PIDM issues Membership Regulations

Kuala Lumpur, 15 September 2008: National deposit insurer Perbadanan Insurans Deposit Malaysia (PIDM) is pleased to announce today the coming into force of its Regulations on Terms and Conditions of Membership (the Regulations).

The Regulations come after an extensive consultation process with Bank Negara Malaysia (BNM), the banking industry and other interested parties. This included the issuance of a public consultation paper on the issue in May 2007.

One of the key requirements of the Regulations is that member banks must maintain an adequate level of capital and liquid assets in accordance with the requirements of BNM. They must also have in place appropriate, effective and prudent risk management policies, procedures and controls.

“The Regulations are also intended to promote the exchange of information including communication of timely and relevant information on the condition of banks, as well as certain activities that could affect the depositing public. As an example, one of the requirements of the Regulations calls for a member bank to inform PIDM, within seven (7) days, of any event that is considered unusual in the course of its business,” said Jean Pierre Sabourin, the Chief Executive Officer of PIDM.

In addition, the Regulations set out a requirement for member banks to maintain appropriate records. Member banks are required to prepare and maintain accurate records that correctly describe and disclose all their assets and liabilities (whether on or off balance sheet) including deposits. All deposit records are to be retained in Malaysia.

Member banks of PIDM are all the commercial banks and Islamic banks in Malaysia, including foreign banks incorporated and operating in the country. Currently, PIDM has 36 member banks, comprising 22 commercial banks and 14 Islamic banks.

The gazetted Regulations, made pursuant to sections 38 and 100 of the Akta Perbadanan Insurans Deposit Malaysia 2005 (Akta PIDM), are available for reference on PIDM’s website at www.pidm.gov.my.
 

For more information about this press release, kindly contact : S.Loganathan, General Manager, Communications and Public Affairs Division (Tel : 03-2173 7455) Chareen Loh, Assistant Manager, Communications and Public Affairs Division (Tel : 03-2173 7456)

 

ABOUT PIDM

PIDM administers the Government-backed deposit insurance in Malaysia. We protect depositors – automatically – up to RM60,000 per depositor per member institution. For further information:

• Call 1-800-88-1266, 8.30am to 5.30pm on Monday – Friday (excluding public holidays)
• Email: info@pidm.gov.my
• Visit: www.pidm.gov.my