Deposit insurance
Malaysia
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Automatic
Protection for your deposits, takaful
and insurance benefits!PIDM now protects your deposits in
the bank as well as your takaful and insurance benefits in
the unlikely event of a failure of a member bank or a
takaful operator / insurance company. To get more details on
these two separate protection schemes, click on the button
below:
Deposit insurance is a system established by the Government
to protect depositors against the loss of their insured
deposits placed with member institutions in the event the
member institution fails. Commercial and Islamic banks that
are member institutions of PIDM are also referred to as
‘member banks’.
As an integral component of an effective financial safety
net, a deposit insurance system enhances consumer protection
by providing explicit protection to depositors. Depositors
will know when, how much and how their deposits are insured
in the event that a member institution fails or is unable to
make payment to depositors.
In Malaysia, the deposit insurance system was brought into
effect in September 2005 and is administerd by Perbadanan
Insurans Deposit Malaysia (PIDM).
Benefits to depositors
•PIDM protects your bank deposits and will promptly
reimburse you on your insured deposits should a member bank
fail
•The protection is provided by PIDM automatically and no
application is required
•There is no charge to depositors for this protection
Benefits to the financial system
•PIDM promotes public confidence in Malaysia’s financial
system by protecting depositors against the loss of their
deposits
•PIDM reinforces and complements the existing regulatory and
supervisory framework by providing incentives for sound risk
management in the financial system
•PIDM minimises costs to the financial system by finding
least cost solutions to resolve failing member institutions
•PIDM contributes to the stability of the financial system
by dealing with member institution failures expeditiously
and reimbursing depositors as soon as possible
Deposit insurance is recognised internationally as an
important form of consumer protection and has been
implemented in over 100 countries around the world, with the
earliest system dating back to 1930s.
http://www.pidm.gov.my/About-Deposit-Insurance/What-Is-Deposit-Insurance-.aspx |
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