On February 8, 2024, at the Bangko Sentral ng Pilipinas (BSP) head office in Manila, BSP Governor Eli M. Remolona, Jr., and Philippine Deposit Insurance Corporation (PDIC) President and Chief Executive Officer (CEO) Roberto B. Tan led the signing of the BSP-PDIC Revised Memorandum of Agreement (MOA) on Information Exchange.
The signing of the MOA underscores the two agencies’ robust collaboration and shared aspiration for a resilient and adaptive financial sector.
BSP Governor Remolona remarked that the revised MOA comes at an opportune time as the regulatory frameworks and supervisory approaches of both the BSP and the PDIC have evolved significantly over the years. He stated, “We have shifted from a very prescriptive examination and supervision style to a risk-based, more principles-based approach. We do not specify actions for banks. Instead, we advise them to take risks seriously, and that is the foundation of all these regulatory standards.”
The Governor also highlighted the critical role of deposit insurance in managing deposit runs, which he considers the most significant risk facing banks. “I urge all involved, as custodians of this Revised MOA, to honor your commitments to maintain the MOA’s currency, relevance, and functionality in our collective aim of promoting financial system stability,” he added.
PDIC President and CEO Tan emphasized, “Transparent communication between our agencies allows for a thorough comprehension of potential risks, enabling us to formulate preemptive strategies, identify challenges early, and intervene swiftly to address issues among banks and ensure adaptability to the evolving landscape.”
He further noted, “The partnership between our institutions becomes increasingly crucial to safeguard the depositing public, particularly against the backdrop of increasingly sophisticated and complex frauds and scams.”
The Revised MOA modifies the original agreement dated November 12, 2002, and the supplemental MOA executed in 2004; it also updates the catalog of documents exchanged. This agreement will function as an Omnibus Agreement encompassing all forms of information, data, and reports exchanged between the BSP and the PDIC as they carry out their respective mandates.
Other significant aspects of the Revised MOA include: the facilitation of seamless information sharing via digital platforms and streamlined processes; utilizing the BSP Electronic Information System (EIS) for prompt, secure, and effective sharing of reports, data, and information between the agencies; and the regular review and updating of the MOA to reflect the changing supervisory requirements. Additionally, the agreement will simplify banks’ prudential reporting obligations, as they will no longer be required to submit certain prudential reports to the PDIC separately.
