IADI was founded on May 8, 2002 in an effort to promote guidance and international collaboration, and enhance the efficiency of deposit insurance. The SDIF is among the founding members of the IADI currently with 83 members in total. In addition, the SDIF contributes to the top strategic efforts of the IADI as a member of the Executive Board.
In June 2009, the IADI drew up and released the Core Principles for Effective Deposit Insurance Systems (IADI Core Principles) composed of 18 principles as a result of the joint efforts exerted in cooperation with the Basel Committee on Banking Supervision (BCBS) in an effort to guide countries intending to establish a deposit insurance system or amend the one in force, and set globally-acknowledged core principles for deposit insurance.
In cooperation with the IMF, the World Bank, the European Commission and the EFDI in December 2010, the IADI and the BCBS released Core Principles for Effective Deposit Insurance Systems - A methodology for Compliance Assessment (IADI Assessment Methodology) for how to assess compliance with core principles established for the effective deposit insurance. In April, 2011, the IADI Core Principles were incorporated into the Compendium of Standards released by the Financial Stability Board (FSB).
However, a need arose to update the IADI Core Principles and the IADI Assessment Methodology in line with requirements and new financial regulations caused by the global crisis. New definitions and powers in resolution introduced by the Key Attributes of Effective Resolution Regimes for Financial Institutions (FSB Key Attributes) released by the FSB in October, 2011 obligated to offer an update in enhancing preparedness for a crisis, new rules for funding, the roles and importance of deposit insurance institutions in crisis management and bank resolution.
Led by the Management Committee established by the IADI in February 2013, and composed of representatives of the IADI, BCBS, the European Commission, EFDI, FSB, IMF and the World Bank, the joint working group finalized the efforts of updating and released the revised Core Principles on November 21, 2014. The revision reduced the number of principles from 18 to 16, and integrated the IADI Core Principles with the FSB Key Attributes thanks to amendments introduced to expedite the insured deposit refund procedure, and the role and the powers of deposit insurers in crisis preparedness, crisis management and resolution particularly for coverage and funding.
In addition, the IADI Core Principles and the Assessment Methodology were combined into one single text, and submitted to the FSB to enter into force upon the resolution of the IADI Executive Board on October 21, 2014. In addition to this text, efforts to update the IADI’s current Manual on Assessment of Compliance with Core Principles continued.
The work was completed in 2016.
It is of importance to enhance the SDIF’s level of compliance with the IADI Core Principles as an effective deposit insurance institution performing services in line with international standards. In this context, the SDIF sustains efforts to improve the current regulations and systems in line with the recommendations set forth in the Assessment Report prepared after the Regional Workshop on the Assessment of Compliance with the Core Principles for Effective Deposit Insurance Systems hosted by the SDIF on May 6-9, 2013.