PIDM Targets RM128 Mln Revenue FY09

KUALA LUMPUR, May 12 (Bernama) -Malaysia Deposit Insurance Corporation (PIDM), which administers the statutory deposit insurance system, is targeting a revenue of RM128 million for the current financial year ending Dec 31, 2008 under the new Differential Premium Systems (DPS) regulation rate structure for its member banks."The target was forecast based on a premium of RM120 million and an expected investment income of RM8 million under the new regulatory system," its chief executive officer, Jean Pierre, told a press conference here today to release PIDMs Annual Report 2007.He said PIDMs net income for last year totalled RM89 million and its total accumulated surpluses stood at RM211 million.Last year, PIDM's revenue was RM115.7 million, comprising RM110 million in premiums and RM5.7 million from investment income, he said."With the growth in deposits held with members, the total insured deposits grew to RM179 billion at the end last year from RM165 billion at end-2006," said Pierre.PIDMs membership increased to 33, comprising 22 commercial banks and 11 Islamic banks as at Dec 31, 2007, he said.Pierre said this year PIDM has rolled out a number of regulations, applicable for its member banks, to further strengthen the deposit insurance system under DPS regulations.He said the new DPS regulation rate structure provides incentives for PIDMs member banks to adopt sound risk management practices as the premiums will be collected based on individual member banks profile."This DPS will reward banks whose risk profiles are low through reduced premiums, and impose higher premiums on banks with higher risk profiles," he added.