The IADI-Africa Region Annual Conference The Benefits of Deposit Insurance in Africa Design Features of Effective Deposit Insurance System. Kevin Chew Senior Manager, MDIC Tanzania, 24 July 2010 . Four Common Essential Elements of Effective Deposit Insurance Systems.
The IADI-Africa Region Annual ConferenceThe Benefits of Deposit Insurance in AfricaDesign Features of Effective Deposit Insurance System
Senior Manager, MDIC
Tanzania, 24 July 2010
More credible in eyes of general public
Seen as good practice
Minimises likelihood of regulatory forbearance
Minimises likelihood of regulatory capture
Gives policy decisions greater legitimacy
Can undertake financial stability functions quickly that allow for more rapid and effective response to crisis situation
Refers to process of informing the public on how the organisation is being governed and managed, what it planned to achieve, and whether goals were achieved.
Enable interested parties to assess performance and determine whether we achieved our core objective.
4 common elements - clear mandate. independence, transparency and accountability
At MDIC, these elements underpin MDIC progress in gaining public confidence.
Official endorsement of its ability and effectiveness, MDIC mandate extended to cover insurance industry.