On 17 February 2016, Mr. Jerzy Pruski, President of the Management Board of the Bank Guarantee Fund, delivered a keynote address on the topic of global macroeconomic challenges for financial stability and deposit insurance at the international conference “9th DICJ Round Table” in Kyoto, Japan, organized by the Deposit Insurance Corporation of Japan.
Speaking to the financial stability implications associated with an elevated level of macroeconomic risks in emerging markets, Mr. Pruski provided an implementation summary in G20 jurisdictions of a package of reforms recommended by the Financial Stability Board (FSB), including those pertaining to capital adequacy and liquidity standards (the so-called Basel III suite of reforms) for credit institutions. In exploring implementation progress in the area of resolution framework in the aforementioned jurisdictions, Mr. Pruski underscored the inadequate degree of implementation in emerging markets, adding that an important factor in counteracting future crises is the introduction of a fully-fledged financial safety net model, in which a significant role is played by strong, effective and credible deposit insurance systems, as well as resolution authorities.
Referring to the activity of the International Association of Deposit Insurers (IADI), an organization headed by Mr. Pruski in the years 2012-2015, he emphasized the important role played by the Association in supporting developing countries in their efforts to enhance their deposit insurance systems and resolution frameworks. Mr. Pruski also noted in this context that these two functions (deposit insurance and resolution), owing to the positive synergies flowing from such a solution, are increasingly being organized as a single institutional entity.
The “DICJ Round Table” is a cyclical event, gathering together participants from across the globe and providing a forum for exchange of experiences and best practices in the domain of deposit insurance and, more broadly, financial stability.
