ETHICS AND ISSUES IN FINANCE FIN 657

NAME : RAFIZAH IRZAH RAHMAT MATRIC NO. : 2010646622

MALAYSIA DEPOSIT INSURANCE CORPORATION OR PERBADANAN INSURANS DEPOSIT MALAYSIA (PIDM)

INTRODUCTION
Perbadanan Insurans Deposit Malaysia (PIDM) is a Government body established in 2005 under the Akta Perbadanan Insurans Deposit Malaysia (PIDM Act).

Also known as the Malaysia Deposit Insurance Corporation (MDIC), especially within the international context.

MANDATE OF PIDM
Administer a deposit insurance system and a takaful and insurance benefits protection system. Promote or contribute to the stability of the financial system.

Provide protection against the loss of part or all of takaful or insurance benefits for which an insurer member is liable.

Provide incentives for sound risk management in the financial system.

WHAT PROTECTION PIDM PROVIDE?

Deposit Insurance System

Takaful and Insurance Benefits Protection System

DEPOSIT INSURANCE SYSTEM

Deposit insurance is a system established by the Government to protect depositors against the loss of their insured deposits placed with member institutions in the event the member institution fails. Commercial and Islamic banks that are member institutions of PIDM are also referred to as member banks. A deposit insurance system enhances consumer protection by providing explicit protection to depositors.

BENEFITS TO DEPOSITORS
protects your bank deposits and will promptly reimburse you on your insured deposits should a member bank fail. protection is provided by PIDM automatically and no application is required. no charge to depositors for this protection.

BENEFITS TO THE FINANCIAL SYSTEM

protecting depositors against the loss of their deposits. providing incentives for sound risk management in the financial system. minimises costs to the financial system by finding least cost solutions to resolve failing member institutions. dealing with member institution failures expeditiously and reimbursing depositors as soon as possible

COVERAGE

Deposits eligible for protection Current and savings deposit accounts Fixed deposits Joint accounts, trust accounts Foreign currency deposits Deposits NOT eligible for protection Deposits not payable in Malaysia Inter-bank money market placements Negotiable instruments of deposit (NIDs) and other bearer deposits Repurchase agreements Unit trusts

TAKAFUL AND INSURANCE BENEFITS PROTECTION SYSTEM (TIPS)

TIPS is a system established by the Government to protect owners of takaful certificates and insurance policies from the loss of their eligible takaful or insurance benefits in the unlikely event of an insurer member failure. Takaful operators and insurance companies which are member institutions of PIDM are also referred to as insurer members.

BENEFITS TO DEPOSITORS
protects you against the loss of your eligible takaful or insurance benefits should an insurer member fail. automatically and no application is required. no charge to owners of takaful certificates and insurance policies for this protection.

BENEFITS TO THE FINANCIAL SYSTEM

protecting takaful certificate and insurance policy owners against the loss of their benefits. providing incentives for sound risk management in the financial system. finding least cost solutions to resolve failing member institutions. dealing with member institution failures expeditiously.

CONCLUSION

The establishment of PIDM has encouraged more people to save their money in the bank as their money will be protected. The PIDM has helped all the Malaysians, both low-income group and high-income group. Then, people are more confidence to save their money in member banks.

THANK YOU
Q & A SESSION