Contents. Introducing Global-KDIC KSP. Ⅱ Sharing KDIC s Experience. Lessons and Future Work

Transcription

1

2 Contents Ⅰ Introducing Global-KDIC KSP Ⅱ Sharing KDIC s Experience Ⅲ Lessons and Future Work 2

3 Ⅰ. Introducing Global-KDIC KSP 3

4 Deposit Insurance System (DIS)? Deposit Insurance System (DIS) A system established to protect depositors against the loss of their insured deposits in the event that a bank is unable to meet its obligations to the depositors. Why is DIS important? Provide protection for small depositors Enhance public confidence and systemic stability by preventing run on banks Increase savings and encourage economic growth Enable small and new banks to compete with large and/or stateowned banks Define the boundaries to the government s exposure to loss Require banks to contribute to the resolution of failed banks 4

5 Deposit Insurance Systems around the World North America 2 Caribbean 6 Latin America 15 Europe 48 Africa 11 Eurasia Middle-East & North Africa 12 7 Asia-Pacific 20 Source: IADI database 5

6 Overview of Knowledge Sharing Program (KSP) Knowledge Sharing Program (KSP), an Official Development Assistance (ODA) program offered by the Korean government to share development experience which started in 2004 Government-driven KSP Since 2004 Representative national brand project Funded and supervised by the MOSF KDIC : policy consultation in the area of DIS Global-KDIC KSP KDIC s own KSP since 2010 Capacity building program, staff exchange, staff secondment, study visit, and workshop Integrated DIS, IT system, risk surveillance, resolution, etc. 6

7 Background of the Global-KDIC KSP Increasing international demands for sharing the KDIC s experience after the global financial crisis Expanding the mandates of deposit insurers from a paybox to a riskminimizer Keeping abreast with the government s KSP initiative [Mandates of Deposit Insurers: FSB Members] Paybox Paybox Plus Loss minimizer Risk minimizer Australia, Germany, Hong Kong, India, Netherlands, Singapore, Switzerland Argentina, Brazil, U.K. Canada, France, Indonesia, Italy, Japan, Mexico, Russia, Spain, Turkey Korea, U.S. Source : FSB(2012) 7

8 Why a demand for sharing KDIC s experience? Establishment Restructuring Stabilization of the Financial System Asian Financial Crisis Global Financial Crisis ~ 2004 ~ 2009 ~ 2014 Establishment of the KDIC Enactment of the Depositor Protection Act (DPA) Restructuring of Financial Institutions with KRW 168 trillion (KDIC : 111 tril.) of Public Funds Creation of the New Deposit Insurance Fund Implementation of the Target Fund System Implementation of the Risk-Based Premium System Launch of the KDIC as an integrated deposit insurer 8

9 Key Activities of KSP Policy Consultation Research Policy practitioners workshops Senior-level policy dialogues and dissemination seminars Capacity Building Program Customized courses on particular DI-related topics On-site training in partner countries and thematic courses in Korea Tailored Implementation Program Dispatch of experts to partner countries Short-term study visits and workshops 9

10 Ⅱ. Sharing KDIC s Experience 10

11 Global-KDIC KSP s Partner Countries In a total of 48 countries participated in the Global-KDIC KSP since One Asia with KDIC, a global training program, was launched in Year Partner Tanzania Lao PDR KDIC-KSP Mongolia Vietnam Indonesia Tanzania Malaysia Indonesia Nepal Butane Mongolia China Kenya Mongolia China Vietnam Nigeria Chinese Taipei Malaysia Tanzania Nepal Mongolia Vietnam Indonesia Ukraine Thailand Mongolia Malaysia Indonesia Chinese Taipei Ukraine Thailand Tanzania Lao PDR Indonesia Thailand Vietnam Mongolia Malaysia Lao PDR Cambodia Thailand Chinese Taipei Lao PDR Cambodia Indonesia Indonesia Philippines Govt -KSP Mongolia Tanzania Mongolia Tanzania Tanzania Tanzania Philippines 11

12 Some of Past Activities Partner Year Activities Mongolia 2010~ Consultation to adopt the deposit insurance system and to implement an IT system for deposit reimbursement* Vietnam 2010~ Training and research on IT system establishment, a working-level workshop, etc. Tanzania 2011~ Policy consultation to support the establishment of an independent deposit insurance organization and the IT system Philippines 2014~ Consulting for IT system Improvement Lao PDR 2014~ Malaysia Indonesia Nigeria 2011~ A workshop for officials to share experience in deposit insurance system operation, Consulting for IT system Improvement* An international workshop on experience-sharing in Integrated deposit insurance systems * Selected as one of best supporting areas for Korean e-government projects in

13 Case Studies - Mongolia Description Objectives : Adoption of a deposit insurance system and implementation of an IT system for deposit reimbursement Since 2010, the KDIC has participated in the KSP for Mongolia to provide a set of policy suggestions for adopting DIS in collaboration with the Asian Development Bank. In 2013, the DI Act of Mongolia was enacted and the Deposit Insurance Corporation of Mongolia (DICM) was established as the result of policy suggestions of the KSP with the ADB. In 2015, the KDIC provided consultation for the development of DI payment procedures and IT system implementation. 13

14 Ⅲ. Lessons and Future Work 14

15 Lessons and Future Work DIS necessary for strengthening financial stability and economic growth Protecting depositors and maintaining public confidence in the financial system Encouraging economic growth by increasing savings Active leadership at the senior level and effective communication Active leadership role at the senior level necessary for timely decision-making Building effective communication networks at among working-level staff (or practitioners) for identifying and handling needs for KSP Close cooperation and coordination with international organizations IADI, ESCAP, World Bank, ADB and other international organizations can together develop a framework to help countries exchange know-how and experience. Long-term commitment for mutual benefits Continued sharing of knowledge and personnel to enhance mutual understanding and exchanges between countries KSP needs to be conducted from a long-term perspective. 15

16 16

17 Dr. Seungkon Oh Senior Research Fellow Korea Deposit Insurance Corporation Tel