PIDM Sharpens Crisis-readiness Drive To Protect Depositors Under 2026-2028 Plan
By Danni Haizal Danial Donald
KUALA LUMPUR, Sept 21 (Bernama) -- Perbadanan Insurans Deposit Malaysia (PIDM) is sharpening its crisis-readiness agenda under the PIDM Corporate Plan 2026-2028, with a stronger focus on resolution resilience, digital safeguards and continued protection for depositors and policy owners when a member institution runs into difficulty.
Chief executive officer Afiza Abdullah said PIDM is anchoring its work in its role as Malaysia’s financial consumer protection authority by strengthening the way it prepares for, coordinates and executes resolution actions in times of stress.
“When a financial institution fails, speed, clarity and confidence matter. Our work is about making sure that if such a situation arises, the system is ready, the authorities are coordinated and the public remains protected,” she told Bernama.
Afiza said one area where PIDM aims to take a leadership role is Islamic resolution, noting that while conventional resolution frameworks are already established internationally, a comparable global framework for Islamic financial institutions has yet to be fully developed.
“We aspire to play a leading role in advancing Islamic resolution globally. Our aim is to support the orderly resolution of Islamic financial institutions while preserving Shariah principles as fully as possible, as we pursue financial stability and maintain confidence among depositors and stakeholders,” she said.
Beyond policy development, PIDM is also stress-testing its own readiness through regular simulation exercises involving member institution failure scenarios and coordination among relevant authorities.
Afiza said these exercises are designed to ensure that PIDM can act decisively and effectively when needed, particularly in situations where public confidence must be maintained.
“Technology resilience is another core priority under the plan, as PIDM seeks to strengthen its responses not only against cyber threats but also against risks arising from emerging technologies that could affect its systems, operations and critical processes.
“As new technologies reshape the financial landscape, we must continue to understand, adapt to and manage the risks that come with them. This is essential to ensuring that our systems and operations remain secure, reliable and resilient,” Afiza said.
She said another major priority would be the roll-out of the Resolvability Assessment Framework (RAF), which will give member institutions clearer expectations on the capabilities, systems and arrangements needed to support an orderly resolution.
“With RAF, we will strengthen preparedness among member institutions and enhance collective resilience across the financial system, enabling PIDM to protect deposits and insurance and takaful benefits more effectively, minimise impact and preserve financial stability,” she added.
Established in 2005, PIDM administers Malaysia’s Deposit Insurance System, which protects depositors up to RM250,000 per depositor per member bank.
It also administers the Takaful and Insurance Benefits Protection System, covering eligible takaful certificate holders and insurance policy owners.
PIDM currently has 45 member banks, including five digital banks, and 48 insurer members, including insurance companies and takaful operators.
-- BERNAMA