Mission, Vision and Work Plans INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS Mission, Vision and Work Plans Thank you Mr. Chairman. It is my pleasure to say a few words about the International Association of Deposit Insurers, our Mission, Vision and Work Plans. Presentation by: John Raymond LaBrosse Secretary General International Association of Deposit Insurers IADI & EBRD Deposit Insurance Seminar for Central Asia & Mongolia January 29, 2003 www.iadi.org

An International Voice for Deposit Insurers Objectives INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS An International Voice for Deposit Insurers Objectives IADI is the International Voice of Deposit Insurers. The Head Office of IADI is located here in the Bank for International Settlements. The Secretariat is located in the Bank for International Settlements in Basel; I am the Secretary General and Kim Utnegaard is the Office Manager. Locating the IADI in the BIS is important as it ties the Association into a very important network of contacts in the financial world. IADI is a non-profit organization constituted under Swiss Law. It is funded through fees collected from Participants and revenues derived from its activities. The Objects of IADI are to contribute to the stability of financial systems by promoting international cooperation in the field of deposit insurance. In carrying out its objects the IADI enhance the understanding of common interests and issues related to deposit insurance; set out guidance to enhance the effectiveness of deposit insurance systems and the guidance will take into account different country circumstances, settings and structures; facilitate the sharing and exchange of expertise on deposit insurance issues through training, development and educational programs and provide advice on the establishment or enhancement of effective deposit insurance systems; and undertake research on deposit insurance issues. www.iadi.org

Organization INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS General Meeting Executive Council Secretariat The Statutes are the governing instrument of the IADI. They set out the roles and responsibilities of the General Meeting of the Members, the Executive Council and the Secretariat. Let me now spend a few minutes on each of them. The supreme authority is the General Meeting. All participants are entitled to send representatives to the General and Extraordinary meetings of the Association. On the occasion of the Annual General Meeting the Association usually holds a conference on topical deposit insurance issues and the first Conference was held in May 2002 and the second one was hosted by the Korea Deposit Insurance Corporation this past October 2003. The Chair, who acts as the President of the Association, the Treasurer and the other members of the Executive Council are elected by the Members at the Annual General Meeting for specific terms. The Executive Council is responsible for the sound functioning of the Association. The individuals are elected and serve in a personal capacity. www.iadi.org

Participants Members Partners INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS Participants Members Associates Observers Partners There are three kinds of Participants in IADI; Members, Associates and Observers.. Fees are set by the Members at the Annual General Meeting and Members are required to make an initial fund contribution which is payable over two years. The Statutes also provide for Partners and this Seminar is an example of the kind of partnering that we like to do in meeting our respective mandates. Partners are not required to pay fees and they are involved in the activities of the Association in a manner determined by the Executive Council. www.iadi.org

Members INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS Global Representation Pay Box to Loss Minimizers Well Established to New Systems Members are entities that, under law or agreements, provide deposit insurance, depositor protection or deposit guarantee arrangements as set out in Article 5 of the Statutes. Each member designates an individual who will act as its designated representative. There are 33 members in IADI representing a wide variety of deposit insurance systems. A number of deposit insurance systems have been in existence for several decades and they have a wealth of experience that has been derived from practitioner-focused lessons learned. Members fees are US$10,000 annually and they are required to contribute an initial fund contribution of $10,000 payable over two years. They have the right to vote at meetings and hold office.   www.iadi.org

Associates INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS Part of the financial safety net Entities that are considering setting up a deposit insurance system Associates are entities that do not fulfill all the criteria of Members, but who are considering the establishment of a deposit insurance system or other entities that are part of a financial safety net and have a direct interest in the effectiveness of a deposit insurance system. We have 9 Associates in the IADI.   The annual fee is US$7,500. Associates have no vote, may not hold office but may participate in the activities of the IADI in a manner determined by the Executive Council. www.iadi.org

