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IADI Includes Proportionality Principle in Risk Management Guidelines

The International Association of Deposit Insurers (IADI) asked for public comment on their Guidance Paper, ‘Risk Management and Internal Control System of Deposit Insurers’. The Paper provided ten Guidance Points to address risk management in Deposit Insurers (DIs). Most notably, the Paper included Guidance Points based on the principle of proportionality and additionally provided suggestions for minimum requirements more appropriate for smaller DIs. WOCCU commented on the Paper and stated its support for IADI’s proportional based guidelines and further requested clear and direct guidance on proportionality so that national regulators have the green light to properly tailor regulations to smaller financial institutions such as credit unions. WOCCU’s comment letter in response to IADI’s above referenced Guidance Paper on risk management can be found here.

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