The Central Deposit Insurance Corporation (CDIC) held the International Training Seminar on Payout Operations, Mechanisms and Case Studies on November 22 to 25, 2016, at the headquarter of the CDIC in Taipei. The CDIC invited payout experts from the United States, Hungary, Korea, Philippines, Singapore and Malaysia, where there were payout cases or payout simulations in recent years, as the speakers of this Seminar. Participants of the Seminar include representatives of Taiwan's Central Bank and the Financial Supervisory Commission (FSC), representatives from CDIC's MOU or Letter of Exchange partners, and CDIC's employees. Around 80 participants attended the Seminar, including over 30 participants from countries such as Canada, Argentina, Germany, Indonesia, Malaysia, Thailand, Japan, Korea and Hong Kong. The purpose of holding this Seminar is to exchange payout experiences for failed financial institutions and to learn the reform trend of handling mechanisms, and thereby enhancing international exchanges.
In the wake the global financial crisis in 2008, many countries were unable to rapidly reimburse insured depositors after problem financial institutions were ordered to close. This prompted financial competent authorities in various countries to review and improve reimbursement systems and processes. Hence, the theme of the Seminar was set to be "Payout Operations, Mechanisms and Case Studies." The Seminar were divided to three sessions; that is, "Before bank closure," "After bank closure," and "Case studies." Issues addressed in the session of "Before bank closure" are as follows: preparation for payout data, estimation of payout cost and least cost test, arrangements of human resource, payout locations, outsourcing, payout agencies, IT systems, contingency planning, etc. In the session of "After bank closure", issues on account treatment, unsettled accounts and transaction, account audit, handling of depositors expectation and media communication, handling of depositor disputes, and handing of emergency situations, were discussed. Speakers from Malaysia and Singapore shared their experiences in payout simulations. Lastly, cases studies on various payout scenarios were shared by speakers from the United States, Hungary, Philippines and Korea.
At a time of growing emphasis on cross-border cooperation, the holding of this international training seminar by the CDIC could help participants' countries to strengthen their respective payout mechanisms. It also elevates Taiwan's professional reputation in the field of international deposit insurance and strengthens substantive international exchanges and cooperation.
The delegates shared their experiences in payout mechanisms, challenges faced, the importance of deposit insurance systems to financial stability, and other issues during the lively and fruitful discussions.