KUALA LUMPUR: The Malaysia Deposit Insurance Corporation Bill 2010 was tabled for first reading in Dewan Rakyat on Tuesday, paving the way to increase the deposit insurance limit from the current RM60,000 to RM250,000 for next year.
The bill states, under its scope of coverage for deposits, that the corporation would insure Islamic and conventional deposits up to the amount prescribed by the minister on the recommendation of the corporation.
Finance Minister Datuk Seri Najib was reported to have announced on May 11 that the deposit insurance limit would be increased to RM250,000 effective 2011.
He was also reported to have said that the Malaysia Deposit Insurance Corporation would bring forward legislation to enable the government to increase the deposit insurance limit.
Deputy Finance Minister Datuk Dr Awang Adek Hussein tabled the bill set to replace the existing Malaysia Deposit Insurance Corporation Act 2005.
The bill will be debated in this current meeting, said Dr Awang Adek.
The temporary government deposit guarantee would lapse as scheduled at the end of this year and the enhanced protection package would continue to provide increased protection to depositors, said Dr Awang.
The bill seeks to provide for the continuing existence of the Malaysia Deposit Insurance Corporation established under the Malaysia Deposit Insurance Corporation Act.
The bill will also provide for the establishment of an explicit national takaful and insurance benefits protection system and enhancements to the existing national deposit insurance system.
These are part of the legislative proposals to enhance financial consumer protection for Malaysians as Malaysia exits the temporary Governent Deposit Guarantee scheme on Dec 31.
The existing act will be amended to improve the design of its financial safety net mechanism, to equip the Malaysia Deposit Insurance Corporation with adequate powers to effectively deal with troubled member institutions, in line with developments in other jurisdictions following the global financial crisis, the bill stated.
No comments:
Post a Comment