News September 2023

On 4 and 5 September, FITD representatives participated to the IADI ERC EFDI Joint Conference on “Redefining the Financial Safety Net: Tackling New Challenges and Shaping the Future of Deposit Insurance” hosted by the Association of German Banks (BdB) in Berlin. FITD, as promoter and co-organizer, contributed actively to the organization of the events together with the IADI Secretariat and BdB representatives. Alfredo Pallini (FITD Director General), as ERC Chair, gave its opening and concluding remarks emphasizing the importance of the event in the context of the recent banking turmoil and the Bank crisis management and deposit insurance framework (CMDI) legislative review. Gianluca Grasso (Head of Risk Analysis and Interventions Management, FITD) presented FITD experience in banking crisis interventions as part of Session 2 of the Workshop on “The European Crisis Management and Deposit Guarantee Framework (CMDI) Legislative Package”. The presentation stimulated an interesting discussion on different intervention practices and on the CMDI which is currently a cornerstone of the international debate. The session was moderated by Riccardo De Lisa (FITD Advisor).

A delegation from FITD participated in the meetings of 3 EFDI Working Groups in which FITD actively collaborates: the Banking Union Working Group, the Cross Border Working Group, and the D3 Working Group.
The Depositor Guarantee Fund of Cooperative Credit Banks welcomed members of the 3 working groups from many European countries at its headquarters in Rome, and multiple issues related to the collaboration of deposit guarantee funds in both stable and crisis situations were discussed. In addition, the revision of the Directive on Deposit Guarantee Schemes in the context of the CMDI framework was addressed.

A FITD delegation led by Director General, Alfredo Pallini - IADI Vice President and Chair of the Europe Regional Committee (ERC) - attended the IADI event in Boston hosted by the local deposit guarantee scheme: Massachusetts Credit Union Share Insurance Corporation (MSIC).

In this context, IADI's role as a global standard-setter was also strengthened in the light of the recent U.S. and Swiss banking crises. In particular:

• Statutory amendments have been approved to expand IADI's role as a global standard-setter and recognize the important role of deposit guarantee schemes in contributing to financial stability as important member of the financial safety net.

• A report on the implications of the recent banking crises on deposit guarantee schemes will be published by the end of the year, also as a basis for the revision of the IADI Core Principles for Effective Deposit Insurance Systems scheduled for 2024.

Read more in the attached IADI press release.

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