From April 23rd to the 26th, IPAB hosted the Third Americas Deposit Insurance Forum.
This year the Instituto para la Protección al Ahorro Bancario hosted the Third Americas Deposit Insurance Forum; an event jointly organized by the Regional Committees of the International Association of Deposit Insurers (IADI) which represent the deposit insurance organizations from Latin America, North America and the Caribbean, respectively.
The Forum was divided in four sessions under an encompassing topic of “Bank Resolution and Crisis Management: Beyond the Core Principles”; these were:
1. Funding for deposit insurance and resolution
2. Information requirements for deposit insurers in resolution.
3. Resolution Planning: Guidance on developing resolution strategies
4. Tools to assist in the resolution of troubled banks.
In addition to the presentations by the authorities of more than 18 jurisdictions, the forum incorporated a round table format, which encouraged an open discussion and fostered teamwork among the participants, aimed at exchanging experiences, which will, eventually, enrich the work of those deposit insurers present, based on international best practices.
Among those attending, it is worth mentioning Mr. Katsunori Mikuniya, Governor of the Deposit Insurance Corporation of Japan and President of IADI, and Mr. David Walker, Secretary General of the Association.
Additionally, the Forum welcomed Michèle Bourque, President of IADI's North America Regional Committee, Alejandro López, President of IADI's Latin America Regional Committee, and Antoinette Mckain, representing Noel Nunes, President of the Association's Caribbean Regional Committee.
The event provided the proper backdrop for carrying out the meetings of the Regional Committee of North America and of the Latin America Regional Committee, and the signing ceremony of the Memorandum of Understanding between Uruguay's Corporación de Protección del Ahorro Bancario (COPAB) and Colombia's Fondo de Garantías de Instituciones Financieras (Fogafín).
During the working sessions, several relevant topics were identified, which led to fruitful conclusions for all participants, such as:
• Financial crises affect all jurisdictions; thus it is imperative to carry out simulation exercises, in order to have a resilient system which can withstand these crises with the best possible outcome.
• Communication among the different authorities is currently gaining greater importance, particularly at this moment, when the use of new technological means shortens the distances and hastens the timeframes.
• It is quite useful to get in contact with similar organizations from different jurisdictions, in order to exchange experiences.
• Collaboration agreements expand the range of influence and creates synergies, which allows the deposit insurer to keep up-to-date on the best practices in this matter.
• Feedback on the success stories of other organizations in the financial sector provides the deposit insurer with the possibility of acting in a more assertive manner.
• Performing evaluations after a resolution process has concluded and publicizing the results among those affected strengthens confidence in the financial system.
• It is noteworthy that, given the growing use of new technologies, the deposit insurance scheme will have to be reframed, in order to adapt to the changing environment.
• The deposit insurer must be involved, as an active participant, throughout the resolution process, with the aim of achieving the least possible cost for the process, among other important factors.
Upon the conclusion of the activities of the Third Forum, IPAB’s Executive Secretary, Raúl Castro, encouraged the participants to maintain open the communication channels, in order to continue the exchange of experiences on the matter, pointing out that, the best possible way to face new problems and solve these is for a deposit insurer to keep up to date on the best practices. Once Mr. Castro thanked the attendees for their active participation and praised IPAB’s team for the outstanding efforts they invested in organizing the event, he declared the closing of a very successful Forum.