Philippines, Indonesia deposit insurers forge cross-border agreement

MANILA, Philippines – State-run deposit insurers of the Philippines and Indonesia have inked a cross-border cooperation agreement for information and expertise sharing.

Philippine Deposit Insurance Corp. president Cristina Que Orbeta and Indonesia Deposit Insurance Corp. chairman Halim Alamsyah signed the memorandum of understanding (MOU) during the 14th International Association of Deposit Insurers (IADI) annual general meeting and conference in Kuala Lumpur, Malaysia last Oct. 29.

Citing globalization and the interconnectedness of the global financial system, Orbeta stressed the importance and significance of cross-border cooperation in protecting the depositing public and promoting financial stability.

 She said the partnership with Indonesia alongside other Asian countries is a testimony to PDIC’s commitment to share technical expertise with its neighbors and enhance regional cooperation.

Under the MOU, the PDIC and IDIC would foster enhanced cooperation through exchange of information, prompt response to technical inquiries, effective support for exchange of experts and staff, conduct of bilateral meetings between the two organizations, and other activities that promote collaboration in addressing relevant cross-border issues.

 The agreement is valid for a period of five years and may be extended upon joint consent of the parties.

The partnership also aims to further enhance the compliance of both the PDIC and IDIC with the Core Principles for Effective Deposit Insurance Systems formulated by the IADI, particularly on cross-border issues.

 Both the PDIC and IDIC are IADI members.

Aside from Indonesia, the PDIC has existing cross-border agreements with its counterparts in Japan, South Korea, Malaysia, Thailand, United Kingdom and the US.

 PDIC was established through Republic Act 3591 in June of 1963 to provide depositor protection and help maintain stability in the financial system by providing permanent and continuing deposit insurance.