PDIC renews cross-border partnership with Korean counterpart
RENEWED CROSS-BORDER PARTNERSHIP. The Philippine Deposit Insurance Corporation (PDIC) and the Korea Deposit Insurance Corporation (KDIC) renewed its cross-border agreement through the signing of a Memorandum of Understanding (MOU) on October 9, 2019 at the Annual Conference and 18th Annual General Meeting of the International Association of Deposit Insurers (IADI) in Istanbul, Turkey. PDIC President Roberto B. Tan and KDIC Chairman and President Seongbak Wi signed the MOU that allows the two agencies to share their knowledge and experiences to mutually enhance the effectiveness of their respective deposit insurance systems. PDIC and KDIC earlier entered into a five-year cross-border agreement in July 2014.
The Philippine Deposit Insurance Corporation (PDIC) and the Korea Deposit Insurance Corporation (KDIC) signed a memorandum of understanding (MOU) on October 9, 2019 in Istanbul, Turkey to further enhance cross-border cooperation between the two deposit insurance agencies.
PDIC President Roberto B. Tan and KDIC President and Chairman Seongbak Wi signed the MOU at the sidelines of the Annual Conference and 18th Annual General Meeting of the International Association of Deposit Insurers (IADI) hosted by the Savings Deposit Insurance Fund of Turkey.
The MOU formalizes the two agencies’ intent to continue their partnership following the conclusion of the five-year agreement signed in July 2014. The new agreement provides for the exchange of knowledge and experiences between the two deposit insurance agencies in order to mutually enhance the effectiveness of their respective deposit insurance systems.
The knowledge-sharing activities cover the areas of deposit insurance; receivership and liquidation; bank resolution; risk management; premium assessment; sources and methods of funds; information technology for database administration; legal and administrative procedures; and public awareness issues. PDIC and KDIC will also share views on the impact and implementation of international standards and guidance on deposit insurance issues.
The partnership supports the IADI Core Principles for Effective Deposit Insurance Systems, specifically the Core Principle on cross-border issues. Both the PDIC and KDIC are members of the IADI.
The MOU is effective for five years and may be extended for another five years upon joint and written consent of PDIC and the KDIC.
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The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is PhP500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.
PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.
Corporate Communications Dept.