Reaffirmed cooperation between IADI members

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 underlined that in the course of turmoil in financial systems globally close professional cooperation even in the case of two geographically distant schemes like CDIC and NDIF had been appreciating. Mentioning an example for current challenges, he stressed that temporary blanket guarantee was introduced at the end of 2008, from which the smooth return to the limited deposit insurance system is a real challenge in both countries. An overview of cooperative activities during the term of MOU was also 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. Chen 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. Chen 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 signing parties have re-confirmed that the MOU has served its original objects well.

Mr. Chen was also received by Mr. Csaba Varga, Director General of the Hungarian Financial Supervisory Authority.

3rd MOU-Partners’ Meeting