PDIC signs info sharing, cooperation agreement with US counterpart

MANILA, Philippines - The Philippine Deposit Insurance Corp. (PDIC) has signed an agreement with its counterpart in the US to allow the sharing of information and cooperation between the two entities related to depositor protection.

In a statement, the PDIC said it entered into a joint communiqué with the Federal Deposit Insurance Corp. (FDIC) during the meetings of the International Association of Deposit Insurers being held in Makati City.

The two agencies, it said, agreed to exchange information on policies, tool kits and best practices as well as hold bilateral meetings and extend technical assistance, if necessary, among each other.

“Possible assistance on cross-border issues” was also covered by the agreement, the state deposit insurer said. It did not elaborate.

“The communiqué 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,” the PDIC said.

“The agencies are committed to open cooperation and communication to enhance financial stability,” it added. 

Under the law, the PDIC is tasked to receive, rehabilitate and/or liquidate ailing banks closed down by the Bangko Sentral ng Pilipinas (BSP). Their tasks also include servicing depositor and creditor claims.

So far this year, a total of seven banks, all based in the countryside, were shut down by the BSP for being illiquid. They are all being managed by the PDIC.