The International Association of Deposit Insurers (IADI) held its 14th Annual Conference 28-29 October 2015 in Kuala Lumpur, Malaysia. The conference, titled “Crisis Preparedness – Institutional Arrangements and Coordination, Crisis Communication & Contingency Planning,” attracted 380 participants representing a global audience of 64 jurisdictions. The Malaysia Deposit Insurance Corporation (MDIC), which recently commemorated its 10-year anniversary, hosted the event.
In welcoming remarks, MDIC Chairman Dr. Abdul Samad stressed that the repercussions of the 2008 crisis continue to reverberate despite concerted policy efforts to restore the global economy towards a sustainable growth trajectory. Given the potentially enormous cost of another crisis, being prepared for unanticipated episodes is vital in an increasingly uncertain environment, Samad said.
Elaborating on this theme, Jerzy Pruski, former IADI President and Chair of the Executive Council and President of the Bank Guarantee Fund, Poland, remarked that in an environment of many, diverse strains that affect the financial architecture, the deposit insurance community has been expanding its contribution to financial stability.
Other conference speakers stressed that the potential vulnerabilities and spillovers both in the advanced economies and the emerging markets should not be seen as independent events, but rather as part of a connected sequence of financial disturbances that have hurt the global economic and financial system over the past decade. Recognising that crisis is inherent in a capitalistic system, the focus then shifted to how spillovers can be contained and disruptions minimised.
In her opening address, Deputy Governor Nor Shamsiah of the Central Bank of Malaysia noted that although policy reforms will better prepare us to manage crises, policymakers need to consider other less-discussed aspects of crisis preparedness, such as humility, agility, and the building of trust in good times.
Offering a perspective on lessons learned from the most recent crisis, Sheila Bair, former Chairman of the Federal Deposit Insurance Corporation, said that banks will always try to arbitrage regulation and that regulation without market discipline will fail.
Christine Cumming, former First Vice President of the Federal Reserve Bank of New York, emphasized that historical experience suggests that the earlier problems are identified and proactive actions are taken, the better.
Your email address will not be published. Required fields are marked *
Equities lead the charge for wealth creation: Karvy’s India Wealth Report 2017
SONY MUSIC AND ESTATE OF MICHAEL JACKSON RENEW THEIR LANDMARK DEAL
Tata Steel Joda East Iron Mine bestowed with the Golden Peacock Innovation Management Award 2017
Tata Motors’ Jamshedpur Plant bags National Energy Conservation Award, 2017
Shalby Limited listing ceremony
2014 The Global Indian New Network (TGINN)