Financial Consumer Protection Authority

PIDM carries out extensive public awareness activities to ensure that consumers are aware that our protection systems exist and understand their benefits and limitations. This provides them with clarity, reassurance and confidence towards our financial protection systems in times of stress or uncertainty and helps to mitigate the risk of runs on our member institutions.

PIDM promotes sound risk management by collecting annual  premiums and levies from our member institutions through the Differential Premium System framework for member banks (DPS), the Differential Levy System framework for insurance companies (DLS) and the Differential Levy System framework for takaful operators (DLST). Member institutions are charged based on their risk profiles under the DPS, DLS and DLST -  the better the risk profile, the lower the premiums or levies, and vice versa.  The premiums and levies are collected in advance, during business as usual so that funding is available in time of resolution of a member institution.

As a resolution authority, PIDM’s role is to resolve a failing member institution promptly and effectively, which will help minimise disruption to financial consumers, preserve financial system stability and avert a potential broader economic crisis. We have a robust resolution framework consisting of policies, infrastructure and operational capabilities to enable PIDM to undertake a resolution in a prompt and orderly manner. We have also put into place an integrated reimbursement system to enable timely reimbursement so that depositors have continued access to their funds in a bank closure. Resolution planning for PIDM member banks is also a key component to ensure that they can support PIDM in a resolution.

To enhance cooperation and coordination in crisis management and resolution, PIDM collaborates closely with local authorities like Bank Negara Malaysia (BNM) and the Ministry of Finance through structured interagency arrangements and joint simulation exercises. This includes the development of an interagency crisis preparedness binder that provides clear and structured guidance to crisis response. Internationally, PIDM engages with foreign resolution authorities via MOUs and crisis management groups, participating in cross-border simulations to boost preparedness and coordination in handling crises effectively.