AHachment APHILIPPINE DEPOSIT INSURANCE CORPORATION

REPORT ON ACCOMPLISHMENTS OF STRATEGIC OBJECTIVES (SO)

Strategic Objective (SO)/ 2016Weight FormulaStrategic Measure (SM) Target Actual as of 30 September

SO 1. To Maintain the Deposit Insurance Fund (DIF) to Adequately Cover Deposit Insurance and Bank Resolution

SM 1 Ratio of DIFto Estimated Insured Deposits (EID) 20% (DIF/EID)x 100% 5.5% 5.7% I

(based on a 12-month average)Range ofTarget DIF to EID Ratio

5.5%and above 20%5.25%- 5.49% 18%5%- 5.24% 16%Below 5% 0%

SO 2. To Sustain Client Satisfaction level

SM 2 Customer/Stakeholder Satisfaction 5% Actual Accomplishment Improvement from the 4.66 3(based on a survey designed and verified by an baseline rating of 4.55 (Very Satisfactory)independent third party) (Very Satisfactory) 2

SM3 Conduct of public awareness campaign among 2% Actual Accomplishment 500 senior citizens from 10 451 senior citizens from 2 communities werenew target groups for financial inclusion communities (in 5 reached by public awareness campaign

underserved provinces)covered by the financial

literacy campaign

SO 3. To Settle Valid Deposit Insurance Claims Promptly

SM 4 Foraccounts w/ balances of ~ PlOO,OOO:

90%of valid 4 deposits paid within TAT5 12.5% Actual TAT 10 - 22 working days (WD)

Banksw/ ~ 20 branches 10WD 100%or 36,523valid deposits in 14closed ruralbanks (RBs)paid within 3 to 10WD

Banksw/ > 20 branches 19WD 100%or 13.503valid deposits in 1closed thrift bank(TB)paid within 15WD

Multi-unit bank w/ conditions 6 22WD --

Strategic Objective (SO)/ 2016Weight FormulaStrategic Measure (SM) Target Actual as of 30 September

SM 5 Foraccounts wi balances of > P100,OOO:

90%of valid 4 claims settled within TAT5 12,5% Actual TAT 15- 50 WDBankswi :::20 branches 15WD 100%or 4,326 valid claims in 14closed RBs

settled within 8 to 15WD

Banks w] > 20 branches 44WD 100%or 3,101 valid claims in 1 closed TBsettledwithin 25 WD

Multi-unit bank wi conditions 6 50WD --

SO4. To Protect the Depositors in the Banking System

SM 6 Average number of days from exit conference or 18% Average number of days 40WD 35WD 7

last day of examination, whichever is later, tosubmission of PDIC Directives to the ExaminedBank's Board

SO5. To Immediately Distribute Assets to Creditors and Terminate Liquidation of Closed Banks

SM 7 Number of Projects of Distribution (PODs) filed with 18% Absolute number 40 17the Liquidation Court based on the number ofclosed banks

SO6. To EnsureContinuous Improvement in Processes and Systems Consistent with Policies, External Regulations and Internationally-Accepted Standards

SM8 Implementation of Enterprise RiskManagement 4% Actual Accomplishment Board-approved Business Formulation of BusinessContinuity Planning(ERM)Framework Continuity Management (BCP) framework ongoing

System (BCMS) Framework

Board-approved Formulation of GRC Framework ongoingGovernance, RiskandCornpliance (GRC)

Framework

SM 9 ISOCertification 4% Actual Accomplishment 1 frontline service Training workshops for the ISOCore Team and(Assessment and Collections) concerned key officers and staff conducted in

July 2016;Internal Quality Audit conducted in Sept. 2016.ISOcertification scheduled in the second weekof November 2016

Strategic Objective (SO)/ 2016Strategic Measure (SM) Weight Formula

Target Actual as of 30 September

S07. To Deliver Quality Public Service Through Highly Competent Workforce

SM 10 implementation of Competency Framework 4% Average Competency Established Baseline Impact Group Inc. (IGI) was engaged as theLevel of the (for operating units - Deposit consulting service provider for Competency-Organization Insurance Sector. Based Human Resource System (CBHRS)Phase

Examination and Resolution II project thru Negotiated Procurement.Sector and Receivership and Contract was executed on August 23. 2016.

Liquidation Sector) Competency Assessment Tool Design coveringCore Competencies & 1 Leadership/Managerial Competency was presented toEXCOM by IGI on September 30.2016. Actualconduct of the Competency AssessmentSurveyshall be undertaken by November 2016.

