In Malaysia, the administrative body propagates the system through the mass media and publications in four languages, educating people about who to turn to for help, he added.
"This can help prevent a potential deposit run if banks fail. Because if bank runs start, it is hard to stop them," Sabourin said.
In an unprecedented move, the Taiwanese government has taken over four troubled lenders within four months.
The unexpected takeover of The Chinese Bank (
The people who rushed to the bank were mostly in their 40s and 50s and their savings were mostly less than the current insured amount of NT$1 million, CDIC chairman Ray Dawn (董瑞斌) said.
After the government's intensive takeover action, three more debt-ridden local lenders remain on the watch list, sparking public concern and extensive discussion about whether the financial regulator should step in at an early stage to reduce the social cost.
However, Sabourin said that there was no fixed model available to handle distressed financial institutions, and that local situations and cultures had to be taken into account.
Regulators usually hope to resolve these problems through normal commercial transactions, like investment by or mergers with other lenders before an eventual takeover or exit from the market, he added.
Taiwan performs well in terms of transparency, with the public fully aware of which banks are financially weak. Sabourin said that people would not know that in most other countries.
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