BACKGROUND

The role of deposit insurance schemes to protect depositors in the case of bank failures is underpinned by establishing sound investment policies and systems of deposit insurance funds. The International Association of Deposit Insurers (IADI) Core Principles for Effective Deposit Insurance Systems, Core Principle 11 underscores the need for a deposit insurer to have appropriate funding mechanisms, enabling it to execute its mandate effectively. This may be impacted by whether the scheme is a pay box, pay box plus, risk minimiser, or cost minimiser. Taking the mandate into account, the deposit insurer must have readily available funds and all funding mechanisms necessary to ensure prompt reimbursement of depositors’ claims. In line with supporting deposit protection funds of member countries, MEFMI will host a workshop on Investment Processes for Deposit Insurance Schemes. The workshop will provide a guide in designing and implementing investment and risk management policies for deposit insurance to support adherence to IADI Core Principle 11. The workshop will also explore current developments such as sustainable investing and climate risks and their impact on the investment framework for deposit insurance schemes.

OBJECTIVES
To enable participants to design and implement investment and risk management policies and processes that enable adherence with IADI Core Principle 11. It will also provide a platform for participants to explore risks and emerging issues in the global investment landscape.

CONTENT
The course will cover the following areas:
1. Unpacking IADI Core Principle 11 on funding of Deposit Insurance Systems;
2. The investment objectives of deposit insurance funds;
3. Emerging themes for deposit insurance investors; and
4. Analysing the domestic return and risks in domestic markets for the deposit insurer.

TARGET GROUP
This course targets middle to senior-level officials from Deposit Insurers, Central Banks and Ministries of Finance, investment management and risk management