options that provide more confidence to depositors, as well as on the interaction between deposit insurance and the other safety-net participants - supervision and resolution. I was encouraged by the commitment shown by both organizations to work together to promote effective standards and relevant policies that further support financial stability. The work plan of the Resolution Steering Group for 2024 specifically calls for further cooperation and engagement with IADI. Two additional points. Strong governance allows IADI to have an effective voice as the deposit insurance standard setting body and to participate in the ongoing global conversation on behalf of deposit insurers. I look forward to seeing the progress the Executive Council and the General Meeting make on important reforms to the IADI governance structure. Finally, IADI can also improve its policy formulation and monitoring processes. These processes are key to achieving the organization’s strategic goals of promoting deposit insurance system compliance with the Core Principles, advancing deposit insurance research and policy development, and providing members with technical support to modernize and update their systems. IADI is uniquely positioned to serve as a global resource for deposit insurers and resolution authorities by collecting, storing, and sharing data and information on deposit insurance and bank resolution. Conclusion In conclusion, let me once again thank my friend Alejandro Lopez for the chance to speak with you all today. I believe this is a moment of opportunity for IADI. I can’t remember a time in which deposit insurance has been more central to global discussions of financial stability and financial risk. The global financial community needs IADI’s participation in those discussions and IADI is well positioned to play an influential role. I look forward to the work to come.
IADI’s Role in Global Financial Leadership The bank failures of 2023, including Credit Suisse in Switzerland, have prompted many important policy discussions. As these discussions evolve, IADI will be called upon to provide leadership in its role as the international standard setter and global voice for deposit insurers. In that regard, IADI has a critical role to play in bringing together the deposit insurers of the world to share experiences, discuss forward-looking policies, and provide support in meeting the challenges posed by this year’s events. Revising IADI’s Core Principles will be an integral part of this process. This is an opportune time to incorporate the lessons of this year. The Core Principles have served deposit insurers around the world well and have been adopted as the international benchmark on which an effective deposit insurance system should be based. The stress in the banking sector earlier this year was a reminder of the importance of sound deposit insurance policies that must keep pace with the evolving banking environment and bank failures. This is an opportune time to incorporate the lessons of this year.”
Guidance on the liquidity risks of uninsured deposits would seem to be a particularly urgent topic to address.
The IADI Core Principles are complements to the Financial Stability Board’s (FSB) Key Attributes for Effective Resolution Regimes (Key Attributes). Of significant note, these organizations have already begun developing a stronger relationship. The IADI Executive Council (EXCO) met with the FSB Resolution Steering Group (ReSG), which I chair, in June to discuss recent events and areas where IADI and the FSB can collaborate on deposit insurance topics as they relate to resolution. Following the joint discussion, IADI committed to conduct further work on coverage and the potential impact of different
Thank you.
24 INTERNATIONAL COLLABORATION
Powered by FlippingBook