Kuala Lumpur, 16 December 2015: Perbadanan Insurans Deposit Malaysia (PIDM) announced that the PIDM (Amendment) Bill 2015 to enhance PIDM’s resolution powers and align certain provisions with the Financial Services Act 2013 (FSA) and the Islamic Financial Services Act 2013 (IFSA) has been approved by the Dewan Rakyat in the recent Parliamentary sitting. The Bill will be tabled at the Dewan Negara soon.
The enhancements to PIDM’s resolution toolkit will soon include share transfer powers to address non-viable member institutions (MIs) promptly and effectively.
Specifically, the share transfer tool will empower the Corporation to compel the sale of shares by shareholders of a non-viable MI to a willing private sector buyer in certain circumstances, and subject to the requisite approval of the Minister of Finance.
“Experience shows that prompt and early resolution action against troubled institutions will minimise the cost of failures and maintain stability in the financial system. Promptness is key,” said PIDM Chief Executive Officer, Mr Jean Pierre Sabourin.
Such powers are not unprecedented in other parts of the world. Since the global financial crisis, regulatory agencies such as in the U.K., Canada and Singapore, have incorporated additional resolution powers in their legislative framework.
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PIDM protects your deposits in the bank as well as your takaful and insurance benefits in the unlikely event of a failure of a member bank or a takaful operator / insurance company.