DAVAO CITY—The Philippine Deposit Insurance Corporation (PDIC) sought the support of the Department of Finance (DOF) to its new corporate thrusts that include risk assessments to test PDIC resilience and enhance its stability as a state deposit insurer.
Last week members of the PDIC Board paid a courtesy visit to the new head of the DOF, Secretary Ralph Recto, who is also vice-chairman of PDIC Board.
In that briefing for Recto, the PDIC board “highlighted the state deposit insurer’s corporate priorities in carrying out its consequential mandates.”
The PDIC said it would formulate a legislative agenda “to strengthen existing authorities on bank resolution and align these with global best practices.” It would conduct “internal and external simulation exercises to test its crisis management plans and be in pace with the growing complexities in the financial landscape.”
These moves would be supported by the digital transformation of its processes to enhance public service delivery.
“Also in the pipeline to help sustain the resilience of the deposit insurance system are the conduct of a study on risk-based assessment scheme for banks and the formulation of a Shariah-compliant Islamic deposit insurance system,” it added.
The board members likewise discussed corporate priorities “involved strategic initiatives to implement the recent amendments to the PDIC Charter aimed at enhancing the Philippine deposit insurance system and the ability of the state deposit insurer to protect the depositing public and promote confidence in the financial system.”
It disclosed that there are ongoing studies “that review the current maximum deposit insurance coverage and methodology for deposit insurance fund targeting, highlighting that the continued build-up of the DIF [Deposit Insurance Fund]z level favorably influences public confidence in financial institutions and financial stability.” This was to anticipate the impact on the responsiveness of the DIF in addressing organizational dynamics.
The PDIC was also set to review its structure and staffing pattern to optimize operational efficiency.
The board members who paid a courtesy visit to Recto were PDIC President and CEO Roberto B. Tan, and members DOF Undersecretary Bayani H. Agabin, Director Aurora C. Ignacio, Director Rogelio M. Guadalquiver, Director Juan D. de Zuniga Jr.; and Deputy Treasurer of the Philippines Erwin D. Sta. Ana.
The PDIC said Recto expressed support to PDIC and “emphasized the need for continued collaboration to optimize opportunities that promote the stability not only of the financial sector but the economy in general.”