10 TH Deposit Insurance Corporation of Japan Round Table

Transcription

1 10 TH Deposit Insurance Corporation of Japan Round Table Kyoto, Japan: 10th March 2018 David Walker Secretary General, IADI

2 Overview 1) IADI and its key strategic priorities 2) Update and progress report 3) Emerging issues 4) Upcoming events

3 Mission History To contribute to the enhancement of deposit insurance system effectiveness by promoting guidance and international cooperation Established in Basel in 2002 with 25 Founding Members Membership in Members, 8 Associates and 14 Partners Key Advancements Research & Guidance Training & Capacity Building IADI Core Principles for Effective Deposit Insurance Systems (CPs) issued in 2009 and revised in 2014 CPs have been incorporated into IMF/WB FSAPs and FSB Peer Reviews New CP Handbook for Assessors published in 2016 Guidance under development in areas such as: funding; financial inclusion, crisis management and asset recoveries IADI Biennial Research Conference in Basel June 2017 IADI Annual survey and database Global/Regional conferences, seminars and technical workshops Joint FSI-IADI conferences and policy implementation meetings Website and on-line tutorials

4 110 Total Partner 14 Associate Member Member Associate Observer Partner Total

5 IADI s KEY STRATEGIC PRIORITIES 1) Promoting deposit insurance compliance with the IADI Core Principles. 2) Advancing deposit insurance research and policy development. 3) Providing members with technical support to modernize and upgrade their systems. 4) Implement IADI governance reforms.

6 Key Characteristics 16 Core Principles Developed in 2009 and revised in Incorporate best practices of deposit insurers and views of organizations such as the BIS, IMF, World Bank and European Forum of Deposit Insurers. Reflect lessons learned in past financial crises. Utilized in deposit insurer self-assessments, IMF-WB FSAPs, FSB peer reviews etc. 1. Public policy objectives 2. Mandate and powers 3. Governance 4. Relationships 5. Cross-border issues 6. Crisis management 7. Membership 8. Coverage 9. Sources and uses of funds 10. Public awareness 11. Legal protection 12. Dealing with parties at fault 13. Early detection and intervention 14. Failure resolution 15. Reimbursing depositors 16. Recoveries

7 More Prescriptive Mandatory ex-ante funding 7-working day payout target Sufficient coverage 16 Core Principles General Strengthening Governance Frameworks Enhancing operational independence Improving accountability Methodology: 96 Essential Criteria New Crisis Management Principle Emphasise contingency planning and coordinating framework More Safeguards On use of DI funding in resolution Enhanced info. sharing/co-ordination Handbook: How To Guidebook Specific

8 Compliant Materially Non compliant N/A 1. Public Policy Objectives (PPOs) 2. Mitigating Moral Hazard 3. Mandate Largely Compliant Non compliant 10. Transitioning from Blanket Guarantee 11. Funding 12. Public Awareness (Number of jurisdictions with the assessment result) *Based on 2014/09 CPs 4. Powers 5. Governance 6. Relationship with Other Safety Net Participants 7. Cross-border Issues 8. Compulsory Membership 13. Legal Protection 14. Dealing with Parties at Fault 15. Early Detection, Timely Intervention & Resolution 16. Effective Resolution Processes 17. Reimbursing Depositors 9. Coverage 18. Recoveries

9 I. Progress on promoting deposit insurance compliance with the IADI Core Principles 1) Promote Self-Assessment Technical Assistance Program (SATAP) and knowledge of CPs through Workshops:» Recent SATAPs: Philippines (2013), Korea (2015), Brazil (2017) and Vietnam (2018).» Establishment of an Expert Training Workshop program to train individuals (March 2018) -- with solid background in the IADI CP development and extensive experience in selfassessments as experts in assessing the CPs in IMF/World Bank FSAPs, FSB reviews and IADI SATAPs.» Development of an IADI Core Principles Introductory Training program (Late 2018, TBD). 2-day Workshop under development to provide an overview of the CPs and their evolution and a basic understanding on how to apply them in selfassessments.

10 2) Enhance collaboration with BIS, FSB, IMF and World Bank in promoting the CPs and financial stability.» Upcoming FSAPs and Technical Assistance missions with the IMF/ WB only 8 FSAPs using CPs have been conducted to date. More are needed.» FSB Resolution Steering Group participation and support for implementation monitoring on deposit insurance.» Joint FSI-IADI conferences/policy implementation meetings and collaboration on surveys. 4) Develop an improved compliance assessment program utilizing surveys of members to benchmark compliance and information from FSAPs, SATAPs and other sources (set for Phase II of the Strategic Plan). 5) Ensure IADI research and policy development support enhancing compliance and supporting technical assistance and training.

11 II. Progress advancing deposit insurance research and policy development Core Principles and Research Council Committee and Secretariat Research Unit (RU) are developing an enhanced capacity to: 1) Ensure IADI is the key source of deposit insurance data by improving its database and making it more available for researchers. 2) Develop policy positions to support IADI s participation and dialogue with international financial institutions on deposit insurance issues. IADI Research Conference in June 2017 looked at optimal coverage, coverage, financial innovation and bank liability structures and involved 188 participants IADI Survey released and new survey under development. Data Collection and Reporting Management Systems (DCARMS) Request for Quotation released in February Development of policy briefs (e.g. bail-in, mobile money and FINTECH).

