Deposit Insurance Seminar for the Western Balkans - Basel, Switzerland, 8 - 9 December 2003.

1. IADI/EBRD
Seminar on Deposit Insurance for the Western Balkans
BIS, December 8-9, 2003
Case Study on Public Awareness - Bulgaria
Presentation by:
Ms. Roumyana Markova, Chief Expert, International Cooperation
Bulgarian Deposit Insurance Fund

2. General background
Public awareness is often overlooked in DIS design
Essential that the public knows about the benefits and
limitations of the scheme
Although costs may be considerable, the need for public
awareness should not be underestimated
FSF Working Group on Deposit Insurance
Discussion Paper on Public Awareness
D IF S e m in a r, “ R ila ” H o te l D IF S tra te g ic G o a ls a n d O b je c tiv e s
IADI/EBRDcto b e r 3 -5 ,on 0 3
B o ro v e ts, O Seminar 2 0 Deposit a n d th e In t’l C o o p e ra tio n & P R 2003t.
BIS, December 8-9, D e p
Insurance for the Western Balkans

3. BDIF public relations
Public relations policy - since BDIF establishment in 1999
– objectives and principles
Public Relations Rules - 2000
– specify terms and procedures for relationships with the media
and general public, and other BDIF communication activities
– chief spokesperson - BDIF Chairman
Organization of PR activities - in-house resources
D IF S e m in a r, “ R ila ” H o te l D IF S tra te g ic G o a ls a n d O b je c tiv e s
IADI/EBRDcto b e r 3 -5 ,on 0 3
B o ro v e ts, O Seminar 2 0 Deposit a n d th e In t’l C o o p e ra tio n & P R 2003t.
BIS, December 8-9, D e p
Insurance for the Western Balkans

4. BDIF public awareness program
during the years of operation
Objectives
– dissemination of information on DIS features & BDIF functions
– restoring confidence in the banking system
– provision of relevant practical information in two bank failures
in 1999 and 2000
Target audiences
– general public
– media
– banks and banking association
D IF S e m in a r, “ R ila ” H o te l D IF S tra te g ic G o a ls a n d O b je c tiv e s
IADI/EBRDcto b e r 3 -5 ,on 0 3
B o ro v e ts, O Seminar 2 0 Deposit a n d th e In t’l C o o p e ra tio n & P R 2003t.
BIS, December 8-9, D e p
Insurance for the Western Balkans

5. BDIF public awareness program
during the years of operation (con’d)
Communication techniques
– press releases and conferences, interviews for the media
– printed materials: Annual Report, Q & A Brochure on
deposit insurance - 2000
– hot telephone line - 2000
– provision of information to general public in BDIF offices
– provision of written responses to requests and complaints
– BDIF web site - 2001 (both in Bulgarian and English)
– discussions and seminars
D IF S e m in a r, “ R ila ” H o te l D IF S tra te g ic G o a ls a n d O b je c tiv e s
IADI/EBRDcto b e r 3 -5 ,on 0 3
B o ro v e ts, O Seminar 2 0 Deposit a n d th e In t’l C o o p e ra tio n & P R 2003t.
BIS, December 8-9, D e p
Insurance for the Western Balkans

6. Survey and opinion poll on
public awareness of DI in Bulgaria
National representative study conducted in 2002
Quantitative & qualitative assessments
Findings
– 86% of people who have savings have deposited their funds
in banks
– 24% of respondents know in general about the BDIF
– 43% of bank depositors are familiar with the DIS in place
– level of awareness of the population and depositors is low
– BDIF public image-closely related to one of the banking system
D IF S e m in a r, “ R ila ” H o te l D IF S tra te g ic G o a ls a n d O b je c tiv e s
IADI/EBRDcto b e r 3 -5 ,on 0 3
B o ro v e ts, O Seminar 2 0 Deposit a n d th e In t’l C o o p e ra tio n & P R 2003t.
BIS, December 8-9, D e p
Insurance for the Western Balkans

