Core Principles

Core Principles for Effective Deposit Insurance Systems

On 18 June 2009, the Basel Committee on Banking Supervision (BCBS) and the International Association of Deposit Insurers (IADI) published Core Principles for Effective Deposit Insurance Systems, setting an important benchmark for jurisdictions to use in establishing or reforming deposit insurance systems. The Core Principles were designed to be adaptable to a broad range of jurisdiction circumstances to take into account the broader characteristics of safety net arrangements and address a comprehensive range of issues including coverage, funding, powers, membership, transitioning from blanket to limited coverage and prompt reimbursement.

Although the original Core Principles have served their purpose well, lessons learnt from the recent financial global crisis and developments in the regulatory landscape have shown that revision would maintain their use as a flexible, internationally applicable standard. As a result, IADI established a Steering Committee in February 2013 to undertake the revision. The Committee’s recommendations were submitted to a Joint Working Group (JWG) comprised of representatives from the Basel Committee on Banking Supervision (BCBS), European Commission (EC), European Forum of Deposit Insurers (EFDI), FSB, IMF, World Bank and IADI. The revision process culminated on 21 October 2014, when IADI’s Executive Council formally approved the revised set of Core Principles for submission to the Financial Stability Board (FSB). IADI Core Principles have been included into the FSB’s Key Standards for Sound Financial Systems. These 15 standards have been designated by the FSB as key for sound financial systems and deserving of priority implementation depending on country circumstances. The standards are broadly accepted as representing minimum requirements for good practice that countries are encouraged to meet or exceed.

The revised Core Principles strengthen the deposit insurance standards in several areas including reimbursement speed, coverage, funding and governance, adding more guidance on the deposit insurer’s role in crisis preparedness and management. The updated document also reflects the greater role played by many deposit insurers in resolution regimes while continuing to accommodate a diverse range of deposit insurance systems.  

Translations of the Core Principles for Effective Deposit Insurance Systems

          - IADI Press Release

          - Arabic version

          - Spanish version

          - Chinese version 

          The other language versions will be available soon.

  • Core Principles for Effective Deposit Insurance Systems - A methodology for compliance assessment (December 2010)

Guidance for Assessing Compliance with the IADI Core Principles

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