To further the international cooperation between the Central Deposit Insurance Corporation of Taiwan (CDIC) and the Deposit Insurance Agency of Thailand (DPA), the two organizations confirmed the renewal of their Memorandum of Understanding (MOU) on 2 August 2018 in Bangkok, Thailand. In spite of the different regulatory environments, the exchange of professional dialogues and experiences between CDIC and DPA are valuable for enhancing the deposit insurance systems in Taiwan and in Thailand, which is worth continuing.
Formal inter-institutional cooperation of CDIC of Taiwan and DPA of Thailand started in 2012 when the MOU was first signed in Taipei, Taiwan. Leaders of the two organizations today reviewed relevant topics of domestic and international banking and regulatory landscape, as well as the underlying challenges facing deposit insurers. Focuses of today's exchange meeting include promoting the effectiveness of the deposit insurance payout systems and public awareness of deposit insurance systems.
Being a risk minimizer, CDIC has been working on upgrading its risk management mechanism, said President Michael Lin of CDIC. CDIC modified its risk-based premium rating system by incorporating the most current risk indicators, including cyber security and strengthening its monitoring of financial institutions' risk exposure on assets overseas and financial derivative products. It also continues enhancing its bank resolution mechanisms by setting criteria of identifying domestic systemic important banks and deliberating the plan to introduce Recovery and Resolution Planning together with its competent authority and improving its payout system to comply with the IADI Core Principles. Learning from DPA's practical experiences is also valuable to CDIC. Mr. Lin confirmed that the MOU between the two organizations would help both sides to advance the respective deposit insurance systems.
As a paybox-plus, DPA has been working to minimize the amount of time required in reimbursing depositors. Recently, the deposit insurance legislation was overhauled to reduce depositor inconvenience in the event of a payout. Depositors will now receive their insured deposits in no longer than 30 days, and they are also no longer required to submit reimbursement claims. Rules and regulations to accommodate these new practices have been issued, and the focus now resides on the implementation of appropriate IT systems to support these processes. DPA is also in the process of revamping its corporate communications strategy to incorporate newer communication modes to adapt to fast-changing consumer trends. At the exchange meeting, Mr. Satorn Topothai, President of DPA, also echoed Mr. Lin on the value of international cooperation that the two organizations can learn from each other's lessons and shorten the learning curve in implementing new deposit insurance mechanisms.