In 2009, the International Association of Deposit Insurers (IADI) together with the Basel Committee on Banking Supervision (BSBS) developed the ‘Core Principles for Effective Deposit Insurance Systems, setting an important benchmark for jurisdictions to use in establishing or reforming deposit insurance systems. The Core Principles were designed to be adaptable to a broad range of jurisdiction circumstances to take into account the broader characteristics of safety net arrangements and address a comprehensive range of issues including coverage, funding, powers, membership, transitioning from blanket to limited coverage and prompt reimbursement. In 2011, IADI’s Core Principles for Effective Deposit Insurance Systems were officially recognized by the Financial Stability Board (FSB) and added to the Compendium of Key Standards for Sound Financial Systems.

In 2010, a methodology for compliance assessment with the Core Principles for Effective Deposit Insurance Systems was completed. The methodology has been used by the International Monetary Fund (IFM) and the World Bank (WB) in financial sector evaluations of IMF and WB member states under the financial sector assessment program (FSAP).

Although the original Core Principles have served their purpose well, lessons learnt from the recent financial global crisis and developments in the regulatory landscape have shown that revision would maintain their use as a flexible, internationally applicable standard. As a result, in 2013 IADI has undertaken the revision process. In October 2014 IADI’s Executive Council formally approved the revised set of Core Principles and IADI’s revised standards were included in the Compendium of 12 Key Standards for Sound Financial Systems. The revised Core Principles strengthen the deposit insurance standards in several areas including reimbursement speed, coverage, funding and governance, adding more guidance on the deposit insurer’s role in crisis preparedness and management. The updated document also reflects the greater role played by many deposit insurers in resolution regimes while continuing to accommodate a diverse range of deposit insurance systems.

In 2016 the Handbook for the Assessment of Compliance with the Core Principles for Effective Deposit Insurance Systems was issued. It is designed to provide additional guidance for assessing a jurisdiction’s compliance with the Core Principles.