The XIII Annual General Meeting (AGM) and Annual Conference of the International Association of Deposit Insurers (IADI) took place on 20-24 October 2014 in Port of Spain (Trinidad and Tobago).
Jerzy Pruski, President of the Management Board of the Bank Guarantee Fund, presided over the proceedings of the IADI AGM and the 43rd Executive Council Meeting (EXCO). Mr. Pruski has been the Association’s President and Chair of its Executive Council since October 2012.
The Executive Council approved the revised Core Principles for Effective Deposit Insurance Systems, thereby affirming the conclusion of the process of a thorough update of the Core Principles, initiated in 2013. After approval, the updated Core Principles were presented to the Annual General Meeting of the Association. Additionally, the IADI AGM and Annual Conference were accompanied by a number of IADI committees, sub-committees as well as IADI working group meetings, with a representative of the Bank Guarantee Fund chairing the meeting of the Subcommittee on Bail-in implications for deposit insurance and funding.
The accompanying Annual Conference was entitled "Updated Core Principles to Strengthen the Financial Stability Architecture", during which Mr. Pruski in his speech pointed out how the update and revision of the Core Principles contributes to strengthening deposit insurance systems and enhancing their role in contributing to financial stability. In the Conference session entitled “The Core Principles and Bank Resolution”, the Deputy President of the Bank Guarantee Fund Management Board made a presentation on establishing a resolution authority within a given jurisdiction.
The Core Principles for Effective Deposit Insurance Systems are a collection of best international practices and standards to improve the efficiency of deposit insurance systems. The Core Principles, jointly developed by IADI and the Basel Committee on Banking Supervision (BCBS) and adopted in 2009, have now been updated. The newly developed solutions much better reflect the current operating environment of deposit insurance systems and they address areas identified by the Financial Stability Board (FSB) as those in need of revision or enhanced guidance. The updated standards include a 7-day reimbursement period – shortening of the payout delay is conducive to the stability of the financial system and increases confidence in the banking system; and provisions on ex-ante funding for deposit insurance systems – preferable due to their counter-cyclical nature.
