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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 July
to December 2021, as well as on upcoming IADI activities.
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This issue includes:
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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 the past six months. The IADI
Secretariat looks forward to further contributing to the advancement
of IADI in 2022.
We also look forward to seeing you virtually
during our scheduled meetings in 2022 and hope and pray that by this
time next year we will be able to all meet again.
Happy
holidays and the very best for the new year!
David
Walker
Secretary General
International Association of
Deposit Insurers |
Season's greetings from the IADI Secretariat
Message from David Walker, IADI Secretary General
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 Let
me express my sincere appreciation to all IADI Members, Associates
and Partners for your support in the furtherance of IADI’s mission
over the past six months. IADI has continued to adapt to the
continuing uncertainty of the pandemic by reporting on developments
and leveraging technology to deliver training, capacity building,
research and guidance to the IADI community in this challenging
time.
For the second time in IADI’s history the Association held
elections entirely via correspondence voting during its AGM. As a
result, we are happy to congratulate our five newly elected
Executive Council (EXCO) José María Fernández Real (FGD Spain),
Fatin Rüştü Karakaş (SDIF Turkey), Tae-hyun Kim (KDIC Korea)
Hidenori Mitsui (DICJ Japan) and Alfredo Pallini (FITD Italy) and
our returning Treasurer, Mr Roberto Tan of the Philippines Deposit
Insurance Corporation.
In addition to holding our six Executive Council (EXCO) meetings
of the year virtually, we held another series of the President and
Secretariat’s Reaching Out and Debriefing Sessions for Members,
Associates and Partners to let you know more about the Association’s
work and to receive feedback on our goals, work streams and areas in
need of further development.
Following the approval by EXCO of the Strategic Planning Working
Group (SPWG) Final Report, the IADI Strategic Goals and Objectives:
2022-2026 was developed and related objectives and action plans
incorporated into the IADI Business Plan for 2022-24 and supporting
budgets. A strategic scorecard and key performance indicators will
also be developed and incorporated into the Association’s business
planning process.
Other important initiatives were carried out by the Training and
Technical Assistance Council Committee (TTAC), supported by the
Secretariat Training and Capacity Building Unit (TCBU), including
progressing in the establishment of a Core Curriculum for workshops
designed for different audiences and implementing the Expert
Training Strategy. The enhanced roster of Core Principles Experts,
has now grown to 17 persons and will form the basis for building and
strengthening much of the future work IADI will pursue in training
and capacity building.
The TCBU also wrapped up a pilot test of the first cycle of 12
virtual training sessions for the Expert Training Working Group, the
second stage of the Expert Training Strategy, and is analysing the
need for additional sessions to brief participants on the dynamics
of the on-site visit and provide training on leading a SATAP team.
Work is continuing on a proposal for a programme to deliver the
first session of the Practitioners Workshop in a virtual format if
necessary.
The TCBU also continued developing its Technical Assistance
Framework, which will allow IADI Members to request and obtain
technical assistance through the Secretariat. The process included
contacting 21 jurisdictions to confirm technical assistance
requests, confirming 13 jurisdictions as providers for the Technical
Assistance Framework, and initiating work on 8 specific requests.
A key accomplishment for the Association has been the shift to
virtual and remote training due to the Covid-19 pandemic, as
in-person TAWs have been put on hold the past year. The TCBU, in
collaboration with the Capacity Building Technical Committee (CBTC),
developed the Remote Training Guidance to assist Members looking to
organise or host virtual training events. Eleven virtual training
events have now been conducted with more than 1,649 participants
from the IADI community, a record number of attendees for IADI.
The second batch of FinTech Briefs – E-money and deposit
insurance in Kenya and Central Bank Digital Currencies: the
motivation were published by the Secretariat Research Unit (RU) as
well as Policy Briefs on: Climate change fever: can deposit insurers
stay cool and Five emerging issues in deposit insurance. The RU also
worked closely with the Financial Stability Board (FSB) Secretariat
and selected IADI Members on an “Issue note in relation to
resolvability of non-globally systemically important banks” and
conducted a joint IADI-FSB Resolution Steering Group workshop on
resolution issues and cooperative banks, including IADI Resolution
Issues for Financial Cooperatives.
In the area of Core Principle (CP) monitoring and compliance
assessment, the RU and Core Principles Research and Guidance Council
Committee (CPRC) finalised work on the CP Monitoring and Compliance
Assessment Framework and established a review team for CP 1, 2, 3
and 11. The team has now distributed its first questionnaire to the
IADI membership on these specific CPs.
The 2021 IADI Annual Survey was completed and a noteworthy new
survey on “Deposits During the Pandemic” was released exploring for
the first time depositor behaviour during the Covid-19
pandemic. IADI, is also working with the academic community on the
development of three research papers related to Covid-19 crisis
containment in financial systems, pricing deposit insurance using
Machine-Learning tools and a case study on resolutions in Poland and
their impact on depositor confidence.
During the last half of 2021 we have been very
fortunate to welcome three new IADI Members: the Fundo de Garantia
de Depósitos (Portugal), the Fund for Guaranteeing Citizens’
Deposits in banks of the Republic of Uzbekistan and the Deposit
Insurance Agency (Georgia). We would also like to welcome the Bank
of Botswana as an Associate and the International Association of
Restructuring, Insolvency & Bankruptcy Professionals (INSOL
International) as IADI’s newest Partner.
In closing, as we move into 2022, which marks IADI’s 20th
Anniversary, we wish you all Seasons Greetings and the very best of
success in the new year!
