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
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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
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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 failure of a member institution. The Islamic Deposit Insurance Fund is being managed in accordance with appropriate guidelines in line with Shariah principles.
For this reason, PIDM will only invest its funds in safe and liquid instruments such as Ringgit denominated securities issued or guaranteed by the Government or Bank Negara Malaysia (BNM) or of high investment grade as rated by a reputable rating agency, deposits with BNM or any financial institutions and any other investments as approved by the Minister of Finance, upon the recommendation of the Board of Directors of PIDM.
