PIDM continues to enhance organisational preparedness
KUCHING: Perbadanan Insurans Deposit Malaysia ( PIDM) announced the results of PIDM’s ongoing efforts and successful completion of key initiatives set out in its Corporate Plan 20162018 within the Board-approved financial plan.
This came as it released its Annual Report 2016, themed ‘ S a f e guarding Financial Consumers’, which 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 midsized 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 executive general manager Rafiz Azuan Abdullah.
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.
“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.
“U l t i m a t e l y, this means that authorities are better abl e to ensure the s t ability 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 six per cent to 59 per cent, compared to 53 per cent in 2015.
Meanwhile, DIS and TIPS awareness levels increased by nine per cent to 50 per cent, and eight per cent to 34 per cent 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.