Philippine Deposit Insurance Corporation Law

what is the purpose of PDIC?

• it enhances the resolution and liquidation framework for banks

• the PDIC shall, as a basic policy, promote and safeguard the interests of the depositing public by providing permanent and continuing insurance coverage on all insured deposits, and

• helping maintain a sound and stable banking system

what are the main functions of PDIC?

1. deposit insurer

2. co-regulator of BSP over banking institutions

3. receiver and liquidator of closed banks

what are the public policy objectives of PDIC?

1. depositor protection

2. financial stability

what is deposit insurance?

is a government policy and a financial safety net to protect depositors and help promote financial stability.

it guarantees that depositors will receive their hard-earned savings in banks up to the MDIC if their bank fails.

it not only protects depositors but also prevents bank runs during financial crisis, and helps maintain public confidence in the banking system.

what is “deposit”?

The unpaid balance of money or its equivalent received by a bank in the

usual course of business and for which it has given or is obliged to give credit to a commercial, checking, savings, time or thrift account

what is “insured deposit”?

The amount due to any bona fide depositor (in good faith) for legitimate

deposits in an insured bank

what is the maximum deposit insurance coverage? (MDIC)

1,000,000 effective on march 15, 2025

what are the deposits covered by PDIC deposit insurance? by deposit type?

1. savings

2. special savings

3. negotiable order of withdrawal (NOW)

4. time deposits

5. demand / checking

what are the deposits covered by PDIC deposit insurance? by deposit account?

1. single account

2. joint account

3. account by

4. account in trust for (ITF)

5. for account of (FAO) another person

what are the deposits covered by PDIC deposit insurance? by currency?

1. philippine peso

2. foreign currencies considered as part of BSP’s international reserves

are deposits in foreign currencies also covered by MDIC?

yes, provided for by RA 6426 and central bank circular no. 1389

what is a single account? and its rules?

what is the compensation or set-off in relation to computing insured deposits?

what are not covered by PDIC deposit insurance?

• other products of banks

  • investment products such as bonds, securities, and trust accounts

  • deposit accounts or transactions which are 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

• deposits in non-banks such as cooperatives and non-stock savings and loan associates

are all banks covered by deposit insurance?

yes. all banking institutions licensed to operate as such by the BSP are members of the PDIC

who are required to file (deposit insurance) claims?

1. Depositors with valid deposit accounts with balances of more than P 100,000

2. Depositors with outstanding obligations with the bank, either as borrower, co-maker, or spouse of borrower

3. Depositors with incomplete mailing address found in the bank records, or failed to update them through the Mailing Address Update Form (MAUF)

4. Depositors with accounts under the names of unregistered entities or associations

5. Depositors with accounts not eligible for early payment, regardless of type of account and account balance; or

6. Depositors who are deceased, whose filing of claims is through the legal heirs

what are the documents required in support of the (deposit insurance) claim?

1. Completely filled-out PDIC Claim Form which may be downloaded or can be accessed through the PDIC website which needs to be signed and notarized.

2. Original evidence of deposit

3. 2 valid photo-bearing IDs with signature of the depositor/claimant

4. Photocopy of his/her birth certificate from the NSO or duly certified copy from the local civil registrar and valid IDs of the parent if the depositor is below 18 yrs old

5. Original copy of a notarized Special Power of Attorney (SPA) for claimants who are not the signatories in the bank record. In the case of a minor depositor, the SPA must be executed by the parent

who should sign the claim form?

1. depositor of the account for 18 YO and above

2. parent of depositor if below 18

3. agent in the case of “by” account

4. trustee if “ITF” account

5. each depositor or account holder for account maintained as “or”, “and/or”, or “and” in the case of joint accounts

6. authorized representatives for:

   1. business entities

   2. deceased depositors, and

   3. persons who have special power of attorney from the depositor

what is a joint account and its rules?

what are “by”, “ITF”, and “FAO” accounts and its rules?