CDIC: Three Decades of Financial Security
In 2015, the Central Deposit Insurance Corporation (CDIC Taiwan) as the sole institution implementing deposit insurance system in Taiwan is celebrating its 30th anniversary. On Apr. 20-22 the CDIC will host a series of celebratory activities and an international seminar to propagate the principles of deposit insurance system, financial stability, conformity with international norms, and the sharing of experiences in implementing the deposit insurance system. These events will include a 30th anniversary ceremony at the Taipei International Convention Center and the 2015 International Association of Deposit Insurers (IADI) Asia-Pacific Regional Committee (APRC) 13th Annual Meeting and International Conference at the Humble House Taipei.
Ever since the CDIC was established in 1985, it has shouldered the mission of “protecting the rights and interests of depositors, maintaining credit order, and promoting the healthy development of financial businesses.”In more recent years, CDIC in line with government policy has successfully withdrawn 56 problem financial institutions from the market, thereby helping to improve the structure of the domestic financial market. When the global financial crisis broke out in 2008, the CDIC conforming to government policy took the lead among Asian countries in implementing deposit blanket guarantee to reassure the public and stabilize finance. This allowed Taiwan to weather the crisis without taking on any additional financial burden to the government. Deposit services are a basic need of the public, and they must not be interrupted or insecure. The deposit insurance system protects the public's deposits in financial institutions, allowing the people to enjoy those services in safety. It may justly be termed the most important link in the financial safety net, especially given its ability to anchor social tranquility and maintain financial stability when financial incidents or international financial crises occur.
During the celebrations on Apr. 20, the CDIC will show retrospective films that help participants understand the development of Taiwan's deposit insurance system and the concrete contributions it has made to the protection of depositors' rights and interests and the maintaining of financial stability. There will also be a “Sky Lantern Prayer for Blessings” ceremony, with wishes for the development of Taiwan's financial industry written by Chairman Ming-Chung Tseng of the Financial Supervisory Commission, Chairman Hsien-Nung Kuei of the CDIC, and President Jerzy Pruski of the IADI, being carried to the heavens by the sky lanterns. The party will also be attended by representatives of international agencies that have signed memoranda of understanding or letters of exchange with the CDIC, joining in the CDIC's 30th birthday celebration.
Financial Crisis in a Borderless World: International Experts to Share Insights
Another event held in celebration of the CDIC's 30th anniversary will be a two-day 2015 IADI APRC 13th Annual Meeting and International Conference, including a half-day IADI's APRC annual meeting and a one-and-a-half-day international conference. In addition to the IADI President, the event will be attended by representatives of central banks, financial supervisors and regulators, deposit insurers, experts, and scholars from about 30 countries, along with more than 100 participants from Taiwan and overseas.
The IADI was established in Basel, Switzerland, in 2002. The current membership is 99 encompassing the deposit insurers, central banks, and financial supervisors and regulators around the world, as well as international financial organizations such as the International Monetary Fund (IMF) and Asian Development Bank (ADB). The IADI has eight regional committees and the CDIC is a founding member of the IADI and a member of its Asia Pacific Regional Committee. In 2005, the CDIC was honored with the IADI's first “Deposit Insurance Organization of the Year” award.
The importance of deposit insurance systems in stabilizing depositors' confidence and maintaining financial stability drew the attention of governments and international organizations around the world when the global financial tsunami struck in 2008, and the IADI's international position became weightier than ever. Together with such international organizations as the IMF, Financial Stability Board (FSB), and Basel Committee on Banking Supervision (BCBS), the IADI has come to be recognized as an international standard setting body.
Given the borderless financial transactions and even crisis, in line with the Taiwan government's policy of “deploying in Asia, advancing into the world,” the theme of the conference is “Cross-Border Cooperation in Resolution and Crisis Preparedness.” International experts from the United States, Canada, Japan, Korea, France, and Hungary will discuss policy measures and international development of cross-border cooperation in resolution and crisis preparedness, cases and lessons learnt, and challenges facing deposit insurers on cross-border cooperation in resolution and crisis preparedness in Asia-Pacific jurisdictions. Through face-to-face discussions, the participants will probe into the latest developments in deposit insurance systems and propose methods of improvement. These will help to assure that Taiwan will not be left out in meeting international standards and engaging in global financial cooperation.