PIDM to set up financial resolution system

KUALA LUMPUR: Perbadanan Insurans Deposit Malaysia (PIDM), which has outlined its direction for the next three years under its Corporate Plan 2017-2019, will focus on the establishment of a comprehensive and effective resolution regime for a robust financial system in Malaysia.

PIDM executive general manager Rafiz Azuan Abdullah said it will be establishing comprehensive frameworks to guide and facilitate the development of the resolution plans and assessment of the resolvability of member institutions.
"This regime will allow member institutions to be resolved in an orderly manner, without systemic disruption, in a manner that minimises losses to the financial system as a whole,” he said in a statement.
As an integral part of the Malaysian financial safety net system, PIDM is mandated to protect the interests of depositors and takaful and insurance policy owners against the failure of any PIDM member institution.
For 2017-2019, PIDM will be directing its efforts towards ensuring its continued sustainability whilst adapting to changes in its operating environment.
It will also continue to engage with its stakeholders as public confidence is key to the corporation’s success in the execution of its mandate and to be recognised as a credible financial consumer protection and resolution authority.
The financial plan for 2017 will support the execution of PIDM’s planned initiatives. PIDM has budgeted revenue of RM585 million from premiums and levies received from its member institutions, and operating expenditures of RM120 million, with a projected net surplus of RM465 million for 2017.
By the end of 2017, the surplus in the Deposit Insurance Funds (DIFs) will amount to RM2.01 billion and the Takaful and Insurance Benefits Protection Funds (TIPFs) will total RM1.54 billion. The DIFs and TIPFs are accumulated reserves to cover losses that may arise from providing protection to depositors and policy owners respectively