issue & ethics 2

8/13/2019 Issue & Ethics 2

1/14


2/14

MALAYSIA DEPOSIT INSURANCE

CORPORATION OR PERBADANAN

INSURANS DEPOSIT MALAYSIA (PIDM)


3/14


4/14

INTRODUCTION

Perbadanan Insurans DepositMalaysia (PIDM) is a Governmentbody established in 2005 under the

Akta Perbadanan Insurans DepositMalaysia (PIDM Act).

Also known as the Malaysia

Deposit Insurance Corporation(MDIC), especially within theinternational context.


5/14

MANDATE OF PIDM

Administer a depositinsurance systemand a takaful and

insurance benefits

protection system.

Provide protection againstthe lossof part or all of

takaful or insurancebenefits for which aninsurer member is liable.

Provide incentivesfor sound risk

management in thefinancial system.

Promote orcontribute to thestability of the

financial system.


6/14

WHAT PROTECTION PIDM PROVIDE?

Deposit Insurance System

Takaful and Insurance Benefits Protection

System


7/14

DEPOSIT INSURANCE SYSTEM

Deposit insurance is a system established by the

Government to protect depositors against the loss of

their insured deposits placed with member institutions in

the event the member institution fails.

Commercial and Islamic banks that are memberinstitutions of PIDM are also referred to as member

banks.

A deposit insurance system enhances consumer

protection by providing explicit protection todepositors.


8/14

BENEFITS TODEPOSITORS

protects your bankdeposits and will promptlyreimburse you on yourinsured deposits should amember bank fail.

protection is provided byPIDM automatically and noapplication is required.

no charge to depositors forthis protection.

BENEFITS TO THEFINANCIAL SYSTEM

protecting depositorsagainst the loss of theirdeposits.

providing incentives forsound risk management in

the financial system. minimises costs to the

financial system by findingleast cost solutions toresolve failing memberinstitutions.

dealing with memberinstitution failuresexpeditiously andreimbursing depositors assoon as possible


9/14

COVERAGE

Deposits eligible for protection

Current and savings deposit accounts

Fixed deposits

Joint accounts, trust accounts

Foreign currency deposits

Deposits NOT eligible for protection

Deposits not payable in Malaysia

Inter-bank money market placements

Negotiable instruments of deposit (NIDs) and other bearer deposits

Repurchase agreements Unit trusts


10/14

TAKAFUL AND INSURANCE BENEFITS

PROTECTION SYSTEM (TIPS)

TIPS is a system established by the Government to protect

owners of takaful certificates and insurance policies

from the loss of their eligible takaful or insurance

benefits in the unlikely event of an insurer member failure.

Takaful operators and insurance companies which aremember institutions of PIDM are also referred to as insurer

members.


11/14

BENEFITS TO

DEPOSITORS

protects you against theloss of your eligible takafulor insurancebenefits should an insurermember fail.

automatically and noapplication is required.

no charge to owners oftakaful certificates and

insurance policies for thisprotection.

BENEFITS TO THE

FINANCIAL SYSTEM

protecting takafulcertificate and insurancepolicy owners against theloss of their benefits.

providing incentives forsound risk management inthe financial system.

finding least cost solutionsto resolve failing member

institutions. dealing with member

institution failuresexpeditiously.


12/14

CONCLUSION

The establishment of PIDM has encouraged more people

to save their money in the bankas their money will be

protected.

The PIDM has helped all the Malaysians, both low-income

group and high-income group.

Then, people are more confidence to save their money in

member banks.


13/14


14/14

THANK YOU

Q & A SESSION

issue & ethics 2

Documents