Perbadanan Insurans Deposit Malaysia (PIDM) hosted its second National Resolution Symposium (NRS) this week, gathering nearly 450 participants, including senior leaders from Malaysia’s financial institutions. The symposium aimed to continue discussions on managing and resolving financial institution failures amidst uncertainties.
This year’s theme, “Building Collaborative Resolvability: From Policy to Practice,” focused on the practical implementation of crisis preparedness. Stakeholders, including financial safety net players, financial institutions, Shariah scholars, and the media, were encouraged to collaborate to ensure the orderly resolution of member institutions in case of failure.
“At PIDM, we see crisis preparedness as an ongoing business, not just a response to emergencies. Resolution planning, done in advance, can build capabilities during good times to support effective resolution of member institutions and enhance their resilience,” said Rafiz Azuan Abdullah, Chief Executive Officer of PIDM.
Rafiz also noted that the NRS reinforces PIDM’s commitment to ensuring that member institutions are prepared for both current and future challenges, highlighting the importance of collaboration and the exchange of insights for maintaining financial system stability.
Last year, PIDM issued resolution planning requirements to its member banks, which will be implemented in phases alongside Bank Negara Malaysia’s recovery planning. This initiative is guided by the principle of proportionality, depending on the size and complexity of each bank.
PIDM, acting as the resolution authority for its member institutions, collaborates with BNM to develop policy frameworks for Recovery and Resolution Planning (RRP). Recovery planning ensures that banks can effectively respond to financial distress, while resolution planning guarantees that banks can be resolved promptly and orderly without causing major disruptions.
The symposium included panel sessions, masterclasses, and roundtable discussions featuring stakeholders from the banking and insurance sectors. Dato Sri (Dr) Zukri Samat, Chairman of PIDM, delivered the welcoming address, and Dato’ Seri Abdul Rasheed Ghaffour, Governor of Bank Negara Malaysia, provided the keynote speech.
As part of its ongoing efforts to promote resolution planning, PIDM has published 25 global case studies related to bank and insurance company resolutions. A downloadable e-book is also available to the public on PIDM’s website, offering further insights into its role as a resolution authority.
