2nd MOU-PARTNERS` MEETING

With signing a Memorandum of Understanding on 24 June 2005, the two founding members of the International Association of Deposit Insurers (IADI) envisaged a regular consultation process about the enhancement of their deposit insurance systems and exchange of knowledge in general.

The Central Deposit Insurance Corporation is considered to be one of the most experienced institutions in strengthening the mechanism for risk control and resolution of problem banks globally.

Dr. Peter Szekacs, Managing Director and his deputy Dr. Andras Fekete-Gyor of NDIF received the delegation.

Mr. Szekacs appraised the benefits of close professional cooperation even in the case of two geographically distant schemes like CDIC and NDIF. An overview of cooperative activities during the term of MOU was conducted, mentioning the regular exchange of information and views, the joint research activities as well as the cooperation in IADI in different international issues that go beyond the bilateral cooperation and make the ties between the two institutions so close.

Mr. Wang emphasized, that it is very significant for CDIC that the first such agreement with a European member of IADI had been established with NDIF, which of the achievements and several initiatives are well recognized among deposit insurers worldwide. Mr. Wang gave a presentation on the recent developments in Taiwan’s banking sector and major strategic thrusts of CDIC for the upcoming years. He also stressed, mandate and power alignment of a deposit insurance system and good inter-relationship mechanism among the safety-net participants are imperative for a well functioning and sound financial system in every country.

The Memorandum of Understanding is expiring this year. Taking the opportunity of the current high level visit, the signing parties have confirmed their interest in extension of the MOU as it has served its original objects well.

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