The Framework was benchmarked with targetBoard-Approved Succession market groups (BSP.LBP.DBP)and other

Planning Framework agencies (DOLE.DOE).Framework for approval by the President andthe Board in November

Total 100%I Based on 0 9-month overage. The ratios for the months of July. August and September are based on EID as of 30 June 2016 less EID of banks closed as of end of said months.

2 Based on PDIe's Service Quality Feedback Survey conducted by an independent service provider from October to December 2015.Numerical rating for 'Very Satisfactory" has a range of 4.50 to 5.00 based on PDIC Service Quality Rating Range Scale.

3 Based on a 9-month average

4 Valid claims refer to claims for deposit accounts examined to be legitimate and eligible for deposit insurance. To be considered valid. claims must be filed with complete

supporting evidences/documents that are acceptable to PDIC for deposit balances of greater than PI 00.000. or with complete address and with no outstanding loans with

closed bank for deposit balances of PI 00.000 and below.

5 From bank takeover

6 Multi-unit bank should meet all the following conditions: (a) >25.000 accounts; (b) < 50% of accounts qualify for waived filing; and (c) > 70% of accounts net of those waived

for filing are high risk

7 For 37 banks with Board-approved Bank Examination Report (BER)

IDfer /I~r fied corre~: /'

A. ESTERD. ~VoPOLP.Corporate Planning Group Date SVP.Management Services Sector Date

»:»:~~ ORBETA _

President DateCARLOS G. DOMINGUEZ IIISecretary. Department of Finance andChairman of the PDIC Board of Directors

Date

Attachment B1

PHILIPPINE DEPOSIT INSURANCE CORPORATIONSTRATEGIC INITIATIVE PROFILE

STRATEGIC INITIATIVE PROFILE I

1. Name of Project:

Formulation of a Resolution Framework for Domestic Systemically Important Banks (DSIBs)

2. Project Description:

Development of a Resolution Framework for DSIBs,including identification of sources offunds, and arrangements and coordination with other financial safety nets.

3. Project Milestones:

Timeline Funding StatusActivitiesStart End

BudgetlSource

a. Research for data and/or 1Q 2Q POIC • Preliminary data oninformation and study of 2016 2016 Resolution Frameworkavailable or similar gathered from otherframeworks for OSIBsfrom jurisdictions wereother jurisdictions presented on 14 April,

2016 Excom meeting.

b. Collation and analysis of 2Q 3Q • Conducted researchdata 2016 2016 and discussion on

OSIBsframework.

• Requested BSPa copyof OSIBsin a letter tothe Governor dated22 August 2016.

• Request is currentlyunder considerationby the BSPgiven theprohibition on thedisclosure of specificinformation aboutindividual banks asprovided in Sec. 27 ofRA No.7 653 (The NewCentral Bank Act),unless authorized bythe Monetary Board orthe Governor ..

1 The budget is only for estimated cost of meetings to be incurred, and charged to Corporate Business/Policy Developmentand Enforcement Expense (CBPDEE).

Timeline Funding statusActivities start End Budgetl Sourcec. Formulation of the 2Q 4Q • The framework shall be

proposed Framework, 2016 2016 documented throughincluding coordination the POIC Flmcnciolwith other POIC Crisis Managementconcerned units and and Resolution (FCMR)financial safety nets, and Handbook which isapproval of the being draftedFramework by the POIC pursuant to theBoard directive of the

Financial StabilityCoordination Council(FSCC) to develop anoverarching FCMRHandbook.

• The said Handbook,which focuses on theresolution toolsavailable to POIC inthe event of afinancial crisis involvinga OSIBfailure, will beamong the bases forthe crafting of theNational FCMRHandbook by theFSCC.

Total

4. Measures Affected:

Strategic Measure 1: Ratio of DIFto Estimated Insured Deposits (EID) (based on a12- month average)

Prepared by: Notedb~

Ma. Ana Carmela L.VillegasEVP,Examination and Resolution Sectorr:

, (

E~zonVice President - Resolution Group

~

13 October 2016

'. - ~

PHILIPPINE DEPOSIT INSURANCE CORPORATION

STRATEGIC INITIATIVE PROFILE

Attachment 82

STRATEGIC INITIATIVE PROFILE II

1. Name of Project:

study on Setting Up of Islamic Deposit Insurance System (IDIS) (2016-2017)

2. Project Description:

The conduct of research and study about Islamic banking, financial system anddeposit insurance system in order ·to determine the need for and requirementsfor the setting up of an Islamic Deposit Insurance System in the Philippines in viewof the moves to amend the charter of AI Amanah Islamic Bank of the Philippinesand establish an Islamic banking system in the country.