David Walker
Secretary General
International
Association of Deposit Insurers
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Highlights
from the 2021 Annual General Meeting
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20th Anniversary Celebration and
Conference
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The IADI marks the 20th Anniversary on 6 May
2022 next year. To commemorate this momentous occasion, the IADI will
host the 20th Anniversary Celebration and Conference in May 2022
(TBD).
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< It's already 10 years ago! > |
The
event envisages the opportunity to reflect on IADI’s achievements over
the past 20 years and its opportunities ahead. The event would make
use of a hybrid format to provide participants with both virtual and
physical participation to have a wider audience to the extent
possible.
The details (date, meeting format, etc.) of the
event are subject to change depending on the situation of the Covid-19
pandemic and related restrictions.
More details will be announced in Q1 2022.
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Save the Date: October 2022 (TBD) - 2022 IADI Annual General Meeting and Annual Conference
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Save the Date
The 2022 IADI Annual General Meeting and Annual Conference will be hosted by the Seguro de Depósitos SA (SEDESA) in Buenos Aires, Argentina
in October 2022.
Registration details and Programme information will be
available as of spring 2022.
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Short summary of Executive Council Meetings
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The 70th and 71st EXCO Meetings were virtually
held on 22 September and 29 November 2021, respectively.
At the 70th EXCO Meeting, two
prior correspondence approvals of the membership applications from the
Bank of Botswana (Associate) and the Fundo de Garantia de Depósitos,
Portugal (Member) were ratified. The EXCO approved the updated draft
IADI Strategic Goals and Objectives: 2022–2026 and recommended it for
Members’ consideration. The EXCO also discussed the issue on the
Association’s audit format and concurred with the recommendation of
the Audit and Risk Council Committee that the Association should
change its audit format from “Limited statutory examination” to
“Ordinary Audit”.
The 71st EXCO Meeting was held
during the week of the 2021 Extraordinary General Meeting for Members
(EGM). Following the updates on the 2021 AGM results and EGM
preparations, two prior correspondence approvals of the
membership/partner applications from the Deposit Insurance Agency,
Georgia (Member), the Fund for Guaranteeing Citizens’ Deposits in
banks of the Republic of Uzbekistan (Member) and the International
Association of Restructuring, Insolvency & Bankruptcy Professionals
(INSOL International, Partner) were ratified. The EXCO also appointed
Mr Michel Canta as Chairperson of the Latin America Regional Committee
for a three-year term.
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Announcement regarding Secretariat member
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New Secretariat Member
Ms Tri Wahyuni will be joining IADI
Secretariat in January 2022 from the Indonesia Deposit
Insurance Corporation (IDIC). Ms Wahyuni has been Director of
Resolution Method Analysis Group at the IDIC since April 2020.
She is in charge of preparing the least cost test as part of
Boards consideration (to decide the resolution options for
failing banks) and assessing banks’ resolution planning.
Previously, she was responsible as Division Head in
Surveillance and Financial System Stability Group at the IDIC
since April 2017. Her responsibility is to monitor commercial
banks’ financial performance and conduct close coordination
with the Financial Services Authority (OJK) and the central
bank (Bank Indonesia).
Formerly, she served in Bank Resolution Group since
April 2010 with main obligations to oversight and to prepare
the divestment of bank under IDIC resolution. Before joining
IDIC, she worked as corporate banker at Bank Mandiri, one of
state-owned banks in Indonesia, for seven years.
She holds a master’s degree in International Business
Economics from the City University of London.
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Executive Council approval of new Chairperson for
the Latin America Regional Committee
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The EXCO approved the appointment of new Chairperson for
one region, as follows:
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Latin America Regional Committee |
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Michel Canta
Fondo de Seguro de Depósitos (Peru)
for a three-year term |
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Hightlights from
the IADI EGM Outlook Conference
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The IADI EGM Outlook Conference was virtually held on 3
December 2021. More than 270 participants from 117 institutions in 87
jurisdictions worldwide attended the events.
The IADI EGM Outlook Conference, titled “Where we are
and where we are going”, was introduced by Secretary General
David Walker and featured presentations and panel discussions by top
policymakers and deposit insurers on key issues affecting the
perception of the global economy and financial stability from the
perspective of eminent IADI Partners.
In his opening remarks, IADI President Yury O. Isaev,
welcomed the participants and highlighted IADI’s aim to build more
effective deposit insurance systems and promote global financial
stability. IADI continues its policy-oriented research on key issues
affecting deposit insurance systems, and its efforts to enhance
compliance with IADI Core Principles for Effective Deposit Insurance
Systems, while delivering training and capacity building services to
Members. These initiatives benefit the IADI Members and enhance IADI’s
relationships with international financial institutions.
 Whilst
opening Session I “Financial Stability and Deposit Insurance in the
Eyes of our Partners”, Mr Jan Nolte, Senior Financial Sector Expert of
International Monetary Fund (IMF), delivered a presentation on the
IMF’s deposit insurance’s related activities. The IMF along with the
World Bank (WB) delivers the Financial Sector Assessment Program
(FSAP) which provides a comprehensive and in-depth analysis of a
country’s financial sector and Technical Assistance to countries which
encompass crisis management, bank resolution and deposit insurance.
The IADI Core Principles for Deposit Insurance Systems are used as an
international benchmark and standard for both. As a majority of
jurisdictions have implemented public measures to support their
banking sectors during the Covid 19 pandemic, Mr Nolte emphasised the
importance of contingency planning by the financial safety net players
including deposit insurers and timely unwinding of these measures.
