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Funding |
Management of Deposit Insurance Fund
Since the deposit insurance system provides coverage for both conventional and Islamic deposits, PIDM maintains and administers two separate funds:
Conventional Deposit Insurance Fund
all premiums and/or other monies received by PIDM and assets received or vested in PIDM, as well as all expenditures incurred, in respect of conventional deposits; and
Islamic Deposit Insurance Fund
all premiums and/or other monies received by PIDM and assets received or vested in PIDM, as well as all expenditures incurred, in respect of Islamic deposits.
PIDM will manage and invest the Funds prudently to generate a reasonable return for PIDM while ensuring that the Funds are readily available to cover operating costs and make payments to depositors in the event of a bank failure. The Islamic Deposit Insurance Fund is being managed in accordance with appropriate guidelines in line with Shariah principles.
For this reason, PIDM currently only invests its funds in safe and liquid instruments such as Ringgit denominated securities issued or guaranteed by the Government or Bank Negara Malaysia (BNM).