The agreement aims to exchange international experience and best practices to enhance the effectiveness of deposit insurance systems, reports MiddleAsianNews.
Recently, the Philippine Deposit Insurance Corporation (PDIC) and the Mongolian Deposit Insurance Corporation (DICoM) signed a Memorandum of Understanding (MOU) aimed at improving deposit insurance systems through bilateral cooperation, knowledge exchange, and joint research.
The signing of the memorandum took place during the annual conference of the International Association of Deposit Insurers (IADI), held in Lisbon, Portugal. The document was signed by PDIC President and CEO Roberto B. Tan and member of the Board of the National Committee on Deposit Insurance of Mongolia Mr. Amar Lkhagvasuren.
This is the first such cooperation between the two deposit insurance agencies formalized in a memorandum, emphasizing both organizations' commitment to strengthening depositor protection and promoting financial stability in their countries.
The agreement will be in effect for five years with the possibility of extending it for another five years by mutual consent of the parties.
The memorandum outlines areas for joint work, consultations, and further development of knowledge and experience of PDIC and DICoM in key areas such as deposit insurance, handling contests and liquidation, addressing banking issues, risk management, and premium assessment.
It will also create opportunities for exchanging views on the implementation of international standards and recommendations in the field of deposit insurance, which will help both organizations adapt to changing financial risks.
Another important aspect of the memorandum is the possibility of organizing joint events, including research projects, high-level familiarization visits, and the establishment of working groups to support capacity development and training initiatives.
The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963, under Republic Act No. 3591 to ensure the protection of depositors and promote the stability of the financial system.
PDIC operates as a subsidiary agency of the Central Bank of the Philippines (Bangko Sentral ng Pilipinas) and is an active participant in Financial Sector Forums, the Financial Stability Coordination Council, and the Financial Inclusion Steering Committee.
On January 10, 2013, the Parliament of Mongolia adopted the Law on Banking Deposit Insurance, which laid the foundation for the establishment of the Mongolian Deposit Insurance Corporation (DICoM), tasked with protecting the interests of depositors and ensuring financial stability. DICoM is a non-profit state corporation and an independent government agency responsible for implementing the deposit insurance scheme. The official opening of DICoM took place on August 16, 2013, with the participation of senior management, where it was presented with a banking certificate.
