The Financial Stability Board (FSB) has launched a review of deposit insurance systems in FSB member jurisdictions. The recent global financial crisis illustrated the importance of effective depositor compensation arrangements. In response, the Basel Committee on Banking Supervision and the International Association of Deposit Insurers jointly issued in June 2009 the Core Principles for Effective Deposit Insurance Systems. Using the Core Principles as a benchmark, the FSB’s peer review will take stock of existing deposit insurance systems and of planned changes. It will also draw lessons about the effectiveness of reforms to systems in response to the crisis.
A questionnaire (attached) to collect information from national authorities has been distributed to FSB members. The responses will be analysed and discussed by the FSB later this year. The peer review report will be published in early 2012.
As part of this peer review, the FSB invites feedback from financial institutions, industry and consumer associations, as well as other stakeholders on experiences with deposit insurancesystems, either in a particular country or across several countries. This could include comments on: the role of deposit insurance in the broader financial system safety net; lessons from, and the effectiveness of reforms undertaken in response to, the financial crisis; and potential gaps in the design of deposit insurance systems, such as in terms of coverage, cross-border cooperation, funding, public awareness and depositor reimbursement.
Feedback should be submitted by 26 August 2011 to fsb@bis.org under the subject heading “FSB Thematic Peer Review on Deposit Insurance Systems.” Individual submissions will notbe made public.
This is the second thematic peer review initiated by the FSB in 2011. The first is the follow-up peer review on compensation practices, which will be completed in late 2011.