12 3) Conduct research on emerging issues in deposit insurance, for example: Role of deposit insurance in contingency planning and crisis management (sub-committee workshop held in Dec 2017 and second paper draft under development). Target Funding and differential premium systems. Resolution issues for Financial Cooperatives. Core Principles for Islamic Deposit Insurance Systems joint work with the Islamic Financial Standards Board (IFSB) underway. Deposit Insurance System Risk Management and Internal Control Systems. Financial inclusion and innovation new survey and paper in 2018.

13 III. Progress on enhancing technical assistance and training to promote the value of IADI membership IADI Training and Technical Assistance Council Committee work in conjunction with the Secretariat. Key initiatives: 1) Customise IADI technical assistance using technical assistance workshops (TAWs) to address gaps in the design and implementation of deposit insurance reforms. In 2017 completed workshops in Africa, Asia, Europe, Eurasia, Latin America, Caribbean and the Middle East. IADI Expert Training program initiated following March ERC meeting. In process of developing an enhanced registry of deposit insurance capacity building expertise among Members. 2) Conduct TAWs and seminars for new deposit insurers and jurisdictions considering the establishment of deposit insurance. Outreach sessions to be included in events. 3) New IADI knowledge management micro-website system (Repository Project) -- led by Kosovo -- under development.

14 4) Developing learning opportunities through innovative events and programs. FSI Connect on-line tutorials. Joint FSI IADI meetings and conferences related to bank resolution and deposit insurance. 5) Supporting the implementation of IADI s communication plan. Promotion of awareness of IADI and the CPs through participation in meetings of the FSB, BIS, World Bank, Regional Conferences and other meetings. Production of December Newsletter containing new section on key IADI Member benefits. Outreach activities conducted with the South African Reserve Bank and the World Bank in Cape Town and Zimbabwe.

15 TAW Participation ARC/MENA ERC LARC/RNCA APRC CRC EURASIA Number of Participants Jurisdictions TOTALS

16 IV. Governance and Administration - updates Expressions of interest conducted for vacant Council Committee, Technical Committees and working group positions. In discussions with Bank for International Settlements for additional contributions to IADI in Replacement secondees (Indonesia and Korea) and Research Analyst and Administrator expected to join in Spring. IADI Code of Ethics and Conduct approved by EXCO: Valid for the Members, Associates, representatives, staff and committee participants. Core Values and Principles include Diversity, Equity, Integrity, Excellence, & Inclusiveness. The Code balances the Needs of the Association with Sustainable membership, seeking the Widest possible Consensus, and Transparency. Members, EXCO, Committee members, and the Secretariat must act in the best interest of IADI; avoid any conflict of interest or appearance thereof, and respect confidentiality. Election of EXCO Vice-Chair for May 2018: Draft election guidelines approved by EXCO in 54 th EXCO in January. Process to be initiated in April with an EOI distributed and culminate in an election at the 55 th EXCO in Moscow.

17 V. Strategic implementation - Phase I 1) Phase I underway over the period: a) Research and policy capacity enhanced by adding Senior Policy and Research Advisor and a Research Analyst and Administrator. b) Targeted Regional Workshops for Member training and technical assistance. c) Training experts program initiated d) Operationalizing the new organizational structure» Appointment of Council Committee (CC) Chairs and members completed» Terms of Reference for CCs finalized» Development of CC work plans completed and implementation underway» Establishment of Technical Committees to carry forward the work of the CCs being finalized

18 Strategic Review/Implementation Phase II a) Establishment of a IADI Working Group on New Funding Options (WGNFO) chaired by IADI President. Comprised of EXCO Chair/Vice Chair, 4 Council Committee Chairs, EXCO Ex-Chair s representative and former fee structure WG Chair, Regional Committee Chairs and SG (in Phase II). b) Analysis of the initial activities during Phase I being initiated. What is working, what is not and why? Evaluation of past expenditure and future resources and related expenditures. c) Study of future fee structure options. Review necessary amount of fee revenue and adequate fee structure. Examine issues such as the balance between one member one vote and the differentiation of fees, classification methodology, fee ranges and in-kind contribution treatment. d) Recommendations for modifications needed to continue implementing the Strategic Goals.

19 Upcoming IADI 2018 events March: March: March: April: April: 7-9 May: 8-11 May: 28 May 1 June: Oct: 5-9 Nov: Deposit Insurance Corporation of Japan Round Table (Kyoto, Japan) Europe Regional Committee Annual Meeting and International Conference (Naples, Italy) Expert Training for Assessing Compliance with Core Principles (Naples, Italy) 16th Annual Asia Pacific Regional Committee Meeting and Deposit Insurance of Vietnam Conference (Hanoi, Vietnam) 3 rd America s Deposit Insurance Forum and Regional Committee Meeting LARC (CRC/RCNA) and IPAB (Mexico) 11th EARC Annual Meeting and the Int. Seminar and Conference, Regional Committee, IADI TTAC and SDIF (Istanbul, Turkey) Korean Deposit Insurance Corporation (KDIC) Basic Global Training Program (Seoul, Korea) 55th EXCO Meeting (Moscow, Russia) 17th IADI Annual General Meeting and Conference (Basel) KDIC Intensive Global Training Program (Seoul, Korea)

20 Thank You David Walker Secretary General, IADI