 Mr
Danilo Palermo, Senior Financial Sector Specialist of The World Bank
Group, noted in his speech that the technical assistance delivered by
the WB is in very high demand, both by mature deposit insurers, which
experience an expanding scope of coverage as well as newly established
deposit insurance systems. Ongoing WB research relevant for deposit
insurers, includes the regulation and supervision of FinTech, the
resolution of state-owned banks and cooperatives, developing best
practices in bank insolvency, as well as climate change and its effect
on deposit insurance systems.
 Closing
the first session, Ms Ruth Walters, Senior Advisor of the Financial
Stability Institute (FSI), provided an overview of the FSI core
activities and special projects, emphasising the existing cooperation
between the FSI and IADI, and highlighting the joint effort to deliver
the Bank Resolution Online Course (BROC) in 2022. Ms Walters provided
an overview of deposit insurance related FSI research papers as well
as of the FSI’s trainings and capacity building programs of interest
to IADI members.
 In
the first part of the Session II “New IADI Benefits in Research,
Guidance, Training and Technical Assistance”, Ms Yvonne Fan, Executive
Vice President of Central Deposit Insurance Corporation (Chinese
Taipei) and Mr Bert Van Roosebeke, IADI Senior Policy and Research
Advisor, jointly highlighted the achievements of IADI in Research and
Guidance activities, featuring 19 guidance papers, 27 research papers
and five policy briefs, covering both conventional and emerging trends
topics including the Core Principles for Effective Deposit Insurance
Systems, a guidance paper on resolving financial cooperatives and a
research paper on coverage level and scope issued or to be issued this
year.
 Mr
Van Roosebeke presented the latest developments in deposit insurance,
based on the 2021 IADI Annual Survey, covering mandates, payouts and
the method of premium levying by deposit insurers around the globe. In
addition, five emerging issues in deposit insurance were presented;
ranging from climate change, digitisation, the Covid-19 pandemic,
deposit insurers’ role in resolution, and cross-border cooperation.
IADI’s research and policy work in these areas and the
ongoing research cooperation with international standards setters was
highlighted. Mr Van Roosebeke also provided insights into the
currently ongoing IADI Core Principles thematic assessment as well as
the process for updating the Core Principles, which will be initiated
in 2022.
 During
the second part of this session, Ms Diane Ellis, Director
of Division of Insurance and Research, Federal Deposit Insurance
Corporation (USA), Mr Anthony Sinopole, Director of
International Affairs, Federal Deposit Insurance Corporation (USA) and
Ms Eugenia Alamillo, IADI Senior Training and Technical
 Assistance
Advisor, highlighted that the training and
capacity building activities led by the Association, a key Member
benefit, offered new opportunities for the IADI community in the
following areas: 1) assessing compliance with the IADI Core Principles
for Effective Deposit Insurance Systems; 2) virtual events; 3)
programs and joint initiatives with other international financial
institutions; and 4) technical assistance.
 The
panel recognised the role of training and capacity building as a key
membership benefit for the IADI community, and the IADI Secretariat
Training and Capacity Building Unit took this opportunity to unveil
the new training and capacity building site, offering a one-stop-shop
solution for training and technical assistance on deposit insurance
matters.
In his closing remarks, Mr Alejandro Lopez, IADI Vice Chair
of the Executive Council and General Manager, Seguro de Depósitos
Sociedad Anónima (Argentina), emphasised the fruitful cooperation
between the IADI research and training units towards achieving the
IADI Strategic Goals. He noted that IADI will be celebrating its 20th
anniversary in 2022, presenting the IADI Members with an opportunity
to reflect on our joint achievements and opportunities as we look at
where we are going.
A link to the Annual Conference presentations may be found here
(eBIS sign-in is required), along with the Press
Release.
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Key
achievements and updates from the
Council Committees and their Technical
Committees
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Audit and Risk Council Committee (ARCC) - chaired by
Sonja Lill Flø Myklebust, Norway |
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- Appointment of External
Auditor for FY 2021/22 ending 31 March 2022: Recommended to EXCO
that AGM appoint PricewaterhouseCoopers (PwC) as External
Auditor and it was approved at the AGM held by correspondence in
November 2020, and ratified at the EGM held on 2 December 2021.
- IADI Enterprise Risk
Management (ERM) and Internal Control Framework: Provided
recommendations to the IADI Secretariat to improve the risk
assessment methodology and reporting for the IADI ERM and
Internal Control Framework.
- Audit format: Provided
recommendation to change from limited to ordinary audit of the
financial statements. The recommendation was approved at the AGM
held by correspondence in November 2021, and ratified at the EGM
held on 2 December 2021.
- Recommended setting up a
temporary committee on measuring achievements of the Strategic
Goals. This recommendation was presented and discussed at the
71st EXCO meeting.
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Core Principles and
Research Council Committee (CPRC) -
chaired by Yvonne Fan, Chinese Taipei
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New Members of the Committee: José María Fernández (FGD,
Spain).
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The Reimbursement Technical Committee (RTC) was newly
established in September 2021 to identify current and future
challenges faced by deposit insurers in reimbursement and to
contribute to the update of Core Principle (CP) 15. The RTC has
developed the business plan which was approved by the CPRC in
November 2021.
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The Periodical Review of IADI Guidance Papers Technical
Committee (PRTC) was newly established in October 2021 to review
and update guidance papers previously issued by IADI, which will
further contribute to the Core Principles update.
