The Philippine Deposit Insurance Corporation (PDIC) and the Indonesia Deposit Insurance Corporation (IDIC), active members of the International Association of Deposit Insurers (IADI) and the IADI Asia-Pacific Regional Committee, signed a Memorandum of Understanding (MOU) to renew cross-border cooperation to more effectively carry out the mandates of depositor protection and financial stability in both jurisdictions.
The MOU was signed by PDIC President and CEO Roberto B. Tan and IDIC Chairman Purbaya Yudhi Sadewa on November 12, 2024 on the sidelines of the 23rd IADI Annual General Meeting held in Tokyo, Japan. The PDIC and IDIC previously signed a cross-border partnership in October 2015.
The MOU establishes a framework for mutual knowledge-sharing and collaboration, aimed at strengthening the effectiveness of the deposit insurance systems of the Philippines and Indonesia. The knowledge-sharing between the two jurisdictions covers the areas of deposit insurance, receivership and liquidation, risk management, and public awareness issues, among others. Key initiatives under the MOU include information exchange, prompt responses to technical inquiries, expert and staff exchanges, bilateral meetings, and other joint deposit insurance-related research projects on matters of common interest. The MOU also highlights the agencies’ dedication to sharing technical expertise and fostering regional collaboration to address emerging challenges in an increasingly globalized financial landscape.
Recognizing the interconnectedness of the global financial system, the PDIC and IDIC emphasized the critical role of such cooperation in safeguarding depositors and promoting financial stability, citing that the partnership underscores both jurisdictions’ commitment to upholding global deposit insurance standards and principles, particularly on the Core Principle on cross-border issues of the IADI Core Principles for Effective Deposit Insurance Systems.
The PDIC and IDIC are members of the 99-member strong IADI, a non-profit organization based in Basel, Switzerland that aims to set standards for deposit insurance systems and serves as the principal forum where deposit insurers from around the world meet to share knowledge and expertise. IADI promotes international cooperation and guidance in the field of deposit insurance, provides training and technical assistance; and produces research and guidance on matters related to deposit insurance.
The Philippine Deposit Insurance Corporation (PDIC) was established on 22 June 1963 by Republic Act 3591 to protect depositors and help maintain stability in the financial system by providing deposit insurance, co-regulating banks with the Bangko Sentral ng Pilipinas (BSP), and liquidating closed banks.
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