what i meant is for same ground of comparison, PNB does not hav protection like PIDM, they rely on the reserves.

that's the thing. if no banks bankrupt b4, then the probability to have all banks bankrupt at one time is even more insignificant.

this basically is just vanitas self PIDM methodology on "fund not enough" to pay every account holders.

PIDM remains PIDM, coverage remains coverage, stated in black and white that's all.

Government intervention can be anything and anytime, not necessarily they need to save ASNB 1st b4 bank holders or vice versa.

yes agreed.

to add, it is 250k for each and every bank.

haha so just put multiple 250k at different banks lo.

Quick math, 250k x 20000 = 5b.
Assume Malaysia population is 30m, 1% of high net worth individual = 300k.
Assume only 1 bank bankrupt out of 15 banks.

So PIDM only able to cover that 1% people?

Edit: It is up to you guys don't believe number.
Few billions protect 800+ billions. Even just 1% of bank bankrupt can costs whole PIDM.

This post has been edited by vanitas: Dec 21 2018, 11:35 PM

haha i suppose you can shoot a quick mail to pidm regarding this, but in my opinion, i don't think pidm have these high net worth individuals as priorities. in the event that something really happens, and they got to compensate, my guess is the b40 gonna get it first, followed by m40 then if any balance then t20. so yeah, you are not wrong to say that pidm is 'useless' for these rich fellas.

this math formula is not valid, because malaysia population does not equal to bank account holders.

if PIDM can only cover 1% people like you said, then ASNB can cover how many %?

using reserves is not a protection/coverage mechanism by default.

I just counting HNWI, and HNWI without a bank, very new to me, keep under bed huh?

It is not if, it is fact. For ASNB case, I will run if it got no reserves, I told you before.

That's not make sense either. Compensation scheme is to cover a pool of shareholders, not specific person.

No facts showing if a billionaire is one of account holder, the insurance company pay to him first and/or pay to him only.

Up to 250k means it will be distributed, regardless of whether a person is HNWI or not.

On the reserves part since u mentioned it, then it is same way of doing/operating business.

BNM and Private Banks also got their reserves mah.

I am just giving example PIDM doesn't have the fund to pay 1% of HNWI, didn't said must priority give them first. And you are right, it should be distributed fairly regardless b40 or t20.

Fact>>
PIDM reserves is few billions, while total FD by Malaysians is 800+ billions, without counting saving accounts. It is fact that PIDM only has the fund to cover 1% of total FD by Malaysians.
So it doesn't need all banks bankrupt, just 1% bank bankrupt may cost everything of PIDM.

Opinion>>
On the reserves part, everyone got their own opinions, and I doesn't say my opinion is correct or wrong.

This post has been edited by vanitas: Dec 22 2018, 12:01 AM

IMF expert's opinion on deposit insurance i.e. PIDM:
https://www.imf.org/external/np/seminars/en...006/mfl/pam.pdf

If you really want to know why and how PIDM works, or even why it existed.

as mentioned that's the extreme case, coverage remains as coverage, same goes to any insured scheme.

it is for purpose not for speculation/estimation/assumption.

on pidm perspective, it remains yes for banks and no for asnb.

Aiyo, why send this small, short, weak primary 6 educated soldier to do the battle?

The bigger the soldier swamp the better mah.

Fact 1: PIDM got few billions reserves.
Fact 2: Total FD by Malaysians is over 800 billions.
Fact 3: Banks got PIDM, asnb no.
Fact 4: PIDM should be fairly distributed if possible, not by b40 first.
Fact 5: Anyone (especially HNWI and T20) could put 250k in conventional and Islamic, and different banks for their FD. So actually it is not 250k insured per person, but up to 250k x 2 (conventional and Islamic) x 15 (number of banks that he may subscribe, estimate figure only), which is up to 7.5m. And I haven't taking count spouse, parents, kids accounts for the rich.

Nothing speculative above. All facts, up to readers here to interpret.

This post has been edited by vanitas: Dec 22 2018, 09:08 AM

From my understanding, MFRS 139 is replaced.
MFRS 9 doesn't need to report "sebarang rosot nilai ke atas pegangan ekuiti".

Need accounting experts come in.. means it will be forever fixed price according this MFRS 9 or what?

haha, you are right. let me screenshot and enquire pidm regarding this and see if they reply. lol.

Just one night I MIA..
So much discussion on PIDM...
Just chill guys... Its all about personal preference.. U wan PIDM or not.. Want 4% @ FD with PIDM or 6% @ ASx without PIDM.. That's all..

Enjoy your weekend

This post has been edited by nexona88: Dec 22 2018, 09:42 AM

It did, MBF in late 90s

Asb dividend 7% dividend announced

https://www.hmetro.com.my/bisnes/2018/12/40...n-bonus-050-sen

That's when the time internet doesn't popular in Malaysia yet, and I am still too young. Uncle, mind to explain how was the situation on MBF that time?

Facts I know:
There is no PIDM that time.
MBF is largest bank that time.
Acquired by ambank after that.
Mass withdrawals happened.

MBF...
Hmm... Got such bank... Guess I'm just too young that time...
Bigger than maybank?

so, there's a discussion in a small ASB2018 thread,

some people claim that the initial investment limit for ASB used to be rm400k

i tried to ask for proof because I check all the prospectus and all say RM 200k

anyone can verify their claim?