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Papers are being developed by the following CPRC
Technical Committees:
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Resolution Issues for Financial Cooperatives Technical
Committee: the draft Guidance Paper on “Ways to Resolve A
Financial Cooperative While Keeping the Cooperative Structure”
has been approved by the Executive Council for publication in
November 2021.
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Coverage Level and Scope Technical Committee: the draft
Research Paper on “Deposit Insurance Coverage Level and Scope”
was submitted to Executive Council for review and approval for
publication due by 10 December 2021.
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Financial Technology Technical Committee:
- The first batch of Fintech Briefs – “An Introduction
(Challenges for Deposit Insurers)”, “Data Standardisation”, and
“Machine Learning” – were finalised and published on the IADI
external Website in September 2021.
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E-money briefs series – “E-Money in the United Kingdom”
– a Case Study was published on the IADI external Website
in September 2021; Kenya case was published on the IADI
members-only Website for Members comments; Ghana case is
being reviewed by the Research Unit. Uruguay and Thailand
cases are in the process of revision by the Technical
Committee.
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Fintech Brief on “Central Bank Digital Currencies -
the Motivation” drafted by the Research Unit was published
on the IADI external Website in November 2021.
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Member Relations Council Committee (MRC) - chaired
by Mohamud Ahmed Mohamud, Kenya |
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- Membership: Continued to follow up the potential members in
close cooperation with Regional Committees and the IADI
Secretariat.
The EXCO approved the following
applications during the period covered:
- Fundo de
Garantia de Depósitos (Portugal) as a Member (September 2021)
- Bank of
Botswana as an Associate (September 2021)
- Fund for
Guaranteeing Citizens’ Deposits in banks of the Republic of
Uzbekistan as a Member (November 2021)
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International Association of Restructuring, Insolvency &
Bankruptcy Professionals (INSOL International) as a Partner
(November 2021)
- Deposit
Insurance Agency (Georgia) as a Member (will be joining in
January 2022)
- Secretariat Report on the Financial Statements for FY
2020/21 Q1 and Q2, and Cash Management Report per 30 September
2021: Review completed and the report was approved by EXCO.
- IADI Business Plan and Budgets: Reviewed the draft Business
Plan 2021/24 and draft Budgets (FY 2021/22 and FY 2022/23). The
Business Plan and Budgets were approved at the Annual General
Meeting.
- Membership Benefits Survey & Communications Strategy and
Priorities:
The MRC Task Force on Membership
Benefits was reconvened for the completion of the Membership
Engagement Survey, which was postponed in 2020 due to the ongoing
discussion on the IADI’s Strategic Planning Working Group. The Task
Force is currently reviewing the Survey to be launched in Q1 2022.
- Regional Committee Document
Standardisation:
The Working Group on Regional Committee
Documents Standardisation was newly established within the MRC in
line with the Business Plan and the MRC Work Plan. Preparation of
the Terms of Reference is underway.
- IADI Website Review and
Enhancement: The IADI Secretariat worked on the short-term
action items including the review of the sitemap and overall
website – A new section “News and Media” has been created and
the Training and Capacity Building Unit (TCBU) section
published.
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Training and Technical Assistance Council Committee (TTAC)
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Chaired by Diane Ellis, United States
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The TTAC in coordination with the
Capacity Building Technical Committee (CBTC) and the Training and
Capacity Building Unit (TCBU), reports the following activities:
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The Expert Training Strategy 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 and
become capable of leading Self-Assessment Technical Assistance
Program (SATAP) reviews, supporting Technical Assistance
Workshops (TAWs), and supporting or participating in the
IMF/World Bank FSAP reviews.
IADI hopes to hold the first Core Principles Practitioners
Workshop (first stage of the Strategy) in-person by Q3 2022.
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Membership Changes: Mr Tae-hyun Kim (KDIC Korea) replaced
Mr Seongbak Wi in the committee.
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The TTAC approved the Technical Assistance Framework (TAF)
at their November meeting. Please see the TCBU section for
more information on the TAF.
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CBTC created a Working Group (WG) with the TCBU, TTAC,
Research Unit (RU) and CPRC to develop a communication channel
with the CPRC for the purpose of developing a protocol for
closing out the SATAP Process, including identifying issues
with the CPs or guidance in the handbook. The WG has expanded
into a more comprehensive plan beyond the closing out
protocol, and they are in the process of creating a ToR to
align the goals of all parties involved.
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Each year, the CBTC Chairperson sends a solicitation for
workshops and webinars to Regional Chairs to create a calendar
of events in the upcoming FYs. In September, the CBTC
chairperson sent the annual solicitation and the calendar was
shared with the TTAC in November.
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The Self-Assessment Technical Assistance Program (SATAP)
provides an assessment of an IADI Member’s deposit insurance
agency (DIA). The purpose of the Program is for the review
team to work closely with the DIA to identify gaps in its
system relative to IADI Core Principles and outline possible
steps to address those gaps.
The TCBU received an official request
for a SATAP review from Zimbabwe. The request was approved by the
TTAC Chairperson and Secretary General in September. The review
team has been finalized and the kick off for the SATAP review will
take place by the end of 2021.
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Update from the IADI Secretariat Research Unit and the
2021 Annual Survey
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Response to the Covid-19 crisis
 The
IADI Research Unit (RU) has worked on a number of initiatives in
response to recent developments in the global economy relating to
Covid-19.
In May 2021, IADI published a Survey
Brief on the
Impact of the COVID-19 Pandemic on Deposit Insurance. The paper
offers key insights acquired through the IADI Follow-up Survey on
COVID-19 Implications for Deposit Insurers, conducted in January 2021.
