STATE-run Philippine Deposit Insurance Corp. (PDIC) renewed its cross-border partnership with Korea Deposit Insurance Corp. (KDIC) through signing a memorandum of understanding (MoU) on Oct. 9, 2019 in Istanbul, Turkey, a statement said on Wednesday.
The statement also said MoU formalizes the two agencies’ intent to continue their partnership, following the conclusion of the five-year agreement signed in July 2014.
“The new agreement 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 PDIC explained.
The government-run deposit insurer also said 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.
PDIC and KDIC will also share views on the impact and implementation of international standards and guidance on deposit insurance issues.
The state deposit insurer also said 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. Both are members of the International Association of Deposit Insurers (IADI).
The partnership supports the IADI’s core principles for effective deposit insurance systems, specifically the core principle on cross-border issues, it said.
PDIC President Roberto Tan and KDIC President and Chairman Seongbak Wi signed the MoU at the sidelines of the Annual Conference and 18th Annual General Meeting of the IADI hosted by the Savings Deposit Insurance Fund of Turkey.