FAQs

PIDM is mandated under the PIDM Act to act as the resolution authority for its member institutions. PIDM’s resolution powers extend to its member institutions only.

In the event a non-member institution of PIDM fails and if such failure does not affect the viability of a member institution, the failure of the non-member institution will be dealt with under the relevant insolvency procedures separately by the relevant authorities responsible for the non-member institution.

However, if the failure of a non-member institution causes a member institution to enter into resolution, PIDM will be responsible to resolve the member institution. PIDM will coordinate and collaborate with other relevant authorities, both foreign and domestic, such as BNM, Securities Commission or Bursa Malaysia to ensure effective and orderly resolution of a member institution group.

PIDM will continue to uphold Shariah requirements in a resolution. For example, in executing the transfer strategy, PIDM will ensure that the acquiring entity is authorised to carry on Islamic banking business, such as an entity licensed by BNM under the Islamic Financial Services Act 2013 (“IFSA”) to carry on Islamic banking business and subject to the applicable Shariah requirements.

In relation to the implementation of an Islamic BI, PIDM has established an Islamic subsidiary, which once designated as a BI is intended to operate as a licensed Islamic bank subject to BNM and Shariah requirements under the IFSA, unless otherwise exempted.