	Click the image to enlarge

1st IADI APRC Study Visit Program, 18-19 September 2019, Seoul, Korea
The Korea Deposit Insurance Corporation (KDIC) held “The 1st IADI APRC Study Visit Program” on 18-19 September in Seoul, Korea. In the program, the participants had the chance to visit and have in-depth looks into the financial safety net players of Korea. As well, sessions were held to share the views of various parties – APRC members, academia and etc. – on financial safety net systems. In total, more than 50 participants from 14 jurisdictions attended the program, and the participants were comprised of both high-level management and working-level officials. In addition to expanding the perspectives of the participants, the program was committed to adding value by acting as a networking platform for the APRC members.	Click the image to enlarge

Africa Regional Committee Technical Assistance Workshop, 18-22 November 2019, Accra, Ghana
The Ghana Deposit Protection Corporation (GDPC) and the Bank of Ghana (BOG) jointly hosted the 2019 ARC Technical Assistance Workshop on 18-22 November 2019, in Accra, Ghana. The theme of the Conference was “Deposit Protection – A Catalyst for Financial Stability", and the event was attended by approximately 146 participants from 24 jurisdictions. The main purpose of the Workshop was to allow for close interaction among experts working in different areas of regulation and financial stability to share regional and global experiences on how effective deposit protection system is an important pillar of trust and confidence in the financial sector thereby enhancing financial stability in the economy. Speakers were sourced from IADI Members and renowned deposit insurance systems (DIS) within the Africa Region. As part of the five-day conference, members were taken through presentations and they shared their experiences spanning across issues such as Deposit Insurers Role in Contingency Planning and Crisis Management, Failure Resolution Systems and Reimbursement Systems and Practices. Presenters from the FDIC, US; DFG, Spain and the DIA Russia took delegates through case studies to offer delegates an insight into how various resolution tools have been employed in their jurisdictions and the issues and challenges with employing those resolution tools. Panellists from telecom service providers like MTN, Vodafone and Airtel/Tigo as well as delegates from the DIS in Nigeria and Rwanda discussed the current issues with coverage and reimbursement of Mobile Money Deposits. This is considered an important area in deposit insurance coverage because of the financial inclusion agenda drive in most of the African Countries. At the same time, it is a grey area because of the many challenges and the lack of experience in pay-outs.

The Nigeria Deposit Insurance Corporation Signed MOUs with the Korea Deposit Insurance Corporation and the Central Deposit Insurance Corporation (Chinese Taipei)
The Nigeria Deposit Insurance Corporation (NDIC) signed a Memorandum of Understanding (MOU) with the Korea Deposit Insurance Corporation (KDIC) on 7 August 2019 in Seoul, and with the Central Deposit Insurance Corporation (CDIC), Chinese Taipei on 12 August 2019 in Taipei City, on a wide range of issues intended to facilitate the robust implementation of the DIS in their respective jurisdictions. The MOU signed between NDIC and KDIC, and between NDIC and CDIC provided for effective international working relationship between NDIC and the counterparties along with the enhancement of their roles in financial regulatory initiatives and policy deliberations. Also, there will be periodic exchange of staff between NDIC and the counterparties as well as bilateral meetings on regular basis towards enhancing mutual understanding that promotes the development of the DIS in Nigeria, Korea and Chinese Taipei.
Click the image to enlarge Click the image to enlarge

2nd International Seminar and Workshop, 21-22 August 2019, Nusa Dua, Bali, Indonesia
The Indonesia Deposit Insurance Corporation (IDIC) hosted the 2nd International Seminar and Workshop in Nusa Dua, Bali on August 21-22 2019 to discuss the global economic and financial outlook and challenges for enhanced bank resolution frameworks. With the theme “Facing a Softening Global Economy: The need to Strengthen Bank Resolution Preparedness”, the seminar aimed to generate discussions, and served as a platform for experience and knowledge exchange among prominent speakers in terms of global economic and financial outlook, challenges, lessons learnt and success stories of deposit insurers and resolution authorities. Followed by a Workshop on “Challenges in Managing Crisis Simulation”, both events were attended by deposit insurance agencies, bank resolution experts, representatives from international organisations, local bankers as well as researchers and academics.	Click the image to enlarge

