||Asean Affairs 20 June 2013
Deposit insurers sign cross-border pact
The Philippine Deposit Insurance Corp. (PDIC) and the Federal Deposit Insurance Corp. (FDIC) of the US has recently signed a joint communiqu? for cross-border cooperation to ensure both countries’ financial stability by improving depositor protection.
“The two Agencies agreed to exchange information on policies, tool kits and best practices as allowed by their respective laws since such cooperation would be useful in promoting regional and global financial stability,” the PDIC announced yesterday.
The PDIC, which will turn 50 years old at the end of the week, is currently hosting the five-day 39th International Association of Deposit Insurers (IADI) Executive Council Meeting and International Conference.
PDIC President Valentin A. Araneta said the opportunity to bring together the IADI and hosting the international meetings is an “occasion where the economic progress of the Philippines based on a platform of good governance can be appreciated by delegates from deposit insurance agencies”. About 30 deposit insurance corporations from different countries and jurisdictions are attending the conference.
The signing of the Communiqu? with FDIC is the first to be concluded during the meetings in Manila.
PDIC in a statement said this cross-border cooperation is to be conducted on a mutual basis and the Communiqu? covers cooperation on technical inquiries, bilateral meetings between the two organizations and possible assistance on cross-border issues to the extent permitted by each country’s laws, rules and regulations.
“The Communiqu? is a response to the need for cooperation and exchange of information among financial safety net players to address and mitigate systemic risks in a global financial system with interdependent economies,” said PDIC’s Valentin. “The increasing globalization and complexity of large financial institutions creates unique challenges for regulatory authorities. The agencies are committed to open cooperation and communication to enhance financial stability.”
IADI is a non-profit organization of deposit insurers established in May, 2002 aimed at contributing to the enhancement of deposit insurance systems by promoting research and guidance based on best practices for deposit insurers, and for international cooperation. IADI currently has 68 member-countries/organizations, nine associates, and 12 partners.
PDIC said the international conference will highlight the relevance of financial inclusion to deposit insurance and financial stability.
Last month, PDIC also renewed its mutual cooperation with its Japanese counterpart the Deposit Insurance Corporation of Japan (DICJ). (LCC)