Kuala Lumpur, 24 May 2017: Perbadanan Insurans Deposit Malaysia (PIDM) released its Annual Report 2016 and announced the results of PIDM’s ongoing efforts and successful completion of key initiatives set out in its Corporate Plan 2016–2018 within the Board-approved financial plan.
The Annual Report, themed ‘Safeguarding Financial Consumers’, highlights how PIDM provides Malaysians with deposit and insurance and takaful benefits protection. The report highlights how PIDM has focussed its ongoing efforts to ensure continued preparedness to contribute to stability in the financial system. As part of these efforts, PIDM regularly tests its capabilities to ensure the public has prompt access to their savings in the unlikely event of a member institution failure.
“In 2016, the Corporation carried out a payout simulation for the liquidation of a hypothetical mid-sized member bank. The successful completion of this exercise demonstrates that our system and people can carry out a prompt and timely payout to depositors should we be called to do so,” said Rafiz Azuan Abdullah, Executive General Manager.
In line with its efforts for preparedness, in 2016, PIDM also worked on the key resolution planning framework for the orderly resolution of all member institutions regardless of size or complexity without having a systemic impact on the stability of the financial system (‘resolution planning’).
“The objective of resolution planning is to ensure that there are feasible plans to enable the orderly resolution of all member institutions without disastrous impact on the financial system as a whole. Ultimately, this means that authorities are better able to ensure the stability of the financial system and the economy and with these efforts, PIDM can better protect the Malaysian public,” stated Rafiz.
In relation to resolution planning, PIDM will be engaging and working collaboratively with the industry, other financial safety net players and relevant stakeholders. Pilot exercises will be conducted to develop resolution plans for certain member banks, with a view to testing and finalising the resolution planning framework.
The 2016 Annual Report also highlights the results of PIDM’s ongoing programmes to increase the Malaysian public’s understanding of PIDM’s role. Public awareness is steadily increasing as planned. The results of the survey recorded an overall increase in public awareness levels as compared to 2015. Awareness of PIDM increased by 6% to 59% (2015: 53%), while DIS and TIPS awareness levels increased by 9% to 50% (2015: 41%) and 8% to 34% (2015: 26%) respectively.
In 2016, PIDM reported a total income of RM557.4 million with an operational net surplus of RM458.5 million, increasing the Corporation’s total funds and reserves to RM3.1 billion.
The Annual Report 2016 is available on PIDM’s website at www.pidm.gov.my.
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For more information about this press release, kindly contact:
Syed Mohammed Idid, General Manager, Communications and Public Affairs Division
(Tel: 03-2173 7455; 012-3430848; Email: syedidid@pidm.gov.my)
Mimi Rashid, Senior Manager, Communications and Public Affairs Division
(Tel: 03-2173 7570; Email: mimifaizura@pidm.gov.my)
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ABOUT PIDM
PIDM is a statutory body that provides protection against the loss of deposits and insurance or takaful benefits with its member institutions in the event of failure. PIDM is entirely funded by premiums or levies assessed on its member institutions and does not receive public funds to operate. It has the means under the PIDM Act to borrow or raise such funds as may be needed to fulfil its statutory obligations to protect financial consumers of its member institutions. As an integral part of the national financial safety net, the Corporation promotes and contributes to the stability of the financial system.
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