Manila: The Philippine Deposit Insurance Corporation (PDIC) and the Korea Deposit Insurance Corporation (KDIC) have strengthened their cross-border relations by signing a memorandum of understanding (MOU) aimed at sustaining their insurance systems. This partnership, which originated in 2014 and was renewed in 2019 and again on March 25 this year, focuses on institutionalizing cooperation and information-sharing in areas such as deposit insurance, receivership and liquidation, bank resolution, risk management, premium assessment for banks, sources and methods of funds, information technology for database administration, legal and administrative procedures, and public awareness issues.

According to Philippines News Agency, the MOU was signed by PDIC President and CEO Roberto Tan and KDIC Chairman and President Yoo Jaehoon. The PDIC highlighted that this ongoing cooperation reflects the mutual commitment of the Philippines and Korea to enhance their respective deposit insurance systems. Both the PDIC and KDIC are members of the International Association of Deposit Insurers (IADI), and their collaboration aligns with the IADI Core Principles for Effective Deposit Insurance Systems. Specifically, it adheres to the Core Principle on cross-border issues, which mandates formal information-sharing and coordination arrangements among DIAs in relevant jurisdictions.

The PDIC also noted that the MOU could be extended for another five years upon joint and written agreement by both deposit insurance agencies.