State-run Philippine Deposit Insurance Corp. (PDIC) recently signed a memorandum of understanding (MOU) with its counterpart in South Korea to foster cross-border cooperation between the two deposit insurance agencies.
On July 23, PDIC President Valentin Araneta signed the memorandum together with Korea Deposit Insurance Corp. (KDIC) Chairman and President Joo Hyun Kim.
According to the PDIC, the memorandum of understanding on cross-border cooperation is part of the initiative of the two deposit insurance agencies to address and mitigate systemic risks in the global financial system.
The signing of mutual cooperation between the two agencies is in response to the increasing need for international cooperation among financial safety net players to help monitor and address cross-border issues, it said.
The enhanced cooperation is also expected to benefit the depositing public from both jurisdictions.
The partnership also aims to further enhance the compliance of both the PDIC and KDIC with the Core Principles for Effective Deposit Insurance Systems formulated by the International Association of Deposit Insurers (IADI), specifically the Core Principle on cross-border issues. Both the PDIC and KDIC are members of the IADI.
The PDIC said the memorandum provides for exchange of information, technical inquiries, mutual support through exchange of experts and staff, and the conduct of bilateral meetings.
Araneta said that the memorandum of understanding signing with KDIC symbolizes the longstanding spirit of cooperation, assistance and friendship between the PDIC and the KDIC.
This partnership is “a very substantial evidence of KDIC’s commitment to share its expertise and technology with PDIC,” Araneta said. For his part, the KDIC president cited the complexity and interconnected nature of the global financial system.
“Increasing globalization makes cooperation among countries indispensable. In this regard, the signing of the MOU between our two organizations is very timely and meaningful,” Kim said.
“The MOU with PDIC is particularly more meaningful for us as the PDIC is one of the most respectable deposit insurers in the world with its 51 years of history,” Kim said, adding that the memorandum signals further progress in the strengthening of the mutual cooperation between Korea and the Philippines which he hopes will extend to other areas.