The Federal Deposit Insurance Corporation (FDIC) of the United States and the Philippine Deposit Insurance Corporation (PDIC) have signed a joint communiqué for cross-border cooperation recognizing that depositor protection is the key element for the maintenance of financial stability. The two Agencies agreed to exchange information on policies, tool kits and best practices as allowed by their respective laws since such cooperation would be useful in promoting regional and global financial stability.
The Communiqué was issued at a ceremony held during the Executive Council meetings of the International Association of Deposit Insurers (IADI) at the Makati Shangri-La. Mr. Fred Carns, Director, Office of International Affairs, FDIC, headed the FDIC delegation. Mr. Martin J. Gruenberg, FDIC Chairman, and Mr. Valentin A. Araneta, PDIC President, signed the Communiqué.
This cross-border cooperation is to be conducted on a mutual basis and the Communiqué covers cooperation on technical inquiries, bilateral meetings between the two organizations and possible assistance on cross-border issues to the extent permitted by each country’s laws, rules and regulations.
The Communiqué is a response to the need for cooperation and exchange of information among financial safety net players to address and mitigate systemic risks in a global financial system with interdependent economies. The increasing globalization and complexity of large financial institutions creates unique challenges for regulatory authorities. The Agencies are committed to open cooperation and communication to enhance financial stability.