3. Project Milestones:

Activities Timeline-. status

(for 2016) start End. .... - ...

Knowledge capacity Q1 Q4 Research and information gatheringbuild-up on the possible 2016 2016 For Q3:need for and l. Researched on potential ofrequirements for the growth of Islamic Banking andestablishment of an IDIS Finance in the Philippinesin the Philippines

- Conduct of research 2. Meeting with the Philippineand gathering of Center for Islam and Democracyinformation materials and Prof. Salma Rasul of the UPon IDIS Law Center (July 27,2016)

" , Attendance in.. _. -, , - 3~- 2nd Intemationallslamic .. . .-

relevant seminars .. -- '. Financial. Conference, MakatiCity (July 18-19,2016)

- ,- Reports on the ,-- ----_ .... - _ ..... -- - _.- .- - ...---- ...... _- .... - - ....-research made, For Q4:information gatheredand seminars l. Conduct further research onattended Sukuk

2. Consolidate the studies made onMalaysia, Sudan, Jordan, Nigeriaand Bahrain IDISStructures andFeatures

3. Consolidate the researchesmade on the principles of IslamicBanking and Finance includingthe Potential and Challenges forthe Growth of Islamic Bankingand Finance in the Philippines

4. Attend relatedseminars/conferences

. ...--/ ..• J t r

Activities Timeline status

TOTAL

4. Measures Affected:a. Strategic Objective 4. To protect the depositors in the banking system

Prepared b~ ~ . /

7f~L-Atty. Nancy l. Sevilla-SamsonVP Legal Services Group

Noted k---VMe. Anto ette Brilantes-BoliverSVP, Leg I Affairs Sector

- --~ ---- ----- ._----_. -- --_._-_._-----------I

Attachment 83

PHILIPPINE DEPOSIT INSURANCE CORPORATIONSTRATEGIC INITIATIVE PROFILE~.

STRATEGIC INITIATIVE PROFILE III

1. Name of Project:

Implementation of Medium-Term Corporate Social Responsibility (CSR) Program

2. Project Description:

Formulation of a comprehensive 5-year program on CSR that will integrate initiativesfor targeted communities and activities for POIC employees towards achievementof the goals and sustaining program focusing on environment protection and

. I

community development.

3. Project Milestones: (see dftachedTdt5leas of September 30,.2016)

4. Measures Affected:I

strategic Measure 3: Conduct Public Awareness campaign among new targetgroups for financial inclusion

P~pa~db~ Ncledb~

VP,

. laret;·Jr.· -r:ate.Affairs Group

t !t.rf1)O~b t ...=~ria~ u e a '.. ..President

III

Implementation of Medium- Term Corporate Social Responsibility (CSR) Program,II I

Activities Timeline Budget Funding status

start End Source

l. Organization of the Ad Hoc Q12016 Q12016 - Corporate Deferred until the revised CSRCommittee I Operating framework has been designed

I

Budget (COB)! I

2. !Conduct of Pre-Planning Activity Q12016 Q22016 - COB Completed documentation of

a. Assessment of Past Performance the PDIC-GK Village Project andsummarized features of CSR

b. Survey of CSR Programs of ,programs of selected GOCCs for

GOCCs , consideration in designing CSRI program for PDIC

i c. Clarification of Corporate I

i statements on CSR ,I I

3. I Conduct of Pklnning Workshop - Q22016 Q22016 P500,000.00 - COB - Draft framework of CSR programI !

presented to Management in Q3I (Ad Hoc Committee/Stakeholders) ! but recommended to be revisedI

4. Presentation of Proposed CSR Q32016 Q3,2016 P20,000.00 COB to allow greater employeeProgram to Stakeholders for I

participation. Held consultationsIComments I with employees through the,

5. Revision of Proposed CSR Program Q32016 Q42016 - COB Officers' Club and PHltDICEO tobased on comments and discuss framework to considerSubmission for Approval Management's recommendation.

I Also consulted with League of,

Corporate Foundations to learnI from the implementation

framework of other corporations.The revised framework of CSR is

, scheduled for presentation toManagement by Q4.

6. launching of the Approved CSR Q42016 Q42016 PSO,OOO.OO COB Rescheduled to Ql 2017Program

7. i Implementation of CSR Program Q12017 Q42020 For estimation COBI,

I

8. Evaluation of CSR Program Q42017 Q42017 For estimation COB(Annual) Q42018 Q42018a. Conduct of Evaluation Meetings

I

Q42019 Q42019with Stakeholders i

I

b. Review of CSR Program for Next I,Year's Implementation !

iI I

'.