Ready with the Financial Safety Net

Webinar on ongoing and expected impact of the Covid-19 crisis on

resolution authorities and deposit insurers

This webinar is jointly organised by the Financial Stability Institute (FSI) of the Bank for
International Settlements (BIS) and the International Association of Deposit Insurers (IADI).

Videoconference, 22 and 24 September 2020, 14:00–15:30 CEST

Videoconference details to be provided following registration

Agenda
Tuesday 22 September Part 1: Impacts of the pandemic

14:00 Welcome and introduction

David Walker, Secretary General, IADI

14:10 Risks to the banking sector during the Covid-19 pandemic

The Covid-19 pandemic has caused an unprecedented human and health crisis, and
the measures adopted globally to contain the virus have triggered an economic
downturn. Banks are more resilient and have been subject to greater supervisory
scrutiny, than in the past, putting them in a better position than at the onset of the
great financial crisis. Moreover, interventions by central banks, supervisors and
governments have helped to ease liquidity pressures and mitigate the impact on
financial stability. Nonetheless, if the impact of the virus is prolonged, that resilience
may be tested in the face of a severe and lengthy slowdown in economic activity. In
addition, banks may be subject to greater operational and cyber risks in the current
period. The panellists in this session will discuss the risks to the banking sector, and
the impact of the crisis and associated policy measures on banks’ continuing viability.
Chair: Ruth Walters, Senior Advisor, FSI, BIS
Panellists:
Elod Takats, Principal Economist, BIS Monetary and Economic Department
Kevin Bertsch, US Federal Reserve Board

14:40 Deposit insurance in a pandemic: actions and impacts

As the pandemic has spread globally throughout 2020, deposit insurers have had to
carry out their functions under new conditions. This session considers the impact on
deposit insurers to date, including policy measures adopted, business continuity
actions, and how payouts have been conducted during this period. It will also consider
the cross-border implications if policy measures such as temporary suspensions of
requirements or extensions of deadlines are not coordinated between jurisdictions.

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 Chair: Eugenia Alamillo, Senior Advisor - Training and Technical Assistance, IADI
Panellists:
Diane Ellis, Director, Division of Insurance and Research, US Federal Deposit
Insurance Corporation (FDIC)
Romeo M Mendoza, Jr, Senior Vice President for the Deposit Insurance Sector,
Philippine Deposit Insurance Corporation (PDIC)

15:10 Q&A
Panellists from both sessions will answer questions submitted by participants
Moderator: Eugenia Alamillo, IADI

15:30 End of session

Thursday 24 September Part 2: Contingency planning and preparedness

14:00 Introduction
Ruth Walters, FSI

14:05 Contingency planning and preparedness for resolution authorities and deposit
insurers
This session will discuss the measures that resolution authorities and deposit insurers
are currently taking to ensure that they are as ready as possible to respond effectively
to bank failures, should the economic conditions worsen. These measures may
include, heightened monitoring, contingency planning, enhanced information sharing,
public awareness campaigns (for example, about deposit insurance), and actions to
improve readiness for resolution.
Chair: Ruth Walters, FSI
Panellists:
Philippa de Villoutreys, Senior Manager, Resolution Directorate, Bank of England
Mustapha M Ibrahim, Director of Research, Policy and International Relations, Nigeria
Deposit Insurance Corporation

14:35 COVID-19 and the impact on FinTech growth: challenges and opportunities for
deposit insurers and resolution authorities
During the pandemic, banks and other financial institutions have been compelled to
take serious steps to minimise the effects of social confinement and distancing
measures on their day-to day operations and ensure continuity of access to all their
services. There is growing evidence that the use of digital finance (online banking,
contactless payments, digital stored value products, etc.) has accelerated in this
environment. This poses questions for deposit insurers: Will bank risk profiles
increase or decline? What happens if a non-bank e-money or e-wallet provider fails?
What recourse do consumers have when a third-party platform used to provide
traditional banking services shuts down or fails, and how can customers be protected?
Does ease of access through FinTech change depositor behaviour and lead to more
or less volatility and risk from a deposit insurance perspective? FinTech may also

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 offer opportunities to deposit insurers and resolution authorities to facilitate their
planning for and management of failing banks and accelerate reimbursement
processes (such as payouts and transfers of accounts).
Chair: David Walker, IADI
Panellists:
Carlos Colao Osorio, Senior Expert, Fondo de Garantía de Depósitos de Entidades
de Crédito (FGD, Spain)
Herman Saheruddin, Director of Research, Indonesia Deposit Insurance Corporation

15:05 Q&A
Panellists from both sessions will answer questions submitted by participants
Moderator: Ruth Walters, FSI

15.25 Wrap up
David Walker, IADI

15:30 End of session

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