OREANDA-NEWS. The International Association of Deposit Insurers (IADI) has completed a research project on studying international experience in the area of identification of risks that threaten sustainability of depository institutions and effective addressing such risks. The General Guidance on Early Detection and Timely Intervention for Deposit Insurance Systems was developed by the special subcommittee established by IADI that was co-chaired by representatives of the Russian State corporation “Deposit Insurance Agency” (DIA) and La Corporacion de Proteccion del Ahorro Bancario (COPAB) from Uruguay. The document has been approved by the IADI Executive Council and placed on the IADI web site.

The guidance contains a set of recommendations to deposit insurers that are aimed at increasing effectiveness of their operation as well as improving collaboration among financial safety net participants especially in situations that can pose threat to the banking system stability.

The document analyses the recent international initiatives that are intended to improve effectiveness of banking supervision and arrangements for imposing corrective actions against problem banks as well as enhance the role and powers of deposit insurers applicable in relation to depository institutions that pose heightened risks on the deposit insurance system.

The paper highlights importance for any deposit insurer to have in place effective mechanisms for early detection of problem depository institutions as well as timely access to relevant and comprehensive information about their financial position and performance, as it allows the deposit insurer to ensure its readiness to promptly reimburse insured depositors and/or implement applicable resolution measures in relation to failing banks.