The Central Deposit Insurance Corporation (CDIC) will hold the Second 2011 International Association of Deposit Insurers (IADI) Executive Training Program on November 15 to 18, 2011, at the Sheraton Taipei Hotel in Taipei. The theme of the program is "Deposit Insurance Assessments and Fund Management." About 50 experts and practitioners from 25 countries are expected to attend.
The CDIC has promoted international exchanges since its establishment in 1985. In May 2002, it joined the IADI as a founding member. It also has participated enthusiastically in exchanges with domestic and foreign deposit insurance and financial regulatory agencies, as well as established information sharing mechanisms to help to bring Taiwan's financial safety net mechanism into line with international norm and practices. The IADI is headquartered at the Bank for International Settlements. Its objectives are to contribute to the stability of financial systems by promoting international cooperation in the field of deposit insurance and to encourage contact among deposit insurers and other interested parties. IADI members include deposit insurance organizations, central banks and financial regulatory agencies, the International Monetary Fund, Asian Development Bank, and other international financial organizations. The association was founded with 35 members and has since grown to 82 members.
The ability to fully implement and establish the credibility of a deposit insurance system is determined mainly by sound funding mechanisms. And the main source of fund for reimbursement is the accrued income from deposit insurance premiums. After the global financial crisis erupted in 2008, many countries saw huge drawdowns in their deposit insurance fund, prompting the European Union, United States and other countries to review their deposit insurance funding mechanisms. Taiwan also carried out intensive research before reverting from the blanket guarantee back to a limited coverage system. On January 1, 2011, Taiwan formally adjusted deposit insurance premiums. The holding of the IADI training program on "Deposit Insurance Assessments and Fund Management" at this time is especially meaningful as it coincides with the centenary of the Republic of China and brings together elites of the financial and deposit insurance sectors from around the world for exchanges and the sharing of invaluable experience and knowledge.
The content of this training program was jointly planned by the IADI Training and Conference Committee, Federal Deposit Insurance Corporation, and CDIC. The program will discuss the adequate scale of deposit insurance funds, pricing models, and other related issues through case studies, general discussions, and other formats. Prominent speakers will share their practical experience with participants to provide a reference for deposit insurance organizations and financial regulatory agencies in future consideration of such issues. This also will be highly beneficial to creating a sound financial safety net.