This survey sought to gauge the impact of the Covid-19 pandemic crisis
on the financial sector and measures taken by regulatory authorities
and deposit insurers in response.
Detailed survey results are now available to IADI Members.
There is also an upcoming IADI Survey
Brief exploring a number of core deposit insurance metrics throughout
the pandemic period, including the evolution of covered deposits, fund
size growth and expectations by deposit insurers on developments in
deposits. This Brief is based on an October 2021 member survey
conducted by the Research Unit in conjunction with the State
Corporation Deposit Insurance Agency (Russian Federation). It is
expected to be available in January 2022.
CP monitoring and compliance assessment
In the area of Core Principle (CP)
monitoring and compliance assessment, the Research Unit completed the
development of the CP Monitoring and Compliance Assessment Framework
and introduced a thematic assessment programme in the first half of
2021.
Following the formal approval of two
documents: “Procedures for Conducting Thematic Assessments of
Compliance with the Core Principles” and “Implementation Plan to
operationalise the new thematic assessment programme”, an invitation
for Expression of Interest (EOI) for “Assessment Team Members for the
Thematic Assessment of Organisational Structure, reviewing CP 1
(Public Policy Objectives), CP 2 (Mandate and Powers), CP 3
(Governance), and CP 11 (Legal Protection)” was circulated to IADI
members and an assessment team has been established with balanced
regional representation.
The Assessment Team finalised work on a
questionnaire for reviewing CP 1, 2, 3 and 11 in close cooperation
with the Research Unit. Following CPRC review, a letter inviting
Members to participate in the questionnaire has been sent out in
October 2021. Members are invited to submit responses by 14 January
2022.
Research Initiatives
 In
September 2021, IADI Policy Brief No. 4 –
Five Emerging Issues in Deposit Insurance was
published. The Brief was prepared by the Research Unit and offers an
overview of five emerging issues that are expected to significantly
affect the activities of deposit insurers in the near future – climate
change, utilisation of financial technology (‘fintech’), Covid-19
policy implications, deposit insurers’ role in resolution, and
cross-border considerations.
The Research Unit also published
IADI Policy Brief No. 5 –
Climate Change Fever: Can Deposit Insurers Stay Cool?
in October 2021. It provides a first attempt at identifying core
challenges that climate change may pose to the activity of deposit
insurers and their ability to deliver on key objectives.
 In
October 2021, IADI Fintech Brief No. 5 –
Central Bank Digital Currencies: The Motivation
was published. The Brief was prepared by the Research Unit and
discusses the main motivations for central banks in exploring CBDCs,
along with presenting pertinent case studies.
The Research Unit also published
IADI Fintech Brief No. 6 –
E-money and Deposit Insurance in Kenya
in November 2021. It considers a case study on the widespread
usage of e-money in Kenya, and discusses challenges in how to deal
with a potential default of either the e-money issuer or the
float-taking bank and the role of deposit insurance in such a
scenario.
A number of additional papers are
due to be published in early 2022. These are IADI Fintech Briefs on
Design Issues for Retail CBDCs, Deposit Insurance Considerations for
Retail CBDCs, Stablecoins and the Role of climate in deposit insurers’
fund management.
Policy Initiatives
With support of the Research Unit,
on 26 October 2021, IADI and the Financial Stability Board’s
Resolution Steering Group organised a joint workshop on resolution
issues related to financial cooperatives. Julien Reid (AMF Québec
Canada and Chair of the respective IADI TC) co-chaired the workshop.
At the same time and with support from a number of IADI members, the
Research Unit is coordinating the IADI input to an FSB Issue Note on
Resolution Issues for non-GSIBs.
IADI Policy and Research Newsletter
The Research Unit has initiated a
quarterly newsletter designed to become the central source of
information on policy and research issues of relevance to deposit
insurers. The 2021Q4 edition was released in November 2021 as is
available
here.
IADI Podcast Series
 The
Secretariat Research Unit has initiated an IADI Podcast series, using
a new channel for disseminating and communicating IADI’s research as
well as other output of interest to the deposit insurance community.
The second podcast was issued in August 2021 and hosts Ryan Defina
from the Research Unit covering the recent IADI Policy Brief on
Banking Resolution: Expansion of the Resolution Toolkit and the
Changing Role of Deposit Insurers. The
podcast is now available at the
IADI Website. Further episodes will follow on a regular basis.
2021 IADI Annual Survey
The 2021 Annual Survey results were
published in November 2021. 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 who participated in the survey and for their continued
support to the IADI data and research initiatives.
 Survey
results from the 2021 Annual Survey showed 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 visit
IADI’s
Data Warehouse Section, where you can find data
on 15 Key features and an updated Chart Pack. The full data is
available to members only on
eBIS (sign-in is required).
Call for Paper Proposals
The IADI circulated a
call for proposals for external research and policy papers in
October 2021 and the application period is now closed. This initiative
provides an opportunity for academics and policy makers to submit
their research proposals for topics relevant to deposit insurance and
financial stability. Selected proposals will receive funding and
support from IADI.
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Update from the
IADI Secretariat
Training and Capacity Building Unit
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The Training and Capacity Building Unit (TCBU) has continued
to provide an array of virtual solutions to cater to the training
needs of the IADI community. In collaboration with the TTAC and CBTC,
it also has continued developing various capacity-building activities
and making progress in the development and implementation of the
Expert Training Strategy, all key components of the IADI’s Strategic
Goals.
