IADI/EBRDSeminar on Deposit Insurance for the Western Balkans

BIS, December 8-9, 2003

Case Study on Public Awareness - Bulgaria

Presentation by:Ms. Roumyana Markova, Chief Expert, International Cooperation

Bulgarian Deposit Insurance Fund

General background

Public awareness is often overlooked in DIS design

Essential that the public knows about the benefits and limitations of the scheme

Although costs may be considerable, the need for public awareness should not be underestimated

FSF Working Group on Deposit Insurance Discussion Paper on Public Awareness

D IF S em inar, “R ila” H otel D IF S tra teg ic G oals and O bjectives B orovets, O ctober 3 -5 , 2003 and the In t’l C ooperation & P R D ept.

IADI/EBRD Seminar on Deposit BIS, December 8-9, 2003 Insurance for the Western Balkans

BDIF public relations

Public relations policy - since BDIF establishment in 1999– objectives and principles

Public Relations Rules - 2000– specify terms and procedures for relationships with the media

and general public, and other BDIF communication activities– chief spokesperson - BDIF Chairman

Organization of PR activities - in-house resources

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IADI/EBRD Seminar on Deposit BIS, December 8-9, 2003 Insurance for the Western Balkans

BDIF public awareness program during the years of operation

Objectives– dissemination of information on DIS features & BDIF functions– restoring confidence in the banking system– provision of relevant practical information in two bank failures

in 1999 and 2000

Target audiences– general public– media– banks and banking association

D IF S em inar, “R ila” H otel D IF S tra teg ic G oals and O bjectives B orovets, O ctober 3 -5 , 2003 and the In t’l C ooperation & P R D ept.

IADI/EBRD Seminar on Deposit BIS, December 8-9, 2003 Insurance for the Western Balkans

BDIF public awareness program during the years of operation (con’d)

Communication techniques– press releases and conferences, interviews for the media– printed materials: Annual Report, Q & A Brochure on

deposit insurance - 2000– hot telephone line - 2000– provision of information to general public in BDIF offices– provision of written responses to requests and complaints– BDIF web site - 2001 (both in Bulgarian and English)– discussions and seminars

D IF S em inar, “R ila” H otel D IF S tra teg ic G oals and O bjectives B orovets, O ctober 3 -5 , 2003 and the In t’l C ooperation & P R D ept.

IADI/EBRD Seminar on Deposit BIS, December 8-9, 2003 Insurance for the Western Balkans

Survey and opinion poll onpublic awareness of DI in Bulgaria

National representative study conducted in 2002Quantitative & qualitative assessments

Findings – 86% of people who have savings have deposited their funds

in banks– 24% of respondents know in general about the BDIF– 43% of bank depositors are familiar with the DIS in place– level of awareness of the population and depositors is low– BDIF public image-closely related to one of the banking system

D IF S em inar, “R ila” H otel D IF S tra teg ic G oals and O bjectives B orovets, O ctober 3 -5 , 2003 and the In t’l C ooperation & P R D ept.

IADI/EBRD Seminar on Deposit BIS, December 8-9, 2003 Insurance for the Western Balkans

Survey and opinion poll on public awareness of DI in Bulgaria (con’d)

Recommendations– BDIF should enhance effectiveness in provision of

information to the general public– efforts should target both present and potential depositors– deeper involvement of banks’ employees in the information

process– diversifying communication channels– major information categories

D IF S em inar, “R ila” H otel D IF S tra teg ic G oals and O bjectives B orovets, O ctober 3 -5 , 2003 and the In t’l C ooperation & P R D ept.

IADI/EBRD Seminar on Deposit BIS, December 8-9, 2003 Insurance for the Western Balkans

New BDIF public awareness program

Why propose a new program– Survey findings and recommendations– new BDIF powers in bank bankruptcy proceedings

Objectives– further popularization of the DIS features – maintaining confidence in the banking system– information on harmonization with EU legislation– prompt and effective reaction when failures occur– provision of information on BDIF supervisory functions

in bank bankruptcy proceedings– enhancing BDIF image

D IF S em inar, “R ila” H otel D IF S tra teg ic G oals and O bjectives B orovets, O ctober 3 -5 , 2003 and the In t’l C ooperation & P R D ept.

IADI/EBRD Seminar on Deposit BIS, December 8-9, 2003 Insurance for the Western Balkans

New public awareness program (con’d)

Target audiences– present and potential depositors (specific subgroups)– media representatives– banks’ operation and front-line staff; banking association– lawmakers and public officials– uninsured depositors and other creditors of failed banks

D IF S em inar, “R ila” H otel D IF S tra teg ic G oals and O bjectives B orovets, O ctober 3 -5 , 2003 and the In t’l C ooperation & P R D ept.

IADI/EBRD Seminar on Deposit BIS, December 8-9, 2003 Insurance for the Western Balkans

New public awareness program (con’d)

Communications techniques – new ones to be added– educational radio-series on deposit insurance– TV ads– seminars for banks’ branch directors on DIS main features– paid advertisements in printed media– front-door and counter stickers– product registers– public awareness plan for potential future failures– printed materials: new Q & A leaflet on bank bankruptcy– seminar for the media on BDIF functions in bank bankruptcy– revamp of BDIF web site

D IF S em inar, “R ila” H otel D IF S tra teg ic G oals and O bjectives B orovets, O ctober 3 -5 , 2003 and the In t’l C ooperation & P R D ept.

IADI/EBRD Seminar on Deposit BIS, December 8-9, 2003 Insurance for the Western Balkans

Operational Issues

Organization of activities - in-house resources supported by consultancy advice on specific issues

Consulting of banks’ officials and banking association

Costs

Evaluation of results

D IF S em inar, “R ila” H otel D IF S tra teg ic G oals and O bjectives B orovets, O ctober 3 -5 , 2003 and the In t’l C ooperation & P R D ept.

IADI/EBRD Seminar on Deposit BIS, December 8-9, 2003 Insurance for the Western Balkans

Thank you for your attention

D IF S em inar, “R ila” H otel D IF S tra teg ic G oals and O bjectives B orovets, O ctober 3 -5 , 2003 and the In t’l C ooperation & P R D ept.

IADI/EBRD Seminar on Deposit BIS, December 8-9, 2003 Insurance for the Western Balkans