depending on the situation, notify the relevant authorities to urge these institutions tomake
improvement to reduce insurance risk; and to produce indicators related to examination rating
results to determine the risk-based premiums applicable to individual insured institutions and
help tourge insured institutions to improveoperations.
B. Establishing anAccount Officer System
The CDIC began to establish an account officer system in the second half of 1998. Under
the system, all insured institutions are divided into special guidance areas according to
their administrative district or nature. Specialists are assigned to track and provide input on
assessments and inspections, attend the meetings of insured institutions, duly offer opinions
on improving business deficiencies, and summon persons in charge of insured institutions with
abnormal operations. They alsomaintain contact with the related financial supervisory agencies,
coordinate with the supervisory measures of the competent authority, and track the status of
improvementsby insured institutions toeffectively control theCDIC’s insurance riskandpromptly
deal with insured institutions.
C. Establishing a Mechanism for Internet Transmissions between Financial Institutions and the
CDIC
In order to strengthen off-site monitoringmechanisms, the CDIC began in 1998 to establish
an operating system for the internet transmissions between financial institutions and the CDIC.
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ReviewandOutlook
