Canopy Deposit Insurance Payout System

Strategy Execution Results

InfoGroup Ltd. Unit 21 Seymour Park Kingston 10, Jamaica www.myinfogroup.com

2

“The spread of explicit deposit insurance has partly been a response to a series of banking crises in various countries over the past twenty years.”

Many countries have adopted deposit insurance in recent years in order to replace the informal practice of providing ad hoc protection for bank depositors when crises arise. The spread of explicit deposit insurance has partly been a response to a series of banking crises in various countries over the past twenty years. In order to reduce the risk of runs on financial institutions and ensure ongoing compliance and monitoring, Central Banks have been putting regulations in place which require the adoption of an explicit system of mandatory deposit protection with specified minimum levels of coverage. When a Financial Institution (Policyholder) is in a state of financial distress, the Deposit Insurer (DI) will be required to assist the Supervisor of Banks and Financial Institutions in determining the most appropriate resolution strategy. Consequently, the DI will have to determine its insured deposit liability with regard to the institution. Additionally, in the case of the failure of a Policyholder (and the decided resolution strategy is a payout) and the DI is obliged to make payment out of the Fund, the DI will pay out the depositors of the Policyholder. In performing a payout, the DI has the following objectives to achieve:

Provide timely, accurate and reliable information and service to internal and external stakeholders (Internal stakeholders include: Board of Directors; management; auditors; customer service representatives and other members of the Payout team. External stakeholders include: depositors; general public; Policyholders; Liquidator; the media; members of the “financial safety net” - Government entities charged with maintaining a nation’s financial safety, such as the country’s Central Bank, et al.

Make deposit insurance payments available to all insured depositors as soon as possible after the institution is closed (some DI’s objective is to commence payment to depositors within a period not exceeding 14 days after the Policyholder is closed).

The Deposit Insurance Pay-out Process

3

Ensure that deposit insurance payments are accurate.

Ensure that the payout is conducted in a manner that minimizes the DI’s exposure to loss, promotes financial system confidence and stability and preserves the reputation of the DI and the Deposit Insurance Scheme. The determination of each depositor’s insurance entitlement due under the Law and the payout of the depositors of a failed Policyholder can be relatively complex and time consuming undertakings. This involves planning and managing the execution of various activities.

The Canopy Deposit Insurance Payout System (Canopy) provides an efficient way to automate these activities:

Extracting and transforming customer and account data obtained from the Policyholder;

Reconciling and verifying deposit account balances; Aggregating accounts maintained by the same depositors; Identifying insurable and uninsurable deposits; Calculating accrued deposit interest; Deducting arrears in respect of:

credit facilities, deposits pledged as collateral for overdrafts, deposits pledged as collateral for called in guarantees; advances made

Calculating each depositor’s insured deposit payment and Making payments to depositors.

1

Continued.

“The Canopy Deposit Insurance Payout System contains proprietary optimized algorithms which allow the system to process millions of records in minutes.”

The Deposit Insurance Ecosystem