FAQs

PIDM's resolution powers will be triggered when BNM notifies PIDM under section 98 of the PIDM Act, in writing, that BNM is of the opinion that a member institution has ceased to be viable, or is likely to cease to be viable. BNM and PIDM will consult and coordinate with each other in relation to the non-viability notification and preparation.

In determining the non-viability of a member institution, BNM may take into consideration a combination of criteria, including capital, liquidity, profitability, business viability, confidence over the management of the member institution and extent of regulatory non-compliance, if any.

During the recovery stage, PIDM member institution is responsible to execute its recovery options to maintain or restore its long-term viability.

In the event recovery options fail to restore the member institution long-term viability and a notice of non-viability is issued by BNM, PIDM or its appointed person as defined under paragraph 99(1)(c) of the PIDM Act, may assume control of the member institution with a view to resolve the failing institution in an orderly manner.

In the resolution stage, the continuous support a failing member institution and its

management would be crucial to ensure effective implementation of resolution actions and maintaining financial stability.