PIDM completes key initiatives in its Corporate Plan 2016–2018

KUALA LUMPUR: Perbadanan Insurans Deposit Malaysia (PIDM) released its Annual Report 2016 and announced the results of its ongoing efforts and successful completion of key initiatives set out in its Corporate Plan 2016– 2018 within the board- approved financial plan recently.

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 focussed efforts to ensure continued preparedness to contribute to stability in the fi nancial system.

As part of these efforts, PIDM regularly tests its capabilities to ensure the public prompt access to their savings in the unlikely event of a member institution failure.

PIDM executive general manager Rafiz Azuan Abdullah said last year, 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,” he said.

In line with its efforts for preparedness last year, PIDM also worked on the key resolution planning framework for the orderly resolution of all member institutions, regardless of size or complexity, without systemic impact on the stability of the financial system (‘ resolution planning’).

“The objective of resolution planning is to ensure there are feasible plans to enable the orderly resolution of all member institutions without disastrous impact on the financial system as a whole. Ultimately, authorities are better able to ensure the stability of the fi nancial system and economy and, with these efforts, PIDM can better protect the Malaysian public,” he added.

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 fi nalising 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 (2015: 53 per cent), while DIS and TIPS awareness levels increased by nine per cent to 50 per cent (2015: 41 per cent) and eight per cent to 34 per cent ( 2015: 26 per cent) respectively.

Last year, 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.