::: Welcome To Bank Deposit Security Fund :::


    Over view about the fund

        The establishment and evolution of deposit insurance systems and institutions was closely related to the failure of banks in honoring their obligations towards the depositors as a result of financial crises. These deposit insurance institutions have come to play a central role in the stability and safety of banking institutions of different countries.
‏The stability and safety of financial markets and institutions became one of the top priorities of decision makers. The deposit insurance institutions have come to play a central role in maintaining the integrity and stability of banking systems as they constitute a major partner in the financial safety net composed of the Ministry of Finance and National Economy, the Central Bank of Sudan, commercial banks, and Bank Deposit Security Fund (BDSF).
‏The designing of a deposit insurance system depends on a number of factors, and each country has to select the system that suits its economic situation and banking system. These factors include coverage (level and volume of deposits to be insured); powers and authorities (whether to give the system wide ranging authority or limit it only to compensation at liquidation); means of financing (annual contribution or payment on liquidation); system of assessing premium (Flat Rate or risk based premium), beside other factors to be taken into consideration when designing a deposit insurance system. All these factors have to be included in the regulation that reflects the philosophy of deposit insurance in the countries.
‏The recurrence of international financial crises during the last few years of the twentieth century, led to an increasing recognition of the important role that deposit insurance systems play in consolidating public confidence in the banking institutions and financial system. Because of that, the international financial institutions like the International Monetary Fund (IMF), the World Bank, the Bank of International Settlements (BIS) and the Basil Committee decided to establish the International Association of Deposit Insurers (IADI) in 2002 as a voluntary organization that comprises of 79 Members and Associate Members representing over 65 concerned parties. The establishment of IADI has helped greatly in raising awareness and increasing knowledge and resulted in introducing operational guidelines for deposit insurance institutions of member states. Most important among these guidelines are those related to basic principles of deposit insurance that all countries aspire to follow and abide by.