PDIC renews cross-border pact with South Korean counterpart

State-run Philippine Deposit Insurance Corp. (PDIC) has renewed its cross-border agreement with Korea Deposit Insurance Corp. (KDIC) to further enhance cross-border cooperation between the two deposit insurance agencies,

PDIC president Roberto Tan signed the memorandum of understanding (MOU) with KDIC chairman and president Seongbak Wi at 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 agreement formalizes the two agencies’ intent to continue their partnership following the conclusion of the five-year agreement signed in July 2014.

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. It allows the two agencies to share their knowledge and experiences to mutually enhance the effectiveness of their respective deposit insurance systems.

It 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.

Furthermore, both agencies agreed to 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.