PDIC, Vietnam counterpart renew cross-border partnership

MANILA, Philippines — State-run Philippine Deposit Insurance Corp. (PDIC) and the Deposit Insurance of Vietnam (DIV) renewed their cross-border agreement to share knowledge and experiences to mutually enhance the effectiveness of their respective deposit insurance systems.

Last month, PDIC president and CEO Roberto Tan and DIV chairman Pham Bao Lam signed the memorandum of understanding (MOU) in Phu Quoc, Vietnam renewing their mutual commitment to further enhance cross-border cooperation between the two deposit insurance agencies.

Both entered into a five-year cross-border agreement in November 2018.

The latest agreement was signed on the sidelines of the IADI Asia Pacific Regional Committee Workshop on enhancing the role of deposit insurers in early detection and timely intervention hosted by the DIV.

The MOU formalizes the two agencies’ intent to continue their partnership following the conclusion of the five-year agreement signed in November 2018.

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 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 DIV also agreed to share views on the impact and implementation of international standards and guidance on deposit insurance issues.

The partnership supports the Core Principles for Effective Deposit Insurance Systems, specifically the Core Principle on cross-border issues, which were formulated by the International Association of Deposit Insurers.

Both the PDIC and DIV are members of the IADI, a Switzerland-based non-profit organization established in 2002 to promote international cooperation and guidance in the field of deposit insurance.

The MOU is effective for five years and may be extended for another five years upon joint and written consent of PDIC andthe DIV.