Capacity Building
Financial Stability Institute (FSI) Connect Tutorials
 The
TCBU developed an updated version of the FSI Connect tutorial on
Premiums and Fund Management, converting and updating one (1) tutorial
into five (5) stand-alone tutorials on Funding a Deposit Insurance
System. The tutorials provide IADI Members with updated guidance on
sources of funds, assessing and collecting premiums, and managing the
deposit insurance fund.
Furthermore, the TCBU
updated the report on the usage of the FSI-Connect licenses provided
by IADI to Members and Associates, and recommended strategies to
consolidate this tool as a Member benefit. These strategies include
assistance from Regional Committee Chairs to
encourage usage, implementing a targeted approach to provide
information on usage to each Member once a year, periodically
verifying user accounts, and providing history of usage.
Bank Resolution Online Course (BROC)
 The
FSI, IMF and IADI are developing a new Bank Resolution Online Course
(BROC), the first version of which will take place from early February
to early April 2022 and will include five Modules. The course is aimed
at staff working in bank resolution policy, planning or execution who
are relatively new to the topic. It is therefore designed to give a
broad wide overview of bank resolution frameworks and tools,
resolution strategies and resolvability, the role of deposit insurance
in bank failure management, and operational challenges in executing
resolution.
The TCBU worked with
the IMF to develop the content for Module 4 "protecting depositors".
This module will cover the role of deposit insurers in liquidation and
depositor reimbursement, including aspects such as least-cost
calculation, depositor preference, single customer view, and
communication during regular and crisis times.
Expert Training Strategy
Implementing the Core Principles Practitioners Workshop
The TCBU
prepared an eleven (11) week virtual format for the inaugural
Core Principles
Practitioners Workshop which was approved by CBTC as a back-up in case
the in-person workshop cannot be held in the first
semester of 2022. The Core Principles Practitioners Workshop is
the first stage of the Expert Training Strategy (ETS).
Expert Training Working Group
 The
Experts Training Strategy Working Group (ETWG) is the second of the
four stages proposed in the Expert Training Strategy.
The TCBU concluded a pilot test of the first cycle of training
calls in August with a final session on briefing participants on the
dynamics of the on-site Self-Assessment Technical Assistance Program
(SATAP) visit, and additional training on leading and participating on
a SATAP team. The final presentation materials developed during the
pilot test are being prepared for approval by CBTC and TTAC.
The conclusion of the ETWG expanded
the IADI’s roster of CP Experts from six (6) in 2020 to 17 at end
2021.
Technical Assistance
Self-Assessment Technical Assistance Program (SATAP)
In June 2020 the updates SATAP
guidelines were approved by the CBTC and TTAC to streamline the SATAP
request process and verify all elements are in place for a request
before it is approved. Under the updated process, the TCBU completed
the revision of the SATAP review requested by the Deposit Protection
Corporation of Zimbabwe and recommended the group of experts that will
participate in this project. The request was submitted by the STTAA to
the SG and TTAC Chairperson for approval. Two additional requests are
under review by the TCBU: one raised by the Indonesia Deposit
Insurance Corporation and the other by the National Bank of Rwanda
Deposit Guarantee Fund.
Technical Assistance Framework
The TCBU is committed to
facilitating the provision of technical assistance in the IADI
community and during the first semester of 2021, developed the
Technical Assistance Framework (TAF), an initiative that will allow
IADI Members to request technical assistance through the Secretariat
TCBU.
In November 2021, the TTAC approved
the TAF. This framework, the first of its kind in IADI, will allow the
TCBU to provide technical assistance via three (3) mechanisms: 1)
peer-to-peer assistance; 2) the development of a capacity-building
program; and 3) channel requests through existing technical assistance
programs from other IADI Members or international financial
organisations.
To achieve this, the TCBU will work
on three (3) main elements: the identification of technical assistance
inputs, the provision of a matching process to ensure technical
assistance provision, and the implementation of a communications plan
to aware the IADI community about the characteristics and the
operation of the framework.
Bilateral Technical Assistance
During the second quarter of 2021,
the TCBU addressed seven (7) technical assistance requests. Two (2)
were completed (DPA-Thailand and COSEDE-Ecuador), and the rest
(Albania, Chinese Taipei, Pakistan (two), and The Bahamas) are in the
execution phase.
Communication with the IADI Members
Website section on Capacity Building
 The
TCBU developed an updated version of the training and capacity
building space on the IADI website. This platform will allow IADI
Members to access the information regarding guidance for training
events, guidance for developing a self-assessment, technical
assistance, the Self-Assessment Technical Assistance Program (SATAP),
expert training, and FSI Connect.
This new one-stop-shop site
demonstrates the commitment that the TCBU, the CBTC, and the TTAC have
to facilitate access to IADI training materials. Consult the updated
site
here.
Virtual Training Events
The TCBU facilitated and
coordinated several virtual events with IADI Regional Committees and
partner organisations. The TCBU organised the second IADI Insights
webinar series during the period under review. Seven (7) virtual
events were delivered successfully during the second half of 2021 with
a total of 1,115 participating in these events from IADI Member
Organisations.
For more details about these
events, please refer to the following section on “Events,
seminars, and conferences”.
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Events, seminars and conferences
(July to December 2021)
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DGF Ukraine Online
Conference “Deposit Guarantee Fund: New Role and Strategy”, 8
July 2021, Virtual
 The
Deposit Guarantee Fund of Ukraine (DGF) organised the
conference themed “Deposit Guarantee Fund: New Role and
Strategy” on 8 July 2021. At the conference, DGF’s new
strategy was presented, and the representatives of the
financial sector discussed the future of the Ukrainian deposit
guarantee system.
