MB okays joint supervision of banks by BSP, PDIC

The Monetary Board, the policy making body of the Bangko Sentral ng Pilipinas (BSP), has approved a proposal for joint supervision of banks by the BSP and Philippine Deposit Insurance Corp. (PDIC).

A memorandum of agreement (MOA) will be signed to establish an overall framework for the two financial regulators to supervise banks through the conduct of joint examination or independent examination.

The MOA seeks to avoid duplication of efforts in the same functional areas over the same period.

The MOA also provides a framework for the prompt sharing and exchange of relevant reports, significant information and preliminary findings on individual banks resulting from the conduct of independent on-site examinations by either BSP or PDIC.

The preparation of the MOA is one of the projects of the Financial Sector Forum (FSF) which is composed of the BSP, the Securities and Exchange Commission, the Insurance Commission and the PDIC.

The FSF was formed to enhance coordination among these agencies for a more effective supervision of financial conglomerates, information sharing and consumer protection. – Donnabelle Gatdula