Have you ever put a thought to your money in the bank? Have you even tuned to the news lately, as Cypriot depositors rush to remove money from their banks, after a call to impose levy on their savings? While one might argue this will not happen in Malaysia, I say let us look at the facts. I'm not implying anything. Just look at the facts.
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Extract from PIDM Annual Report 2011
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In a brief view, Total Funds available are around about RM500 million.
Assuming maximum coverage is RM250,000 for each account that would only supply enough money for 2,000 accounts. Bank deposits (consumer and corporate) goes into tens of billions for most banks.
Now, tell me whether it is enough? There's no other way except for PIDM to raise more funds through borrowing, meaning government assistance, or possible bail-out. Are you prepared to roll the dice? Will government bail you out when your bank collapses? If you asked me, I would think that this deposit insurance seems underfunded even with "Government Guarantee" as advertised. Similar with the case of many countries. Perhaps the government should do something about this. After all, money is the blood of the economy. This is not a scare article, merely to inform.
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