adminThe International Association of Deposit Insurers (IADI) Core Principle number four (4) talks about the relationship between the deposit insurer and other financial safety net players.
The Core Principle states that, in order to protect depositors and contribute to financial stability, there should be a formal and comprehensive framework in place for the close coordination of activities and information sharing, on an ongoing basis, between the deposit insurer and other financial safety-net participants.
In most jurisdictions, ongoing information sharing and co-ordination of actions is explicit and formalised through legislation, regulation, memoranda of understanding and legal agreements.
Rules regarding confidentiality of information apply to all safety-net participants and the exchange of information among them.
Confidentiality of information is protected by law or through agreements so as not to prevent information sharing within the safety net.
Safety-net participants exchange information on an ongoing basis, and in particular, when material supervisory actions are being taken in respect of member banks.
In situations where there are multiple deposit insurers operating in the same national jurisdiction, appropriate information sharing and co-ordination arrangements among those deposit insurers are in place.
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