Core Principles for Effective Deposit Insurance Systems
Basel Committee on Banking Supervision and International Association of Deposit Insurers
The Core Principles brought forward in the document are reflective of, and designed to be adaptable to, a broad range of country circumstances, settings, and structures. These are intended as a voluntary framework for effective deposit insurance practices. National authorities are free to put in place supplementary measures that they deem necessary to achieve effective deposit insurance in their jurisdictions. Specific country circumstances should be considered in the context of existing laws and powers to fulfill the public policy objectives and mandate of the deposit insurance system.
The document considers that an assessment of a country´s compliance with the Core Principles can be a useful tool for countries that are implementing, reviewing or actively reforming their deposit insurance system. In addition, a review of the broader safety-net functions, presented as preconditions in the document, is important as these can have a direct effect on the deposit insurer´s ability to fulfill its mandate.
The document presents 18 core principles, each of which includes supporting explanations and guidance for their assessment. The effective deposit insurance system principles cover several areas, including: setting objectives, mandates and powers of the deposit insurer, governance, relationships with other safety-net participants and cross-border issues, membership and coverage, funding, public awareness, legal issues, and failure resolution. The document also includes a set of preconditions addressing mainly external elements necessary to support effective deposit insurance systems.
- Associate members
- Board of directors
- Technical Committee
- General Secretariat