Other interested parties INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS Observers Other interested parties Observers are other interested parties such as international organizations, financial institutions or professional firms. There are 4 Observers at the moment.   The annual fee is US$5,000. Observers have no vote, may not hold office but may participate in the activities of the IADI in a manner determined by the Executive Council. www.iadi.org

International Financial Institutions and Other Organizations INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS Partners International Financial Institutions and Other Organizations Partners can be organizations like The Toronto Centre, EBRD, IMF, The European Forum of Deposit Insurers, etc. There are no fees for Partners. www.iadi.org

Organization Executive Council INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS Organization Executive Council Let me now turn to the Executive Council. As I mentioned before, the Executive Council governs the business and affairs of the IADI. Mr. Jean Pierre Sabourin was elected as the Chair of the Executive Council and President of the Association. Mr. Charles Cornut, President du Directoire du Fonds de Garantie des Dépôts (France) was elected Treasurer and 19 other members were elected as members of the Executive Council. www.iadi.org

Standing Committees FIVE STANDING COMMITTEES Training & Conference Research & Guidance Membership & Communication Finance & Planning Governance Audit The Executive Council is composed of 21 enthusiastic representatives of deposit insurers from around the world. IADI has six standing committees to further the objects of the Association. Let me say a few words about them. The Training and Conference Committee is chaired by Mr. András Fekete-Gyor of the National Deposit Insurance Fund (Hungary). The Committee’s mandate is to assess the needs of the Members, leverage the resources of the Participants and work with the Partners and other interested parties on training and developments matters. One of the first tasks of this committee was to undertake the preparations for the Second Annual IADI Conference that was hosted by the Korea Deposit Insurance Corporation in October 2003.   Leading the Research and Guidance Committee is Mr. George Hanc of the Federal Deposit Insurance Corporation (USA). This Committee is doing research on guidance to enhance the effectiveness of deposit insurance systems that will take into account different circumstances, settings and structures. One of the first tasks of this committee will be to develop and recommend a process for developing and setting out guidance to enhance deposit insurance systems. www.iadi.org

The Membership and Communications Committee is headed by Mr The Membership and Communications Committee is headed by Mr. Oscar Perez of El Salvador. The Membership and Communications Committee is the main focal point for communication matters for IADI and the members of this Committee will consider and make recommendations concerning the admission of Members, Associates and Observers.   Mr. Charles Cornut, the Treasurer of IADI, will oversee the financial affairs of the association. He chairs the Finance and Planning Committee which monitors and strategically levers the resources available to the Association. Mr. Sabourin chairs the Governance Committee. This Committee is composed of the chairs of the other IADI committees and it establishes and implements by-laws and policies governing the business and affairs of IADI, establishes codes of conduct and behavior, develops terms of references for various committees and does all things necessary to ensure the sound functioning of the Association. Mr. Junior Frederick of Trinidad & Tobago chairs the newly created Audit Committee. www.iadi.org

Regional Committees 1. Africa 2. Asia 3. Caribbean Latin America FIRST FOUR REGIONAL COMMITTEES Regional Committees 1. Africa 2. Asia 3. Caribbean Latin America Eurasia The five regional committees have been established. Regional Committees were created for Africa, Asia, Caribbean, Eurasia and Latin America to reflect regional interests and common issues through the sharing and exchange of information and ideas. The Regional Committees perform those functions in a manner to further the Objects of IADI and act in the best interests of the Association. The Chairs of the Regional Committees are responsible for recommending or proposing action to the Executive Council and communicating plans and activities at each meeting of the Executive Council to ensure transparency and focus.   Chairs of the Regional Committees are appointed by the Executive Council on the recommendation of the Members from the various regions and they report to the Executive Council on their activities. The Africa Committee is chaired by Mr. Ganiyu Ogunleye of the Nigeria Deposit Insurance Corporation, the Asia Committee is chaired by Mr. Hajime Shinohara, of the Deposit insurance Corporation of Japan, the Caribbean Committee is chaired by Mr. Winston K. Carr, of the Jamaica Deposit Insurance Corporation; the Latin America Committee is chaired by Mr. Carlos Isoard of Instituto para la Protección al Ahorro Bancario of Mexico and the Eurasia Committee is Chaired by Mr. Valeriy Ogienko of The Household Deposit Insurance Fund (Ukraine) . www.iadi.org

