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International Association of Deposit Insurers

The International Association of Deposit Insurers (IADI) was formed on 6 May 2002 with the purpose of sharing deposit insurance expertise with the world and contributing to the stability of financial systems as the standard setter for deposit insurance with a global and expanding membership. IADI is a non-profit organisation constituted under Swiss Law and a separate legal entity domiciled at the Bank for International Settlements (BIS) in Basel, Switzerland.

Contents

IADI in briefEdit

  • Name of organisation: International Association of Deposit Insurers
  • Founded: 6 May 2002
  • Legal entity: a non-profit organisation constituted under Swiss law
  • Domicile: Basel, Switzerland
  • Vision: To share deposit insurance expertise with the world
  • Mission: To contribute to the enhancement of deposit insurance effectiveness by promoting guidance and international cooperation
  • Objectives: To contribute to the stability of financial systems by promoting international cooperation in the field of deposit insurance, and to encourage wide international contact among deposit insurers and other interested parties
  • Membership: 106 participating organisations (82 Members, 10 Associates and 14 Partners) as of June 2016[1]

About IADIEdit

The International Association of Deposit Insurers (IADI) is the global standard-setting body for deposit insurance systems. It contributes to the stability of financial systems by enhancing the effectiveness of deposit insurance and promoting international cooperation on deposit insurance and bank resolution arrangements in active partnership with other international organisations. IADI draws upon its membership to provide guidance on the establishment or enhancement of effective deposit insurance systems, as well as technical assistance outreach, educational programs and research.

Founded in 2002, IADI is a non-profit organisation constituted under Swiss law and domiciled at the Bank for International Settlements (BIS) in Basel, Switzerland. Along with the other standard setters and committees hosted and supported by the BIS, IADI is a part of the Basel Process,[2] sharing with its host and peers the common goal of global financial stability and ensuring that jurisdictions’ financial systems operate effectively, support economic growth, and interact in an increasingly global environment.

IADI’s standards, outlined in its Core Principles for Effective Deposit Insurance Systems (Core Principles), are part of the Key Standards for Sound Financial Systems of the Financial Stability Board (FSB); and are used in the Financial Sector Assessment Program (FSAP) reviews conducted by the International Monetary Fund (IMF) and the World Bank. As a member of the FSB’s Resolution Steering Group, IADI contributes to the design of international standards and guidance for effective resolution regimes.

Governance and OrganisationEdit

IADI is governed by the General Meeting of its Members and IADI Executive Council (EXCO). The General Meeting elects the officers of IADI, including the President and Treasurer. The current President, Thomas M. Hoenig, (Vice Chairman of the Federal Deposit Insurance Corporation) is serving a two-year term beginning October 2015.

EXCO ensures the smooth functioning of IADI’s affairs, and is structured as an inclusive body which involves the active participation of its membership. There are currently 25 EXCO members and they are elected at the IADI Annual General Meeting (AGM), typically to serve three-year terms. EXCO establishes committees to support IADI’s objectives. As of November 2015, there are seven Standing Committees and eight Regional Committees.

The details about IADI’s governance and organisational structure[3] can be found on IADI website with the underscore link.

SecretariatEdit

The IADI Secretariat, which is based in Basel, Switzerland, manages the daily business and affairs of the Association. It also supports IADI’s agenda and the implementation of its mission, goals and strategic priorities. The details about IADI Secretariat can be found on IADI website with the underscore link.

MembershipEdit

IADI has three categories of Membership participation, as well as Partners. As of June 2016, there are 106 participating organisations including 82 Members, 10 Associates and 14 Partners. The full list of IADI participants[1] can be found on IADI website with the underscore link.

Core Principles for Effective Deposit Insurance SystemsEdit

To enhance deposit insurance effectiveness and meet its Members’ needs, IADI undertakes research and issues core principles and supporting guidance. The Core Principles for Effective Deposit Insurance Systems[4] (Core Principles) were first issued by IADI and the Basel Committee on Banking Supervision (BCBS) in June 2009, and updated by IADI in October 2014. IADI’s Core Principles promote best international standards in deposit insurance and support the stability and soundness of financial systems. IADI, in collaboration with the BCBS, IMF, the World Bank, European Forum of Deposit Insurers (EFDI) and European Commission developed a Methodology for the Assessment of Compliance with the Core Principles. Such assessments include self-assessments and Financial Sector Assessment Programs (FSAPs) reviews conducted by IMF and the World Bank, as well as country and peer review programs conducted by the FSB. Being a part of the FSB Compendium of Key Standards for Sound Financial Systems, the IADI Core Principles are used by international community in assessing the condition of financial systems. A comprehensive, credible and action-oriented assessment of a deposit insurer against the Core Principles identifies strengths and weaknesses in an existing system and forms a basis for improvement measures by policymakers. Proper application of the IADI Core Principles gives significant advantage in the pursuit of financial stability, pairing the right protection for retail depositors with more multifaceted aspects of crisis management. The details about the Core Principles[4] can be found on IADI website with the underscore link.

Research and GuidanceEdit

One of IADI’s key objectives is to facilitate sharing expertise and information on deposit insurance issues. IADI produces research, discussion and guidance papers. The research projects are conducted under the auspices of the Research and Guidance Committee with the objective of providing academia, policy makers, deposit insurers and other interested parties with guidance and research data to improve the effectiveness of deposit insurance system in their respective jurisdictions. The details about IADI Research and Guidance Papers[5] can be found on IADI website with the underscore link.

ReferencesEdit

IADI official website at www.iadi.org

NotesEdit

  1. ^ a b "IADI Members and Participants". from IADI official website. IADI Webmaster. Retrieved 24 November 2015. 
  2. ^ "Basel Process". refers to the BIS’s role in hosting and supporting the work of international groups – six committees and three associations – engaged in standard-setting and the pursuit of financial stability, including: the Basel Committee on Banking Supervision (BCBS), the Committee on the Global Financial System (CGFS), the Committee on Payments and Market Infrastructures (CPMI), the Irving Fisher Committee on Central Bank Statistics (IFC), the Financial Stability Board (FSB), IADI, the International Association of Insurance Supervisors (IAIS), and the Financial Stability Institute (FSI). The Basel Process is based on three key features: synergies of co-location; flexibility and openness in the exchange of information; and support from the BIS’s expertise in economics, banking and regulation. 
  3. ^ "IADI’s governance and organisational structure". from IADI website. IADI Webmaster. Retrieved 24 November 2015. 
  4. ^ a b "The Core Principles for Effective Deposit Insurance Systems". from IADI official website. IADI Webmaster. Retrieved 24 November 2015. 
  5. ^ "IADI Research and Guidance Papers". from IADI official website. IADI Webmaster. Retrieved 24 November 2015.