The Central Deposit Insurance Corporation (CDIC) hosted the 22nd Asia-Pacific Regional Committee (APRC) Annual Meeting and International Conference of the International Association of Deposit Insurers (IADI) on 23-26 April 2024 on the theme of Strengthening the Financial Safety Net: Addressing the Challenges of Novel Financial Crises. Mr. Alejandro López, Chair of the Executive Council of the IADI and Chief Executive Officer (CEO) of Seguro de Depósitos Sociedad Anónima (SEDESA), Argentina, along with chairmen, CEOs, and high-ranking officials of international financial institutions, such as Financial Stability Board, as well as deposit insurers from jurisdictions like Japan, Korea, Spain, Malaysia, etc., were invited as speakers to share experiences and approaches implemented in their respective jurisdictions. The international conference was attended in-person by over 100 representatives of financial supervisory bodies, international financial organizations, and peer deposit insurers from over 20 countries across Asia, Europe, America, and Africa. Representatives from Taiwan’s financial safety net members also participated in the event.
Mr. William Su, Chairman of the CDIC, delivered welcome remarks and highlighted the financial safety net members’ enhancement of the liquidity alert mechanism for banks and establishment of contingency plans in response to the 2023 banking turmoil in Europe and the U.S. He also mentioned that the supervisors in Taiwan have also required banks to strengthen monitoring of unusually large deposit withdrawals and abnormal social media information. Mr. Hidenori Mitsui, Chairperson of the APRC, acknowledged that acceleration of digitalization has prompted financial supervisory authorities to conduct adjustments to relevant policies and operational guidelines. Ms. Tsuey-Ling Hsiao, Vice Chairperson of the Financial Supervisory Commission (FSC), emphasized the FSC’s commitment to ensuring the sound operation of financial institutions and fostering a conducive financial environment to strengthen the foundation of financial development in Taiwan. She also noted the CDIC’s capacity as the resolution authority for troubled financial institutions and its efforts to mitigate insured risks. Both financial safety net members will continue collaboration for financial stability.
Mr. Alejandro López, IADI President and Chair of the Executive Council and CEO of SEDESA, gave a keynote speech outlining key insights from the IADI’s recent initiatives. He introduced the release of a report titled “The 2023 banking turmoil and deposit insurance systems”, and noted that the IADI has initiated a review of the “Core Principles for Effective Deposit Insurance Systems.”, focusing on certain areas. He emphasized that deposit insurers must prioritize effective supervisory measures, digital transformation, prompt crisis response, the utilization of available tools for failure resolution, and cooperative mechanisms within the financial safety net. He also discussed the increasing intertwining of financial systems, with emerging products like tokenized assets significantly impacting bank liquidity and deposits.
Following the above remarks, the program was divided into three sessions: (i) strengthening crisis response mechanisms, (ii) reform possibilities in supervision, resolution and deposit insurance, and (iii) the regional perspectives - the APRC deposit insurers and resolution authorities in action.
In session 1, speakers focused on topics on (i) the international resolution framework has been empirically demonstrated to be applicable to and feasible for global systemically important banks; (ii) establishment of effective public sector backstop funding mechanisms and cross-border bail-in tools along with enhancing the operational aspects of failure resolution; (iii) the importance of contingency mechanisms, communication strategies and availability of loss-absorbing instruments for supervisors.
The sharing in session 2 encompassed three areas: (i) deposit insurance mechanisms in Kazakhstan; (ii) resolution of failed non-systemic banks in Japan and a close coordination among the financial safety net members; (iii) the European integrated financial supervisory frameworks, including the single supervisory mechanism, the single resolution mechanism and the deposit guarantee schemes as well as the revised crisis management and deposit insurance framework
Speakers In session 3 discussed issues on (i) Japan’s full protection for payment and settlement accounts, changes in the deposit insurance premiums, and measures taken to prevent moral hazards; (ii) Malaysia’s harmonized coordination of supervisory measures, deposit insurance, and failure resolution to ensure smooth functioning of financial intermediation as well as plans for liquidity during the peacetime, for recovery planning and resolution planning; (iii) the Korea Deposit Insurance Corporation’s monitoring of sizable deposit outflow of high-risk savings bank through an API-based Deposit Monitoring System and utilization of web crawling technology to verify the accuracy of deposit protection disclosures by insured institutions on their websites.
Ms. Annie Cheng, President of the CDIC, stressed in the closing remarks the importance for deposit insurers to adopt Deposit Insurance Technology (DepTech) to address the rapid development of social media and digitalization. She underscored to combine the resolution mechanisms with early intervention measures to fulfill insurance responsibilities in a timely and orderly manner. In conclusion, she shared a proverb “A smooth sea never made a skillful sailor”, encouraging participants to actively addressing challenges posed by various emerging risks.

Group photo of the 22nd IADI APRC Annual Meeting

International Conference photo of Ms. Tsuey-Ling Hsiao, Vice Chairperson of the FSC
(2nd from the right), Mr. Hidenori Mitsui, Chairperson of the IADI APRC (in the middle),
Ms. Eva Hüpkes, Secretary General of the IADI (2nd from the left), Mr. William Su, Chairman
of the CDIC (1st from the right), and Ms. Annie Cheng, President of the CDIC (1st from the right)