More than 100
participants including representatives of IADI Member
organisations from 15 countries took part in the event. During
the conference, DGF presented renewed mission, vision and new
 strategic
priories aiming to transform DGF from the organisation
associated with bank liquidation and crisis to the
organisation preventing financial losses and approximating its
policies and practices to the provisions of EU regulations.
New visual identity of DGF was also presented to the audience.
During the
panel discussion Mr Artur Radomski, Director of the Management
Board Office of the Bank Guarantee Fund of Poland (BFG),
shared its experience of the EU Directives transposition and
organisational transformation. The representatives of the
National Bank of Ukraine, KPMG consulting company and bank
associations also participated in the discussion on the role
of the deposit guarantee system in ensuring financial
stability.
The video recording of the Conference can
be found here: https://www.youtube.com/watch?v=lxaYy8uxhec.
19th IADI APRC Annual
Meeting, International Conference and CEO Dialogue, 3-5 August
2021, Virtual
The Malaysia Deposit
Insurance Corporation on behalf of the Asia-Pacific Regional
Committee (APRC) hosted an
International Conference titled “Covid-19 Legacy
and Beyond: Building Operational Resilience and Recalibrating
the Role of Deposit Insurance” from 3-5 August 2021.
 Presentations
on the first day centred around the implications of
digitalisation and fintech for deposit insurers, new
challenges and risks in the financial sector including on
e-money and new opportunities for deposit insurers to leverage
on technology. Discussions on day two focused on emergence of
central bank digital currency, cyber risks, Asia's ageing
population and the changing behaviours of financial consumers.
A panel discussion also focused on the need to recalibrate the
role of deposit insurers in response to these emerging trends.
The virtual event was attended by 253 participants on day one
(1) and 224 on day two (2).
ARC Annual Conference and Annual
General Meeting, 9 and 10 September 2021, Virtual
The Kenya Deposit Insurance
Corporation (KDIC) on behalf of the Africa Regional Committee
(ARC) hosted the ARC Annual Conference
and Annual General Meeting on “Contingency planning and
crisis management for deposit insurers in the wake of
technological advancement and COVID-19 disruption” on 9 and 10
September 2021.
 The
webinar began with the overview of IADI Core Principle 6
(Deposit Insurer’s Role in Contingency Planning and Crisis
Management) and Core Principle 14 (Failure Resolution). This
was followed by presentations on the responses of deposit
insurers to the Covid-19 pandemic and the impact on their
contingency planning and crisis management frameworks.
Resolution tools available to deposit insurers and
jurisdiction experiences in the application of these tools, in
particular tools such as purchase and assumption and others
that are used when a crisis extend beyond the resolution of a
single bank, were also discussed. The second day discussions
centred on the role of fintech in transforming the banking
sector, the story of M-PESA, e-money and cybersecurity
challenges in the financial sector. The webinar was attended
by 239 participants.
IADI ERC and EFDI Joint
Webinar – Sustainability: green-washing or emerging issues for
deposit insurers?, 8 October 2021, Virtual
The Fondo Interbancario di
Tutela dei Depositi (FITD), Italy on behalf of the Europe
Regional Committee (ERC) hosted a joint virtual event on
“Sustainability: Green-washing or emerging Issues for deposit
insurers” on 8 October 2021.
 The
first session focused on environmental, social and governance
dimensions, recent research and policy trends, and climate
risks and deposit insurance. Discussions on the second segment
of this session centred on the European Forum of Deposit
Insurers (EFDI) Sustainability Charter, including feedback
from EFDI Member having adhered to the Charter. Session two
focused on the European Union strategy for financing the
transition to a sustainable economy, including environmental,
social and governance (ESG) trends and financial stability,
and the survey on ESG exposure of European Banks. The event
was attended by 121 participants.
IADI – FSI Joint Virtual
Conference: The evolving safety net – Building effective
financial safety nets to address emerging risks, 15 and 16
September 2021, Virtual
The FSI and IADI organised
a joint virtual meeting on “The Evolving Safety Net: building
effective financial safety nets to address emerging risks” on
15-16 September 2021.
The first session focused
on the impact of technological evolution and
digital currencies on the future of deposits and the
operations of deposit insurers. The second session focused on
the possible impact of physical and transition risks related
to climate change on financial stability, bank resolution and
deposit insurance policies and procedures. The virtual
meeting was attended by 318 participants.
SEACEN – BOJ – FSI – IADI Virtual Seminar on Problem Bank
Intervention and Resolution, 28-30 September 2021, Virtual
The FSI, IADI, SEACEN and
Bank of Japan (BOJ) held a joint virtual seminar on “Problem
bank intervention and resolution” from 28-30 September
2021.The virtual seminar focused on early intervention
measures for problem banks, including the terminal stages of
supervision of institutions with a high likelihood of failure,
bank recovery and resolution planning (RRP) and resolvability.
Other areas included bank resolution tools as implemented
globally and in region of SEACEN stakeholders, including sale
of the business, bridge banks, asset separation and bail in.
In addition, the complexities of cross-border resolution,
including single point and multiple points of entry strategies
and arrangements for cross-border coordination and crisis
communications were also discussed. The seminar concluded by
focusing on resolution safeguards and constraints: least cost
test and no creditor worst off safeguard, and resolution tools
approaches for small banks and small jurisdictions. The
virtual seminar was attended by 116 participants with 47 from
invited IADI Members.
