The Philippine Deposit Insurance Corporation recently hosted its First Regional Study Visit on the PDIC Experience. PDIC President Jose C. Nograles addressed the delegates from the Malaysia Deposit Insurance Corporation, Deposit Insurance Corporation of Japan, Central Deposit Insurance Corporation (Taiwan), Deposit Protection Agency (Thailand), and Deposit Protection Board Zimbabwe, and said that while deposit insurer’s main aim is to contribute to financial system stability, banks can and do fail, as underscored by recent events. While Asia and Africa are luckily not in the center of the financial crisis, it is prudent to gear up for any possible ripple effects. In the case of the Philippines, though the banking system remains stable, PDIC is constantly looking at measures to further improve its payout operations.

For two days, PDIC officials shared their experiences with their foreign counterparts and had spirited discussions with them. PDIC speakers drew heavily from PDIC’s experience as the second oldest deposit insurance agency in Asia.

The delegates were from member-institutions of the International Association of Deposit Insurers (IADI) an organization of 52 deposit insurance agencies all over the world. IADI members include the oldest deposit insurer in the world, the Federal Deposit Insurance Corporation, as well as the Canada Deposit Insurance Corporation and the UK Financial Services Compensation Scheme, among others. The IADI was organized to share deposit insurance expertise and to contribute to the stability of financial systems. PDIC is one of the founding members of IADI and Nograles sits in its policy making Executive Council.