The Basel Committee on Banking Supervision and the International Association of Deposit Insurers (IADI) issued the final version of a set of principles to guide countries’ deposit insurance systems.

The principles, which were developed by a joint working group between the Basel Committee and IADI, address a range of issues including deposit insurance coverage, funding and reimbursement. They also focus on issues related to public awareness, resolution of failed institutions and cooperation with other institutions, such as central banks and banking supervisors. A draft of these principles was released in March, and today the groups issued their final version.

“The core principles issued today respond to one of the lessons of the financial crisis: the need for effective deposit insurance guidelines to help maintain public confidence. They set an important benchmark for countries to use in establishing or reforming deposit insurance systems,” said Martin Gruenberg, president of IADI and member of the Basel Committee.

IE