7. Survey and opinion poll on public
awareness of DI in Bulgaria (con’d)
Recommendations
– BDIF should enhance effectiveness in provision of
information to the general public
– efforts should target both present and potential depositors
– deeper involvement of banks’ employees in the information
process
– diversifying communication channels
– major information categories
D IF S e m in a r, “ R ila ” H o te l D IF S tra te g ic G o a ls a n d O b je c tiv e s
IADI/EBRDcto b e r 3 -5 ,on 0 3
B o ro v e ts, O Seminar 2 0 Deposit a n d th e In t’l C o o p e ra tio n & P R 2003t.
BIS, December 8-9, D e p
Insurance for the Western Balkans

8. New BDIF public awareness program
Why propose a new program
– Survey findings and recommendations
– new BDIF powers in bank bankruptcy proceedings
Objectives
– further popularization of the DIS features
– maintaining confidence in the banking system
– information on harmonization with EU legislation
– prompt and effective reaction when failures occur
– provision of information on BDIF supervisory functions
in bank bankruptcy proceedings
– enhancing BDIF image
D IF S e m in a r, “ R ila ” H o te l D IF S tra te g ic G o a ls a n d O b je c tiv e s
IADI/EBRDcto b e r 3 -5 ,on 0 3
B o ro v e ts, O Seminar 2 0 Deposit a n d th e In t’l C o o p e ra tio n & P R 2003t.
BIS, December 8-9, D e p
Insurance for the Western Balkans

9. New public awareness program (con’d)
Target audiences
– present and potential depositors (specific subgroups)
– media representatives
– banks’ operation and front-line staff; banking association
– lawmakers and public officials
– uninsured depositors and other creditors of failed banks
D IF S e m in a r, “ R ila ” H o te l D IF S tra te g ic G o a ls a n d O b je c tiv e s
IADI/EBRDcto b e r 3 -5 ,on 0 3
B o ro v e ts, O Seminar 2 0 Deposit a n d th e In t’l C o o p e ra tio n & P R 2003t.
BIS, December 8-9, D e p
Insurance for the Western Balkans

10. New public awareness program (con’d)
Communications techniques – new ones to be added
– educational radio-series on deposit insurance
– TV ads
– seminars for banks’ branch directors on DIS main features
– paid advertisements in printed media
– front-door and counter stickers
– product registers
– public awareness plan for potential future failures
– printed materials: new Q & A leaflet on bank bankruptcy
– seminar for the media on BDIF functions in bank bankruptcy
– revamp of BDIF web site
D IF S e m in a r, “ R ila ” H o te l D IF S tra te g ic G o a ls a n d O b je c tiv e s
IADI/EBRDcto b e r 3 -5 ,on 0 3
B o ro v e ts, O Seminar 2 0 Deposit a n d th e In t’l C o o p e ra tio n & P R 2003t.
BIS, December 8-9, D e p
Insurance for the Western Balkans

11. Operational Issues
Organization of activities - in-house resources
supported by consultancy advice on specific issues
Consulting of banks’ officials and banking association
Costs
Evaluation of results
D IF S e m in a r, “ R ila ” H o te l D IF S tra te g ic G o a ls a n d O b je c tiv e s
IADI/EBRDcto b e r 3 -5 ,on 0 3
B o ro v e ts, O Seminar 2 0 Deposit a n d th e In t’l C o o p e ra tio n & P R 2003t.
BIS, December 8-9, D e p
Insurance for the Western Balkans

12. Thank you for your attention
D IF S e m in a r, “ R ila ” H o te l D IF S tra te g ic G o a ls a n d O b je c tiv e s
IADI/EBRDcto b e r 3 -5 ,on 0 3
B o ro v e ts, O Seminar 2 0 Deposit a n d th e In t’l C o o p e ra tio n & P R 2003t.
BIS, December 8-9, D e p
Insurance for the Western Balkans