With the introduction of a deposit insurance system in Malaysia, depositors receive protection for their deposits under the law. Depositors will know when, how much and how their deposits are insured in the event that a member institution fails or is unable to make payment to depositors.

Deposit insurance is recognised internationally as an important component of a country’s financial safety net and has been implemented in over 95 countries around the world, with the earliest system dating back to 1930s.