BSP, PDIC strengthen coordination on bank oversight

The Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit Insurance Corporation (PDIC) have strengthened their cooperation in supervising banks through a revised memorandum of agreement (MoA) on bank examination, signed on 17 October 2025 at the BSP Head Office in Manila.

The updated agreement aims to streamline how both financial regulators oversee the country’s banking system — enhancing efficiency, reducing overlap, and ensuring depositor protection amid a fast-evolving financial landscape.

“This new MoA strengthens our partnership by defining our division of labor more clearly. BSP focuses on credit, market, [and] operational risks. PDIC focuses on deposit-related risks,” said BSP Governor Eli M. Remolona Jr.

The revised MoA introduces a clearer framework for joint examinations and improved information sharing between the two agencies. It establishes detailed procedures for planning, conducting, and monitoring joint bank assessments, while also promoting real-time data sharing and coordinated policy enforcement.

PDIC president and chief executive officer Roberto B. Tan said the agreement reinforces depositor confidence in the country’s banking system. “For depositors, today’s agreement is a renewed assurance — your hard-earned savings are safeguarded by two financial regulators, working seamlessly together to uphold your trust,” Tan said.

Originally signed in 2005 and previously amended in 2011, the new iteration of the MoA aligns with the amended BSP and PDIC charters.

It also supports both institutions’ shift toward risk-based supervision — a global best practice that focuses on identifying vulnerabilities early and minimizing systemic risks to the banking sector.