Jean Pierre Sabourin, president and CEO of the Canada Deposit Insurance Corp. and chairman of the Financial Stability Forum Working Group on Deposit Insurance, recently tabled the Working Group’s final report titled, Financial Stability Forum — Guidance for Developing Effective Deposit Insurance Systems.

The report includes about 60 points of guidance covering 20 topics, ranging from identification of public policy objectives to mechanisms for reimbursing depositors’ claims and liquidating assets of failed financial institutions. The Financial Stability Forum endorsed the final report in its entirety.

“The members of the Working Group that developed this guidance were drawn heavily from the ranks of the world’s deposit insurers — and this is reflected in both their approach and their recommendations. Their focus was on real-world experiences — what has worked, and what has not – and their findings offer practical advice,” Sabourin told members of the FSF. The Forum was convened in the aftermath of the 1997 Asian financial crisis to promote international financial stability through the exchange of information and international cooperation.

In preparing the guidance on deposit insurance, the Working Group met with more than 400 senior officials from 119 countries and promoted dialogue through conferences and seminars and a Web site constructed for this purpose..

“The financial system and the safety net continue to become more inter-dependent. It is critical that strong cooperative links be forged between deposit insurers and the other financial safety net participants, with the responsibilities of all parties explicitly set out along with clear mechanisms for information exchange,” Sabourin stated.