PDIC signs cross-border partnership deal with Korean counterpart-A A +A
Friday, July 25, 2014
THE Philippine Deposit Insurance Corporation (PDIC) and the Korea Deposit Insurance Corporation (KDIC) signed a memorandum of understanding (MOU) to foster cross-border cooperation between the two deposit insurance agencies.
The MOU was signed by PDIC President Valentin A. Araneta and KDIC Chairman and President Joo Hyun Kim on July 23 at the Peninsula Manila in Makati City.
The MOU 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 is in response to the increasing need for international cooperation among financial safety net players to help monitor and address cross-border issues. The enhanced cooperation is 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 MOU provides for exchange of information, technical inquiries, mutual support through exchange of experts and staff; and the conduct of bilateral meetings.
Araneta said the MOU 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,” President Araneta said.
For his part, Kim 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. 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.”
He also said that the MOU signals further progress in the strengthening of the mutual cooperation between Korea and the Philippines which he hopes will extend to further areas.
The PDIC and the KDIC place utmost importance on sharing their mutual knowledge and experiences in order to enhance the effectiveness of their respective deposit insurance systems.
Both agencies are frontrunners in the implementation of deposit insurance system improvements.
The KDIC was named the “Deposit Insurance Organization of the Year 2012” by the IADI and PDIC won the award for the year 2013. (PR)