PIDM Empowers Resilience through Resolution Planning

PIDM Empowers Resilience through Resolution Planning

At its recently concluded inaugural two-day National Resolution Symposium (NRS), PIDM brought together 300 regulatory experts, practitioners and industry players from various jurisdictions to share insights and exchange views on managing resolution and resolution planning for financial institution.

Rafiz Azuan Abdullah, PIDM’s Chief Executive Officer, in his welcoming remarks likened the recent banking turmoil in the US and Switzerland to “black swan” events and how these seemingly business unusual events have become increasingly more frequent. He reminded that while Malaysia has not had any financial institution failure, it is not immune to future crises and adopting just-in-case measures to weather these uncertainties is the way forward.

We were honoured to also have Datuk Jessica Chew Cheng Lian, the Deputy Governor of Bank Negara Malaysia to deliver the opening address, and Eva Hüpkes, the Secretary General of the International Association of Deposit Insurers (IADI) as the keynote speaker.

Guest speakers from prominent institutions such as the Federal Deposit Insurance Corporation (FDIC), IADI, Single Resolution Board (SRB), Hong Kong Monetary Authority (HKMA), representatives from our Member Institutions (MI), accounting, actuarial and law firms and more, added depth to the discussions and conversations on resolution and resolution planning.

The symposium, in general, covered the recent failures of Silicon Valley Bank and Credit Suisse, examining their impact and highlighting the importance of crisis preparedness and effective communication strategies. Speakers representing the banking industry also spoke at length about their respective journeys in implementing recovery and resolution planning (RRP) and their benefits to prevent severe disruption and retaining essential institutional functions, not just in resolution but also in day-to-day operations.

Balancing the discussions were practical considerations into resolution planning, such as the separability of financial institutions and the pivotal role of Information Technology (IT) throughout phases of a transfer of business transactions, legal aspects and the role of boards of directors in overseeing these transactions to success.

The panel and masterclass sessions held throughout the NRS brought valuable insights, real-world experiences and case studies on resolution for conventional and Islamic banks as well as insurance companies. As a platform, the NRS also achieved its objectives to facilitate intellectual discourse and thought-provoking discussions about resolution and foster greater collaboration amongst stakeholders towards enhancing Malaysia’s financial system resilience through resolution planning.

To gain an in-depth understanding on what resolution is all about and what resolution authorities can do in the face of financial institution crises, check out PIDM’s recently launched Resolution Case Studies booklet that highlights 25 global financial institution failures and the experiences gathered from their resolution. Additionally, you can read here to learn more about PIDM's role as a resolution authority for its member institutions.
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