Initiatives INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS The IADI has established an ambitious agenda for the next three years. In particular it will: 1.     establish a process to develop guidance to increase the effectiveness of deposit insurance systems 2.     form and make extensive use of Regional Committees to build membership and meet regional needs 3.     develop and implement a training plan for deposit insurers 4.     upgrade and maintain the IADI Web site 5.     hold the Annual Deposit Insurers Conferences 6.     assist in the development of new deposit insurance systems 7.    develop partnership arrangements with international financial institutions and others interested in deposit insurance issues 8.    present the views of deposit insurers and provide input on deposit insurance issues through international fora 9.    develop common presentations on the activities of the IADI for use of all members.   www.iadi.org

Strategies INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS In order to achieve its objectives, the IADI has adopted the following principle business strategies:   1.Establish a workable infrastructure for the Association, using technology as an enabler Provide a global forum for the open exchange of information through conferences, workshops, seminars and outreach sessions. Leverage partnership arrangements with entities interested in furthering the objects of the IADI. www.iadi.org

CALENDAR OF EVENTS 2003 - 2004 16 – 20 February 2004 APEC Policy Dialogue on Deposit Insurance, Kuala Lumpur chaired by Canada Deposit Insurance Corporation 27 – 30 April 2004 Standing and Regional Meetings 2 Day Enterprise Risk Management Seminar Meeting of the Executive Council, Basel

CALENDAR OF EVENTS 2003 - 2004 4 – 5 August 2004 Executive Council Meeting, Basel 27 September to 1 October 2004 Toronto Centre Leadership Seminar for Deposit Insurers, Washington

CALENDAR OF EVENTS 2003 - 2004 26 – 29 October 2004 Third Annual IADI Conference, Basel Regional Meetings – Dates to be Announced

Why is IADI developing Guidance on Deposit Insurance? INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS Why is IADI developing Guidance on Deposit Insurance? Before I close I would like to spend a few moments on the issue of guidance and why we are undertaking this work. As you have heard on a number of occasions in this Seminar there is no one "best" form of deposit insurance, no set of "best practices" for all countries to follow. This observation was consistently confirmed in the many discussions that took place among the members of the FSF Working Group on Deposit Insurance as well as among the hundreds of participant at its various conferences and meetings. Reflecting the Working Group's mandate, the guidance is widely adaptable. Great care was taken to ensure that the guidance is non-prescriptive and reflects the full range of deposit insurance experiences around the world. As I observed earlier, there are no "best practices" to prescribe. The report was also supported by research on the practice of deposit insurance – work that led to the development of 16 supplementary discussion papers.   www.iadi.org

INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS While some might regard the guidance in the report as "common sense", it is important to note that it addresses a number of issues that have not been dealt with elsewhere. The focus was on real-world experiences – what has worked, and what has not – and on providing practical advice. The IADI will be taking a similar approach to developing guidance from a deposit insurers point of view. www.iadi.org

How will IADI develop this guidance? INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS How will IADI develop this guidance? So how will we do it? One of the first tasks of Research and Guidance Committee was to develop a process for setting out guidance. That committee has recently worked on guidance for differential premium systems. www.iadi.org

When will IADI hold its next conference? INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS When will IADI hold its next conference? The next IADI annual conference which will be held in Basel in October. I am in the process of developing a theme and a program for the conference and we would encourage your active participation. Information on the conference will be on our Web site: www.iadi.org. We look forward to seeing you all in Basel next October. www.iadi.org

Mission, Vision and Work Plans Mr. John Raymond LaBrosse INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS Mission, Vision and Work Plans Presentation by: Mr. John Raymond LaBrosse Secretary General I look forward to your questions. www.iadi.org