PDIC, Mongolia counterpart deepen deposit insurance cooperation

The Philippine Deposit Insurance Corporation (PDIC) has further strengthened its international cooperation efforts after forging a new partnership with the Deposit Insurance Corporation of Mongolia (DICoM), aimed at enhancing depositor protection and financial system stability in both countries.

The agreement marks the first formal collaboration between PDIC and DICoM and reflects a shared commitment to improving the effectiveness of their respective deposit insurance systems amid increasingly complex financial risks.

The Memorandum of Understanding (MOU) was signed by PDIC President and CEO Roberto B. Tan and Mr. Amar Lkhagvasuren, Board Member of the National Deposit Insurance Committee of Mongolia, during the International Association of Deposit Insurers (IADI) Annual Conference held in Lisbon, Portugal, in November 2025.

Under the agreement, the MOU will remain in force for five years and may be extended for an additional five-year period upon the joint and written consent of both parties.

The MOU establishes a structured framework for cooperation, consultation, and knowledge exchange between the two institutions across a wide range of technical and operational areas.

These areas include deposit insurance systems, receivership and liquidation processes, bank resolution frameworks, risk management practices, premium assessment methodologies, and fund management strategies.

The agreement also covers collaboration on information technology systems to support efficient database administration, as well as the exchange of insights on legal and administrative procedures relevant to deposit insurance operations.

Public awareness initiatives are likewise included, recognizing the role of depositor education in maintaining confidence in the banking system and preventing panic during periods of financial stress.

A key component of the MOU is the exchange of views on the impact and implementation of international standards and guidance related to deposit insurance.

This provision is intended to help both PDIC and DICoM adapt their policies and operations in response to evolving global financial risks and regulatory expectations.

The agreement further provides for joint activities such as collaborative research projects, senior-level study visits, and the establishment of working groups to support capacity-building initiatives.

These initiatives include training programs and technical exchanges designed to enhance institutional expertise and promote the adoption of best practices in deposit insurance.

PDIC’s partnership with its Mongolian counterpart adds to a growing network of international alliances formed by the Philippine deposit insurer over the years.

The PDIC has forged technical cooperation agreements with peer institutions from Germany, Indonesia, Japan, Kazakhstan, Malaysia, Mongolia, Russia, South Korea, Thailand, the United Kingdom, the United States of America, and Vietnam.

Through these partnerships, the PDIC continues to reinforce its commitment to aligning Philippine deposit insurance practices with globally recognized standards and principles.

The corporation said such international engagements are vital in strengthening its institutional capacity to protect depositors and contribute to the overall stability of the Philippine financial system.

The agreement with DICoM underscores PDIC’s broader strategy of leveraging global cooperation to address emerging risks and ensure that its deposit insurance framework remains responsive, resilient, and aligned with international best practices.