Nigeria Deposit Insurance Corporation’s 30th Anniversary and book presentation
On the occasion of its 30th Anniversary this year, the Nigeria Deposit Insurance Corporation (NDIC) held a Public Lecture and Book Presentation in Abuja on 21 October 2019. The topic of the lecture was “Emerging Risks and Corporate Governance Issues in Banking”, and featured speeches by Prof Yemi Osinbajo, Vice President of Nigeria; Senator Dr Ahmed Ibrahim Lawan, President of the Senate of Nigeria; Mrs Ronke Sokefun, Chairman of the NDIC Board; Mr Alhaji Umaru Ibrahim, CEO of the NDIC; and others. Vice President Osinbajo also unveiled the Book “Thirty Years of Deposit Insurance System in Nigeria”. IADI congratulates the NDIC, its founding Member since 2002, and wishes it further success.	Click the image to enlarge

KDIC Global Training Program: Resolution & Recovery Course, 4-8 November 2019, Chungju and Seoul, Korea
The Korea Deposit Insurance Corporation (KDIC) held its “KDIC Global Training Program: Resolution & Recovery Course” from 4 to 8 November 2019 at the KDIC Global Academy, Chungju, Korea. Twenty two officials from 16 jurisdictions attended this program. The aim of this program is to improve the participants’ practical knowledge and skills in resolution and recovery. The course covered various topics and cases in the field of resolution and recovery, including deposit insurance payout and insolvency investigation. The participants also shared their own experiences on resolution and engaged in active discussions with each other. An expert from the World Bank, Mr. Sameer Goyal, was invited as a speaker and delivered a special lecture on the Financial Safety Net and Resolution. After the classes, participants got a chance to experience Korean culture by dyeing textiles using traditional methods, making Korean sweets and etc. A program sketch video of this program can be found in the KDIC Youtube channel.		Click the image to enlarge

6th Malaysia Deposit Insurance Corporation Africa Open House, 20-21 November 2019, Kuala Lumpur, Malaysia
The Malaysia Deposit Insurance Corporation (MDIC) hosted its Sixth Open House for the African Region from 20 to 21 November 2019. A total of 11 delegates from five jurisdictions within the African region attended the event. Topics covered included an overview of Malaysia’s differential premium system, target fund framework, crisis preparedness and resolution planning, intervention and failure resolution framework, and enterprise risk management. The Islamic Financial Services Board (IFSB) was also invited to share some of its recent developments including its collaboration with the IADI on the Core Principles for Effective Islamic Deposit Insurance Systems. Both the delegates and MDIC staff expressed great satisfaction with the event as they were able to learn valuable lessons from the discussions that took place over the two days.

Other events attended by IADI Secretariat Members
4th Working Group Meeting on the Core Principles for Islamic Finance Regulation: Effective Islamic Deposit, 23 July 2019, Nur-Sultan, Kazakhstan 10th Financial Stability Task Force Meeting, 4-5 September 2019, Abu Dhabi, United Arab Emirates - Mr Mohamed Mahraoui, Moroccan Deposit Insurance Corporation (SGFG), represented IADI as a speaker for the session on “The Role of Deposit Insurance in Bank Resolution Framework”. BIS Symposium on Stablecoins, 16 September 2019, Basel, Switzerland (attended by SPRA) FSB Resolution Steering Group and CGFS-ReSG workshop on interactions between liquidity assistance and resolution funding, 18-19 September 2019, Basel, Switzerland (attended by SPRA) IMF meeting on FinTech Cooperation for Standard Setting Bodies, 15 October 2019, Washington D.C., USA European Bank for Reconstruction and Development Workshop on Deposit Insurance, 4 November 2019, London, UK BIS-WB workshop on “FinTech and financial inclusion – the experience so far”, 5-6 November 2019, Basel, Switzerland Joint esisuisse/EFDI/University of Zürich Symposium on the Latest Developments in Deposit Insurance, Resolution and FinTech, 15 November 2019, Zürich, Switzerland

New IADI Participants


	Bermuda Deposit Insurance Corporation The Bermuda Deposit Insurance Corporation (BDIC) was established in 2011 by the Act of Parliament and became operational in August 2016. In addition to the Deposit Insurance Act (2011), the BDIC’s activities are regulated by the Deposit Insurance Rules (2016) and the Deposit Insurance Amendment Rules (2019). The DIS membership is mandatory and there are four member banks at present. The maximum coverage limit is USD 25,000, and the system is funded ex-ante with a flat rate for premiums. A Code of Practice is currently being developed, to articulate BDIC’s involvement in the process of handling a systemic crisis. The Member application was represented by Stephen Todd, JP, Chairman of the Board.

