Malaysia: Publication of Financial Sector Assessment Program Documentation—Detailed Assessment of Observance of Core Principles for Effective Deposit Insurance Systems
IMF Staff Country Reports, March 8, 2013
Source details
- Canonical URL
- Malaysia: Publication of Financial Sector Assessment Program Documentation—Detailed Assessment of Observance of Core Principles for Effective Deposit Insurance Systems
Other formats
Bibliographic details
- Published: March 8, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475585353.002
Core assessment and scope
- Evaluates Malaysia’s compliance with the Core Principles for Effective Deposit Insurance Systems (Core Principles).
- Reviews relevant laws, regulations, and regulatory and supervisory practices related to the conventional banking sector and the operations of Perbadanan Insurans Deposit Malaysia (PIDM).
- Covers Islamic deposits and the operation of a separate Islamic Deposit Insurance Fund (IDIF).
Key findings and observations
- The assessment notes several weaknesses in the legal framework governing deposit insurance and related regulatory/supervisory arrangements.
- Despite noted legal weaknesses, there has been no experience with bank failures in Malaysia since PIDM’s establishment in 2005.
- The paper explicitly addresses both conventional deposit insurance arrangements and Islamic deposit insurance arrangements (IDIF).