Perbadanan Insurans Deposit Malaysia (PIDM) recently held its Industry Dialogue session for the year 2023, attended by 122 representatives from member institutions and industry groups to discuss the key developments in the regulatory and operating environment of both the banking and insurance industries.
Rafiz Azuan Abdullah, the Chief Executive Officer of PIDM, presented strategic insights on the global and domestic banking and insurance landscape. This included deposit trends and industry performance, as well as valuable lessons from recent failures of banks and insurance companies in other countries. “The failure of a Financial Institution (FI) can be unexpected, costly, swift, and could spread to other institutions. Protection coverage for depositors and owners of takaful certificates and insurance policies, as well as robust planning for the resolution of troubled FIs, are important pillars for public confidence and financial stability, especially in times of crisis”, said Rafiz.
The dialogue fostered an exchange of views between PIDM and member institutions, including key industry developments and feedback on PIDM’s policies. These cover the areas of resolution planning for member banks, enhancements to the risk-based differential premium and levy systems, PIDM’s funding targets, and efforts to increase public awareness of PIDM’s protection systems.
As a financial consumer protection and resolution authority, PIDM continues to engage member institutions, industry associations, and other financial safety net players to enhance its policies and promote the stability of the Malaysian financial system. PIDM will also be hosting its inaugural National Resolution Symposium in October 2023 as part of ongoing efforts to raise awareness of the financial industry and key stakeholders on the growing importance of resolution.