The Bangko Sentral ng Pilipinas (BSP) wants its co-regulator Philippine Deposit Insurance Corp. (PDIC) as its attached agency and not of the Department of Finance (DOF) and is pushing for the amendment of the PDIC law to make this happen.
The DOF also supports the proposed measures as contained in Senate Bill Nos. 2089 and 1260, of transferring the PDIC to the BSP which will clarify both of its functions as regulator of problematic banks and liquidator of failed banks.
“The proposed amendments include organizational reforms that will make the PDIC an attached agency of the BSP, which is the regulator of the banking industry. This is seen to further harmonize the interplay between the central bank and the country’s deposit insurance entity, thereby resulting in better policy coordination,” said the BSP in a statement late Wednesday.
The BSP said the International Monetary Fund is backing this long overdue reform initiative to “enhance synergy among BSP, PDIC and other domestic financial regulators in promoting the country’s financial stability.”
“The BSP looks forward to continuing coordination with the legislature and the PDIC for the immediate passage of the bill that will amend the PDIC charter,” said the BSP.
The PDIC Charter (Republic Act No. 3591) amendment is also expected to strengthen BSP’s banking supervision powers.
The BSP’s own charter was amended and approved into a new law in 2019 after more than 20 years of debate and haggling in both houses of Congress.