The Philippine Deposit Insurance Corporation (PDIC) recently hosted an International Conference and Seminar on deposit insurance in Cebu City. The hosting took place days before the worldwide observance of the 5th Annual International Week of Deposit Insurance from May 7 to 14, 2010.

The Conference on Strengthening Deposit Insurance Systems in Crisis and Post-Crisis Situations brought together heads and representatives of member-deposit insurers of the International Association of Deposit Insurers (IADI) from the Asia Pacific, North America, Europe and Africa to discuss and assess critical actions implemented by deposit insurers during the height of the global financial crisis in 2008 and the measures undertaken moving forward. Finance Secretary Margarito B. Teves delivered the Conference’s keynote address.

A Seminar on Claims Management and Payout Operations followed the Summit Conference. PDIC shared with the participating senior technical officers of different deposit insurers insights and ongoing innovations and business process re-engineering on its claims settlement operations to better serve the public.

PDIC President Jose C. Nograles said in his Conference presentation that PDIC will continue to pursue reforms geared towards protecting depositor interests, maintaining public confidence in the financial system and promoting financial stability in the economy.

PDIC is a member of the IADI, an organization of 60 deposit insurers that aims to enhance the effectiveness of deposit insurance systems by promoting guidance and international cooperation. It is also a member of the Asia-Pacific Regional Committee. PDIC President Nograles is a member of the IADI governing body, the Executive Council. Nograles is Chairman of the IADI Audit Committee.

IADI was the forefront of the global financial crisis in 2008. The worst crisis to hit the world highlighted the critical role effective systems of deposit insurance play in maintaining public confidence and financial stability. IADI and its members including the Philippines as represented by PDIC, worked diligently to strengthen deposit insurance systems around the world during the critical period of the global turmoil.

The current International Week of Deposit Insurance with the theme: “Deposit Insurance: Contributing to Financial Stability” spearheaded by IADI highlights the critical role of deposit insurance agencies in helping maintain stability in the banking system.

During the height of the global financial crisis, IADI members implemented various measures to strengthen public confidence in the financial system. Worldwide, at least 27 countries have increased coverage limits, and 18 have introduced a temporary blanket guarantee to give full protection to depositors. In the Philippines, PDIC supported calls for an increase in coverage limit and lobbied for the inclusion of corollary measures that comprised of institutional and financial strengthening measures to help enhance the deposit insurer’s oversight and regulatory functions, mitigate moral hazards and protect the Deposit Insurance Fund. Republic Act 9576, the law that amended PDIC Charter and took effect on June 1, 2009, also granted PDIC the flexibility mechanism to adjust the maximum deposit insurance level when the situation calls for it.