The Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit Insurance Corp. (PDIC) have signed an amended memorandum of agreement (MOA) on bank examination, that would enhance regulatory and policy frameworks of the monetary institutions.
“Equally important, this amended MOA reflects our continuing cooperation to ensure that our joint working arrangements are responsive to the changes taking place in the operating environment of our supervised and regulated institutions,” BSP Governor Amando Tetangco in a speech said.
He explained that the original agreement on bank examination, which was signed on October 11, 2005, created the overall framework for the institutions to supervise banks through the conduct of on-site examinations, jointly or independently.
“While the original MOA has served us well, we recognized the need to align it with current supervisory procedures, practices and requirements,” he said.
Tetangco noted that the amended agreement harmonizes the BSP and PDIC’s examination procedures to avoid overlapping of functions and efforts, enhances data-sharing arrangement and maximizes the use of reports and resources.
It also provides the PDIC more flexibility in terms of the types of banks it can jointly examine with the BSP, defines the specific findings/information that the BSP examiners can share with PDIC examiners, and considers the provisions as well as rules and regulations of Republic Act 9576, which amended the PDIC Charter, he said.
“With these amendments, we look forward to the PDIC and the BSP being able to address examination findings and violations with expediency . . . especially those involving unsafe and unsound banking activities,” he said.
Tetangco added that the amendment is consistent with the thrust of the BSP and the PDIC to promote and strengthen good governance practices in supervised banks to ensure the stability of the banking system at all times.
“We look forward therefore to exploring new projects and expanding existing initiatives with the PDIC to realize our shared goal of delivering a better quality of life to Filipinos through a sound and responsive banking system,” Tetangco said.