PHILIPPINE DEPOSIT

INSURANCE CORPORATION
What is the Philippine Deposit
Insurance Corporation (PDIC)?

PDIC is a government instrumentality created

in 1963 by virtue of Republic Act 3591 to
insure the deposits of all banks which are
entitled to the benefits of insurance
What is PDICs overall mandate

PDIC exists to provide permanent and

continuing deposit insurance coverage for the
depositing public to help promote public
confidence and stability in the economy
What are the functions of PDIC?

Deposit Insurer
Co-regulator of Banks
Receiver and Liquidator of Closed Banks
 What is PDICs maximum
deposit insurance coverage?

Effective June 1, 2009, the maximum deposit

insurance coverage is P500,000 per depositor
 What is an insured deposit?

means the amount due to any bona fide

depositor for legitimate deposits in an insured
bank net of any obligation of the depositor to
the insured bank as of date of closure, but not
to exceed P500,000.00.
 What types of deposits are
insured by PDIC?
deposits of all commercial banks, savings and mortgage
banks, rural banks, private development banks,
cooperative banks, savings and loan associations, as well
as branches and agencies in the Philippines of foreign
banks and all other corporations authorized to perform
banking functions in the Philippines, are insured with PDIC.
As for Philippine banks with branches outside the country,
RA 9576 stipulates that subject to the approval of the
Board of Directors, any insured bank with branch outside
the Philippines may elect to include for insurance its
deposit obligations payable at such branch.
Foreign currency deposits
 Exclusions from deposit
insurance coverage as
stipulated in R.A. No. 9576:
Investment products such as bonds, securities and trust
accounts;
Deposit accounts which are unfunded, fictitious or
fraudulent;
Deposit products constituting or emanating from unsafe
and unsound banking practices;
Deposits that are determined to be proceeds of an unlawful
activity as defined under the Anti-Money Laundering Law.
Are all banks members of PDIC?

Membership of banks to PDIC is mandatory;

 What specific risks to a bank
does PDIC cover?

PDIC covers only the risk of a bank closure

ordered by the Monetary Board. Thus, bank
losses due to theft, fire, closure by reason of
strike or existence of public disorder,
revolution or civil war, are not covered by
PDIC.
 Shall the depositor pay any
insurance premium to PDIC?

No. Insurance premium is paid by the banks,

not by the depositors. The bank is assessed
1/5 of 1% per annum of the assessment base
of the bank.
 How is insurance coverage
determined?
In determining the insured amount, the
outstanding balance of each account is adjusted,
such that interests are updated, withholding
taxes are deducted, accounts maintained by a
depositor in the same right and capacity are
added together; and whenever applicable,
unpaid loans and other obligations of the
depositor are deducted; and in no case shall
insured deposit exceed P500,000.
 Can PDIC insurance
coverage be increased by
having several accounts in
the same name in an
insured bank?

No. Deposit insurance coverage is not

determined on a per-account basis. The type
of account (whether checking, savings, time
or other form of deposit) has no bearing on
the amount of insurance coverage.
 If I have deposits in several
different insured banks, will my
deposits be added together for
insurance purposes?

No. Deposits in different banking institutions are

insured separately. However, if a bank has one or
more branches, the main office and all branch
offices are considered as one bank. Thus, if you have
deposits at the main office and at one or more
branch offices of the same bank, the deposits are
added together when determining deposit insurance
coverage, the total of which shall not exceed
P500,000.
Is there a need for a depositor
to file his claim for insured
deposit with PDIC?
Yes. Depositors will be advised through the
national and/or local media and posters at the
premises of the closed insured bank and other
public places within the locality on the
schedule of distribution of claim forms by
PDIC, receiving of claim forms by PDIC, and
the prescriptive date of filing claims by the
depositors
 When should the depositor of a
closed insured bank file his claim
with PDIC?

The depositor of the closed insured bank has

24 months from date of bank takeover to file
his deposit insurance claim.
What happens when the depositor
of a closed bank fails to file his
claim within the 24-month period

All rights of the depositor with respect to the

insured deposit shall no longer be honored.
But he may still make a claim against the
assets of the closed bank.
 How long does it take PDIC to
settle a claim for insured
deposit?
PDIC aims to pay valid claims as soon as possible. Prior to payout,
claims are examined thoroughly. This is to protect the Deposit
Insurance Fund (DIF) which is the source of insurance payments.
Sometimes, depositors mistakenly assume that the payouts are
sourced from their deposits. This is not the case. The payouts are
from PDICs own funds.
The claim for insured deposit should be settled within six (6)
months from the date of filing provided all requirements are met
but the claim must be filed within twenty-four (24) months after
bank takeover. The six-month period shall not apply if the
documents of the claimant are incomplete or if the validity of the
claim requires the resolution of issues of facts and law by another
office, body or agency, independently or in coordination with PDIC.
If the deposit account in a closed bank is
more than P500,000.00, what happens
to the excess of the maximum amount of
insured deposit?

If the closed bank is not rehabilitated or taken over by

another bank, amount in excess of the P500,000 coverage
can still be claimed upon the final liquidation of the
remaining assets of the closed bank.
The claim may be filed with the Liquidator of the closed
bank but payment of the said claim will depend on the
bank's available assets to settle its preferred claims
(Government taxes, labor claims, secured credits and trust
funds) and approval of the Liquidation Court. The schedule
of payment beyond the P500,000.00 maximum insurance
shall be based on priorities set by law.