The TCBU organised Session
8 on resolution safeguards and constraints: least cost test
and the no creditor worse off principle. The session was
hosted by David Walker, with Riccardo De Lisa (Fondo
Interbancario di Tutela dei Depositi), Taewon Song (Korea
Deposit Insurance Corporation) and Melvin Lim (Malaysia
Deposit Insurance Corporation) participating as speakers. The
presenters provided experiences on applying the least cost and
no creditor worse off principles in the respective
jurisdictions. In addition, the TCBU sourced speakers for
other sessions led by the FSI.
FSB ReSG – IADI Joint
virtual workshop on Resolution Issue for Financial
Cooperatives, 26 October 2021, Virtual
The FSB Resolution Steering
Group (ReSG) and the IADI held jointly the workshop on
resolution issues for financial cooperatives on 26 October
2021. Co-chaired by Mr Julian Reid (Autorité des marchés
financiers (Québec, Canada), Chairperson of the IADI
Resolution Issues for Financial Cooperatives Technical
Committee) and Mr Jacques Botes (South African Reserve Bank),
FSB members authorities and IADI Members participated in the
workshop composed of two sessions: i) Crisis management within
financial cooperatives and ii) Resolution of financial
cooperatives.
 At
the first session on crisis management, Mr Reid presented an
overview of IADI’s work on the topic, including the feedback
received from the public consultation of IADI’s draft guidance
paper. Participants discussed crisis management actions aimed
at maintaining the cooperative structure. At the beginning of
the second session on resolution, Mr Botes presented an
overview of FSB ongoing work to identify issues in relation to
resolution of financial cooperatives. Following his
presentation, four speakers from FSB/IADI member institutions
were invited to deliver presentation on their experience. The
workshop participants actively discussed issues on approaches
to resolve systemically significant or critical financial
cooperatives where crisis management efforts within the
cooperative have failed.
IDIC
International webinar on The Rise of Digital Banking and the
Future of Deposit Insurance System, 10 November 2021, Virtual
 Indonesia
Deposit Insurance Corporation (IDIC) had once again held an
annual international webinar on 10 November 2021. This year,
IDIC brought on the theme “The Rise of Digital Banking and The
Future of Deposit Insurance System” which centers the
discussions from different jurisdictional perspectives to
address the global and dynamic changes of the economics as a
result of the rise in digital banking, especially during the
pandemic. Over 500 global participants from
147 organizations
have streamed the webinar through both WebEx and YouTube
platforms.
This webinar
features a line-up of prominent speakers from Bank for
International Settlements (BIS), Mr Jon Frost; Indonesian
Financial Supervisory Authority (FSA/OJK), Mr Imansyah; PT
Bank Rakyat Indonesia (Persero) Tbk., Mr Indra Utoyo; and FGD
Spain, Mr Carlos Colao.
In a nutshell,
the speakers touched upon the big shift in the global fintech
landscape, including open banking era that could become the
banking model of the future. This leads to the urgency of
policy coordination among financial regulators and other
regulators worldwide, along with the need to heighten
financial and digital literacy as well as fostering public
awareness on the emerging digital technology and
transformation of the digital banking industry.
IADI APRC
Technical Assistance Workshop on Resolution Issues in
New-normal Times: Cooperation and Coordination in Handling
Resolution of Troubled Banks during Pandemic/Global Warming, 8
and 9 December 2021, Virtual
The Central Deposit Insurance
Corporation (CDIC), Chinese Taipei on behalf of the APRC held
a Technical Assistance Virtual Workshop on “Resolution Issues
in New-normal Times: Cooperation and
Coordination in Handling Resolution of Troubled Banks during
Pandemic/Global Warming” on 8 and 9 December 2021.
 The
webinar began with a presentation on the key features of IADI
Core Principle 6 (Deposit Insurer’s role in contingency
planning and crisis management) and IADI Core Principle 14
(Failure resolution). The first day presentations focused on
the Malaysia Deposit Insurance Corporation’s experience in
implementing contingency planning and crisis management in
various scenarios, overview of contingency planning for the
IADI Regional Committee of North America and Korea Deposit
Insurance Corporation’s experience in contingency planning,
including for a pandemic event.
Discussions on day 2 centred on
effective resolution frameworks for dealing with global
systemically important banks (G-SIBs) and domestic
systemically important banks (D-SIBs) and the impact of
COVID-19 on the risks for these banks and cooperation and
coordination with other safety net participants for bank
resolution in business as usual, during the COVID-19 pandemic
and facing climate change. The other presentations in this
session were on the implications for deposit insurers of the
COVID-19 pandemic’s impact on bank resolution and the European
resolution framework and improvement of cross-border
cooperation on bank resolution in a pandemic environment. The
event was attended by 195 participants.
IADI Insights
In response to the TTAC
workplan item included in 2021 to offer a wider range of
training events organized and hosted by the IADI Secretariat
and not relying on the membership, the TCBU developed the IADI
Insights webinar series.
 The
TCBU organised the second IADI Insights webinar on “New
Frontiers on Machine Learning: Coverage”. Jacob Muñoz, from
the Fondo de Garantías de Instituciones Financieras (Fogafín),
Colombia delivered a presentation focusing on how predictive
analytics technology can enable the automation of
decision-making around the ideal coverage level for deposit
insurance. The webinar was attended by 81 participants.
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Forthcoming
events
New
books and papers
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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 88 deposit insurers, 9 Associates and 17
Partners (as of January 2022). The IADI is a non-profit organisation constituted under
Swiss Law and is domiciled at the Bank for International Settlements
in Basel, Switzerland.
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