The Basel Committee on Banking Supervision and the International Association of Deposit Insurers (IADI) today issued the Core Principles for Effective Deposit Insurance Systems for public consultation.
The Financial Stability Forum, in an April 2008 report on the financial crisis, called on authorities to agree on an international set of principles for effective deposit insurance systems. The Basel Committee/IADI core principles are the result of that recommendation. The core principles address a range of issues including deposit insurance coverage, funding and prompt reimbursement. They also address issues related to public awareness, resolution of failed institutions and cooperation with other safety net participants including central banks and supervisors.
Martin Gruenberg, Chairman of IADI and member of the Basel Committee, noted that "The core principles are the product of a cooperative effort between the Basel Committee and IADI to respond to one of the lessons of the financial crisis: the need for effective systems of deposit insurance to help maintain public confidence. They set an important benchmark for countries to use in establishing or reforming deposit insurance systems".
Comments on the paper should be submitted by 15 May 2009 by email to: firstname.lastname@example.org or Service.IADI@bis.org. Alternatively, comments may be sent by post to the Basel Committee on Banking Supervision secretariat or the IADI secretariat. The mailing address for both secretariats is: Bank for International Settlements, CH-4002 Basel, Switzerland.