Chapter 2.ppt of macroeconomics by mankiw 9th edition
Structure and Organisation
1. STRUCTURE & ORGANIZATION
Presentation by:
Ms. Roumyana Markova
Chief Expert, International Cooperation
Deposit Insurance Fund (Bulgaria)
Thursday, January 30, 2003
www.iadi.org
2. Purpose of this Presentation
1) Identify the relevant structural and organizational issues
for deposit insurance systems.
2) Examine the advantages, disadvantages, and trade-offs
associated with various approaches.
3) Make some suggestions on the appropriate form of
guidance with respect to these issues.
www.iadi.org
3. I. Mandates, roles and responsibilities
Setting of mandates, roles and responsibilities influenced by
many factors.
Linkages between mandates and its public policy objectives
and country circumstances need to be consistent.
www.iadi.org
4. Mandates…(con’t)
The more mandates are defined (in law or private contract)
the better.
In order to meet its mandate and discharge its
responsibilities an insurer should have access to requisite
information on its members.
Changing conditions require periodic reviews for mandates.
www.iadi.org
5. II. Governance arrangements
Many forms of governance available:
- separate legal entity
- predominantly private or public forms of
governance
- each choice has advantages/disadvantages and is
influenced by choice of mandates, country resources,
etc...
www.iadi.org
6. Governance (con’t)
Composition of governing body: issues to consider:
- Should include officials who have authority to make
decisions and meet “fit-and-proper” tests.
- Include views of other safety-net players.
- Predominantly privately-administered schemes often
include industry representatives. Public schemes can
include input from special advisory bodies.
www.iadi.org
7. Governance (con’t)
Setting out duties and responsibilities:
- Select, oversee and review management.
- Ensure effective operational control and risk
management processes.
- Authority to remove officers, deal with
confidentiality, conflict of interest and other ethical
issues.
www.iadi.org
8. Governance (con’t)
Other governance issues:
Internal control
Accountability
www.iadi.org
9. Governance (con’t)
Transparency and disclosure:
- Information on the DIS should be made available to
and understood by relevant stakeholders.
- Need to balance the benefits of disclosure with the
need to maintain confidentiality.
www.iadi.org
10. III. Human resource issues
Key issues include:
- dedicated employees vs. outsourcing
- compensation and benefits
- succession planning, training and development
- collaborative training and exchanges
www.iadi.org
11. Human resources (con’t)
- Information sharing and confidentiality provisions
for employees.
- Some systems hold employees personally liable for
actions taken on behalf of their organizations.
- FSF Study Group recognized the importance of
statutory indemnification and employee protection.
www.iadi.org
12. Conclusions
1) Mandates, roles & responsibilities vary widely
among DIS. What is critical is that the
mandates be defined and that there be
consistency between public-policy objectives
and mandates.
2) In order to discharge mandates, a DIS needs
timely access to requisite information.
www.iadi.org
13. Conclusions (con’t)
3) Governance arrangements:
- Composition should include those who are fit and
proper and free from conflicts of interest.
- Sound risk management, good internal control and
transparency and accountability are important.
4) Human resources:
- Attracting and retaining skilled employees is a key
challenge. It is important to provide employees with
legal protection from indemnification for their actions.
www.iadi.org
14. STRUCTURE & ORGANIZATION
Presentation by:
Ms. Roumyana Markova
Chief Expert, International Cooperation
Deposit Insurance Fund (Bulgaria)
Thursday, January 30, 2003
www.iadi.org