The Philippine Deposit Insurance Corporation (PDIC) and the Korea Deposit Insurance Corporation (KDIC) have further firmed up their cross-border relations through the signing of a memorandum of understanding (MOU) intended to sustain their insurance systems.

The two institution’s partnership, which started in 2014 and renewed in 2019 and on March 25 this year, is aimed at institutionalizing continued cooperation and information-sharing on deposit insurance, receivership and liquidation, bank resolution, risk management, premium assessment for banks, sources and methods of funds, information technology for database administration, legal and administrative procedures, and public awareness issues.

The MOU was signed by PDIC President and CEO Roberto Tan and KDIC Chairman and President Yoo Jaehoon, the PDIC said in a news release on Wednesday.

PDIC said the continued cooperation bid “attests to the mutual commitment of the Philippines and Korea to sustain the enhancements of their respective deposit insurance systems.”

“Both the PDIC and KDIC are members of the International Association of Deposit Insurers (IADI) and the continuing collaboration between the two DIAs is aligned with the IADI Core Principles for Effective Deposit Insurance Systems, particularly the Core Principle on cross-border issues, which provides that formal information-sharing and coordination arrangements should be in place among DIAs in relevant jurisdictions,” it said.

PDIC said the MOU may be extended for another five years upon joint and written agreement by both DIAs. (PNA)