	Central Bank of Belize The Central Bank of Belize was established under the Central Bank of Belize Act in 1982. The Bank is guided in all its actions by the objective of fostering monetary stability that promotes the growth of the economy of Belize. In pursuit of this objective, the Bank performs the following functions: provides economic advice to the Government of Belize; provides banking services to commercial banks, Government of Belize and public-sector organizations; issues monetary notes and coins in Belize; supervises and regulates the financial system; facilitates securities market transactions; and others. The deposit insurance system in Belize is expected to get started in 2020. The Associate application was represented by the Central Bank’s Governor Audrey Joy Grant.

Forthcoming events


61st IADI Executive Council meeting
11-13 February 2020 \| Bank for International Settlements, Basel, Switzerland
Europe Regional Committee Annual Meeting and International Conference
2-4 April 2020 \| Palermo, Italy Hosted by the Interbank Deposit Protection Fund (FITD)
Middle East and North Africa (MENA) Technical Assistance Workshop
April 2020 \| Morocco (Date: TBD) Hosted by the Moroccan Deposit Insurance Corporation (SGFG)
5th Americas Deposit Insurance Forum
April 2020 (Date, Venue, Host: TBD)
62nd IADI Executive Council Meeting and International Conference
11-15 May 2020 \| Taipei City, Chinese Taipei Hosted by the Central Deposit Insurance Corporation
18th Asia-Pacific Regional Committee Annual Meeting and International Conference
1-3 July 2020 (Date: TBC) \| Kuala Lumpur, Malaysia Hosted by the Malaysia Deposit Insurance Corporation
Africa Regional Committee Annual Meeting and Conference
19-25 July 2020 \| Victoria Falls, Zimbabwe (Date, Venue: TBC) Hosted by the Deposit Protection Corporation
Asia-Pacific Regional Committee Technical Assistance Workshop
August 2020 \| Philippines (Date, Venue: TBD) Hosted by the Philippine Deposit Insurance Corporation
19th IADI Annual General Meeting and Annual Conference
26-30 October 2020 \| Buenos Aires, Argentina Hosted by the Seguro de Depositos Sociedad Anonima

Other updates and forthcoming events

FDIC 101: An Introduction to Deposit Insurance, Bank Supervision, and Resolutions The first session: 24 - 28 February 2020, Arlington, USA The second session: 2 - 6 November 2020, Arlington, USA FDIC Bank Resolution Experience (BRE) Training Program June 8 – 19, 2020 in Dallas, Texas, USA Organised by the Federal Deposit Insurance Corporation (FDIC)
12th DICJ Round Table 10 - 11 March 2020, Kyoto, Japan Organised by the Deposit Insurance Corporation of Japan (DICJ)

New books and papers


	• Technical Note, Deposit Insurance Treatment of E-Money: An Analysis of Policy Choices, October 2019 (https://www.cgap.org/research/publication/deposit-insurance-treatment-e-money-analysis-policy-choices; https://www.cgap.org/blog/deposit-insurance-last-line-defense-e-money) • FSI Insights Paper, Varying shades of red: how red team testing frameworks can enhance the cyber resilience of financial institutions, 15 November 2019 (https://www.bis.org/fsi/publ/insights21.htm) • IMF Working Paper, Designing Central Bank Digital Currencies, 18 November 2019 (https://www.imf.org/en/Publications/WP/Issues/2019/11/18/Designing-Central-Bank-Digital-Currencies-48739) • Podcast, Amit Seru discusses the policy challenges of the fintech revolution, 10 October 2019 (http://bispodcast.libsyn.com/amit-seru-discusses-the-policy-challenges-of-the-fintech-revolution)

The International Association of Deposit Insurers (IADI) was formed in May 2002 to enhance the effectiveness of deposit insurance systems by promoting guidance and international cooperation. Members of the IADI conduct research and produce guidance for the benefit of those jurisdictions seeking to establish or improve a deposit insurance system. Members also share their knowledge and expertise through participation in international conferences and other forums. The IADI currently represents 92 deposit insurers, 9 Associates and 14 Partners. The IADI is a non-profit organisation constituted under Swiss Law and is domiciled at the Bank for International Settlements in Basel, Switzerland.