State-run Philippine Deposit Insurance Corp. (PDIC) and the World Bank Group have signed an agreement to develop a risk-based assessment system for deposit insurance.
The state deposit insurer said Thursday the new system, known as RBAS, will determine the premiums banks pay for deposit insurance based on their individual risk profiles. The goal is to align insurance costs with the level of risk each bank poses to the PDIC’s Deposit Insurance Fund.
PDIC president Roberto Tan and World Bank country director for the Philippines, Malaysia and Brunei Zafer Mustafaoglu signed the agreement in Makati City.
Under the advisory agreement, the World Bank’s International Bank for Reconstruction and Development (IBRD) will conduct a study to evaluate the feasibility and design of a risk-based premium system tailored to the Philippines. The IBRD will also provide technical assistance to create the framework, methodology, and implementation guidelines.
Tan said a sound risk-based assessment framework is “essential and critical” and will help the PDIC better foresee and address potential problems in a more complex banking environment.
Mustafaoglu said a well-designed system promotes sound risk management and strengthens public confidence in the financial safety net. He said the agreement supports timely, data-driven financial sector reforms aligned with international benchmarks.
The partnership is part of ongoing legislative reforms to amend the country’s deposit insurance law, aiming to expand PDIC’s mandate and modernize its operations for a more resilient system.
 and the World Bank Group are collaborating to create a new risk-based system for deposit insurance premiums, aiming to strengthen the country's financial stability.){kind=link}