Bangko Sentral ng Pilipinas (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 on 08 February 2024 at the BSP head office in Manila.
The MOA signing signifies the two agencies’ strong collaboration and shared vision for a resilient and responsive financial sector.
BSP Governor Remolona said the Revised MOA is timely as the regulatory framework and supervisory culture for both the BSP and the PDIC have changed over the years. He shared that, “We have moved from a very prescriptive examination and supervision style to a risk-based, more principles-based supervision. We do not tell banks specifically what to do. We tell banks to take risks seriously, and that is the reason for all these regulatory standards.”
The Governor also emphasized the important role of deposit insurance as a tool in managing deposit runs, the biggest risk for banks. “I enjoin everyone, as stewards of this Revised MOA, to follow through on your commitments to keep the Revised MOA updated, relevant, and operational in pursuit of our primary objective of promoting financial system stability,” the BSP chief added.
PDIC President and CEO Tan said, “Transparent communication between us provides opportunities for a comprehensive understanding of potential risks, enabling us to draw up preemptive measures, detect challenges early, and promptly intervene to immediately address problems among banks to make it responsive to the changing times.”
He added, “The collaboration between our institutions becomes even more paramount and imperative to protect the depositing public, especially from frauds and scams that have become even more elaborate and complex.”
The Revised MOA amends the agreement dated 12 November 2002 and the supplemental MOA executed in 2004; it also updates the list of documents shared therein. It will be operationalized as an Omnibus Agreement covering all information, data, and reports shared between the BSP and the PDIC in pursuit of their respective mandates.
Other key features of the Revised MOA include: seamless information sharing through digital platforms and rationalized processes; leveraging the BSP Electronic Information System (EIS) for the timely, secure, and efficient sharing of reports, data, and information between the two agencies; and the periodic review and update of the MOA to consider evolving supervisory requirements. Banks’ prudential reporting requirements will also be streamlined, with banks no longer required to submit some prudential reports separately to the PDIC.