MANILA – The Philippine Deposit Insurance Corporation (PDIC) and the World Bank Group, through the International Bank for Reconstruction and Development (IBRD), have signed a landmark advisory agreement to study and develop a Risk-Based Assessment System (RBAS) for deposit insurance.

PDIC President and CEO Roberto B. Tan and IBRD Country Director Zafer Mustafaoglu formalized the agreement in Makati City on June 26, 2025. The partnership is seen as a major milestone for the Philippine banking and deposit insurance systems.

The RBAS framework aims to determine bank premiums for deposit insurance based on each institution’s risk profile. The system is designed to promote financial stability, reduce moral hazard, and encourage prudent risk management among banks.

IBRD will conduct a comprehensive study to evaluate the need, feasibility, and design of a risk-based premium system tailored to the Philippine context, in line with the amended PDIC Charter. The study will cover the framework, methodology, and implementing guidelines for the new system, drawing on international best practices.

“This Risk-Based Assessment System will help the PDIC better foresee and address potential problems as new challenges emerge from a more complex banking environment,” Tan said, adding that the project paves the way for an enhanced deposit insurance system.

Mustafaoglu underscored the importance of the initiative in boosting sound risk management and public confidence. He said the agreement supports timely and data-driven financial sector reforms aligned with international benchmarks.

The partnership comes as PDIC pushes for legislative reforms to strengthen its mandate, expand its authority, and modernize operations for a more resilient deposit insurance system.