1. Your deposit is insured up to P250,000. Multilateral Cooperation for Consumer Protection and Public Awareness Presented by: Jose C. Nograles President Philippine Deposit Insurance Corporation 6 th Asian Regional Committee Meeting March 28, 2008

2. Your deposit is insured up to P250,000. PRESENTATION OUTLINE I.Background and Rationale II.Regulatory Framework III.Consumer Protection and Public Awareness Initiatives IV.Multilateral Cooperation Malaysia Taiwan Philippines V.Conclusions

3. Your deposit is insured up to P250,000. I. Background/Rationale

4. Your deposit is insured up to P250,000. One of the principal objectives of a DIS: DIS consumer protection “… protect the less-financially sophisticated depositors when a bank fails.” FSF Working Group I. Background/Rationale

5. Your deposit is insured up to P250,000. Deposit insurers protect consumers by:  deposit insurance  public awareness to equip consumers to make sound financial decisions I. Background/Rationale

6. Your deposit is insured up to P250,000. Deposit insurer protects consumers Deposit Insurance Public Awareness Financial Literacy (FL) (component) FL Programs used to protect consumers Individual Initiatives MULTILATERAL COOPERATION I. Background/Rationale

7. Your deposit is insured up to P250,000. “Partnerships are Valuable Components of any public awareness effort and collaboration is a key part of the national strategy to improve financial literacy.” US Financial Literacy and Education Commission I. Background/Rationale

8. Your deposit is insured up to P250,000. Advantages of multilateral cooperation  Information sharing  Synergies  Wider reach  Cost efficiency I. Background/Rationale

9. Your deposit is insured up to P250,000. II. Regulatory Framework MalaysiaMultipleMinistry of Finance Bank Negara Malaysia Securities Commission Malaysia Deposit Insurance Corporation TaiwanUnifiedFinancial Supervisory Commission Central Bank of China Central Deposit Insurance Corporation PhilippinesMultipleBangko Sentral ng Pilipinas Insurance Commission Securities and Exchange Commission Philippine Deposit Insurance Corporation

10. Your deposit is insured up to P250,000. III.Consumer Protection and Public Awareness Initiatives Malaysia  Website  Information materials  Toll-free line  TV advertisements Philippines  Website  Information materials  Press releases  Media briefings and TV appearances  Depositor Protection and Awareness Week (DPAW)  Audio-visual Guide to Filing Claims  Quick action desk Taiwan  Website  Information materials  Toll-free line  Trimedia advertisements  Hosting international symposia  Token giveaways

11. Your deposit is insured up to P250,000. IV. Multilateral Cooperation A. Malaysia  Formation of Financial Education Working Committee Bank Negara Malaysia, chair MDIC, member  Collaboration with: Financial Mediation Bureau Credit Counseling and Debt Management Agency

12. Your deposit is insured up to P250,000. IV. Multilateral Cooperation A. Malaysia  Projects Road shows Exhibits Public talks BNM and FPAM Financial Education Road Show 2007  MDIC and BNM Strategic Alliance Formalize coordination and information sharing. Minimize duplication of roles and reporting requirements.

13. Your deposit is insured up to P250,000. IV. Multilateral Cooperation B. Taiwan  FSC coordinates financial education efforts Banking Bureau Securities and Futures Bureau Insurance Bureau Other FSNs (CB and CDIC) Private Sector  2007 Financial Literacy Festival 113 financial and government institutions 239 booths

14. Your deposit is insured up to P250,000. IV. Multilateral Cooperation B. Taiwan  2005 Financial Education Tour short dramas information brochures  Collaboration with Taiwan Academy of Banking semi-annual youth camps

15. Your deposit is insured up to P250,000. IV. Multilateral Cooperation C. Philippines  Membership in Financial Sector Forum (FSF) oBangko Sentral ng Pilipinas (BSP) oSecurities and Exchange Commission (SEC) oInsurance Commission (IC) oPhilippine Deposit Insurance Corporation (PDIC) Financial Sector Forum (FSF)

16. Your deposit is insured up to P250,000. IV. Multilateral Cooperation C. Philippines Consumer Protection and Education Committee (CPEC) – protecting rights of financial services consumers Financial Literacy Campaign for Overseas Filipino Workers (OFWs) Financial Sector Forum (FSF)

17. Your deposit is insured up to P250,000. IV. Multilateral Cooperation C. Philippines  Participation in the Anti-poverty Commission Financial Literacy Campaign  Collaborated with Department of Education for the PDIC Financial Literacy Project for Students

18. Your deposit is insured up to P250,000. IV. Multilateral Cooperation C. Philippines  PDIC Financial Literacy Program (PDIC-FLP) for Students Teacher’s Guides distributed to about 5,500 public high schools

19. Your deposit is insured up to P250,000. IV. Multilateral Cooperation C. Philippines  PDIC Financial Literacy Program (PDIC-FLP) for Students expanded to: Private high schools College students Translation of TG to English

20. Your deposit is insured up to P250,000. IV. Multilateral Cooperation C. Philippines Estimated combined reach of FLP = about 7 million students 7 million students 7 million students

21. Your deposit is insured up to P250,000. V. Conclusions Advantages  Synergies are derived from cooperation.  Collaborations with central banks are advantageous.  Some activities call for cooperation with agencies other than FSNs. Some drawbacks  Focus of activities not solely on DI  Constraints in arriving at mutually acceptable schedules

22. Your deposit is insured up to P250,000. V. Conclusions Moving forward  Broaden partnership pool.  Consider formalizing arrangements.  Conduct survey.

23. Your deposit is insured up to P250,000.

24. Thank you.