PROTECTING YOUR DEPOSITS PUBLIC AWARENESS AND DEPOSIT INSURANCE: EAST ASIA REVIEW David Walker Deposit Deposit
Presentation Outline Importance of Public Awareness East Asia review highlights: Hong Kong Korea Singapore Vietnam Indonesia Malaysia Taiwan Japan Philippines Thailand Future directions Deposit
Importance of public awareness Importance of Public Awareness ( PA ) A public that is well informed about the benefits and limitations of deposit insurance helps to build and maintain confidence PA is important before, during and after a failure Special importance for East Asia Rapidly growing economies and demand for financial services Deposit insurance a new concept in many countries (transitioning) Asia a source of deposit insurance innovation and good practices High level of regional cooperation Deposit
Hong Kong - DPB Objectives and approach: contribute to stability begin with focus on promoting the existence of deposit insurance then emphasize readiness in subsequent years. Target audiences: people in all walks of life, age groups targeted using different media. Content/message: reach people in all walks of life with messages (e.g. save with confidence ). Communication tools: signage in banks, negative stamping, website (including on-line adverts and podcasts, advertising (radio and television, roving exhibition, advertise on buses, MRT and comics. Frequency, timing, budgets and evaluation: programs reviewed regularly for effectiveness, external surveys utilized for benchmarking. Deposit
Indonesia - IDIC Objectives: increase public awareness and understanding of deposit insurance and transitioning. General approach: initially target front liners bank staff and their role in communicating with depositors, extend to seminars and workshops. Boost awareness of DI and reduce risk of capital flight. Social responsibility is important. Target audiences: bank staff/ general public. Content/message: Building awareness of deposit insurance for conventional & Syariah banks - how transitioning works. Communication tools: brochures, website, publications, news papers and magazines, radio and TV to come, seminars and outreach programs (e.g. East Java outreach) in cooperation with banks and supervisors. Budgets and evaluation: Incorporated into operating budgets and regularly reviewed. Deposit
Japan - DICJ Objectives: Public awareness a priority particularly during transitioning from blanket guarantees; use of easy to understand messages. General approach: comprehensive marked by close cooperation with other safety net participants (e.g. FSA and Bank of Japan). Target audiences: general public segmented into youth, elderly Content/message: easy to understand language Communication tools: brochures, sending staff to training sessions organized by member banks to explain deposit insurance. Articles in financial journals, brochures, books, website, comics, TV/ newspaper interviews educational materials, telephone lines Frequency and timing: ongoing programs and special programs to deal with specific issues (i.e. transitioning) Budgets and evaluation: evaluated with overall operating budgets. Deposit
Korea - KDIC Objectives: promote awareness and understanding of deposit insurance General approach: convey simple messages to the public Target audiences: e.g. youths, elderly Content/message: consumer protection/education let us help you Communication tools: brochures, advertising, new website, joint seminars with other agencies, toll-free lines etc Frequency and timing: ongoing and special programs Budgets/evaluation: incorporated into annual budget and evaluated regularly. Deposit
Malaysia - MDIC Your coverage is very wide Objectives: Public awareness a key objective - educate public about the presence of deposit insurance and its benefits and limitations. Build respect and trust in MDIC. General approach: comprehensive integrated PA program/communication plan and crisis communication plan. PA on deposit insurance more meaningful if integrated with financial knowledge. Target audiences: depositing public and front-line banking staff Content/message: e.g. Your coverage is very wide Communication tools: signs, brochures, website, publications, TV and radio advertising, seminars and workshop, media events in shopping centers (Malaysia Financial Exhibition 2007 one stop information experience), coop with central bank and other authorities, DI calculators. Frequency/timing: multi-year 3 phase timeframe plus ongoing and special programs/campaigns Budgets and evaluation: surveys conducted and progress bench marked against objectives Deposit
Philippines - PDIC Objectives: communicate information on deposit insurance and contribute to financial stability. Guidance on filing claims, financial literacy and savings promotion. General approach: use simple, understandable language policy objectives imbedded into the message. Target audiences: small unsophisticated depositors. Content/ message: plain language to convey awareness of coverage limits, PDIC Depositor Assistance Bureau. Communication tools: tri-media campaign, internet website, radio and TV, brochures, press releases, publications external and internal, phone lines, Depositor Protection & Awareness week, Financial Literacy and Savings Advocacy. Frequency and timing: high frequency exposure, ongoing programs, annual depositor protection week. Budgets and evaluation: program review every 3-5 years. Key challenge - money and resources. Deposit
Singapore - SDIC Objectives: inform and educate the public on the benefits and limitations of the deposit insurance system General approach: deposit insurance is new in Singapore and awareness and understanding are crucial for the public and functioning of the system Target audiences: general depositing public Content/message: Insuring your savings, Always ready to cover you.. Communication tools: website, brochures, signage, deposit insurance calculator, numerous publications Budgets and evaluation: incorporated under annual budget Deposit
Taiwan - CDIC Objectives and approach: promotion of awareness and understanding of deposit insurance; advocacy of financial literacy and safe banking practices; and close cooperation with supervisory authorities on financial literacy. Target audiences: small depositors of all age groups -- increasingly large depositors in response to movement towards a compulsory regime in 1999. Content/message and tools: membership signs, brochures, TV, radio, newspapers, magazines, international conferences, bank seminars and open seminars for the public, toll free lines, souvenirs disseminated to the public, wealth management youth camp. Frequency and timing: annual plans developed; periodic PA campaigns. Budgets and evaluation: annual budget and plans with regular performance assessments and evaluations conducted after all major PA events. Use of independent surveys. Deposit
Thailand - DIA Objectives: Deposit insurance legislation just passed and the Deposit Insurance Agency is under construction. Bank of Thailand and Ministry of Finance have begun PA activities to prepare for transitioning. General approach: preparing the public for transitioning from blanket guarantee to limited coverage over a five-year period. Target audience: general public, front desk bank staff, social leaders in each region, media (i.e. newspapers) Content/message: emphasize safety and stability in plain language Communication tools: considering signage, mass media, working with member banks Deposit
Vietnam - DIV Objectives: safeguard the national financial system and protect the rights of depositors as well as the financial revenues of the DIV. General approach: DIV in operation nine years and its capabilities and position keep expanding as has its PA programs. Target audiences: new depositors Content/message: bring awareness of deposit insurance into people s lives. Communication tools: mass media, signage, brochures, seminars, joint programs with agencies, TV & radio on a regular basis. Challenges: rapid DIV growth but need to centralize and coordinate operations. DIV to develop depositor support consultation centers. Budgets/evaluation: PA budget incorporated as part of annual operating budget. Deposit
Summary - Key features and trends East Asia quick to embrace best practices in Public Awareness. Many PA systems being constructed at the same time Common challenges in areas such as transitioning and introducing depositors to the concept of deposit insurance. IADI and ARC very active supporting new systems being developed Proliferation of deposit insurance MOUs in Asia - more than any other region in the world. Deposit