PDIC

Philippine Deposit Insurance Corporation (PDIC)

A government instrumentality established by Republic Act 3591 to insure deposits of eligible banks and promote financial stability.

Insured Deposits

Legitimate deposits in an insured bank, net of any obligations, up to a maximum of P500,000, covering various types of accounts like savings, time deposits, and foreign currency deposits.

Deposit Insurance Coverage Adjustment

The amount of coverage may be adjusted under specific conditions to safeguard the banking system's monetary and financial stability.

Systemic Risk

The risk of one bank's failure triggering a chain reaction affecting other banks, potentially leading to a general shutdown of normal clearing and settlement activities.

Splitting of Deposit

A criminal act where a deposit account exceeding P500,000 is divided into multiple accounts to maximize deposit insurance coverage, punishable by imprisonment or fines.

Per Depositor, Per Capacity Rule

All deposits in the same right and capacity for the depositor's benefit are combined to determine the insured amount, including individual and joint accounts.

Claims Settlement Operations

The process where depositors file claims for insured deposits, with specific requirements for depositors based on their account balances and obligations with the closed bank.

Modes of Payment

PDIC can pay insured deposits in cash or transfer them to another insured bank, with provisions for withholding payment for certain liabilities and subrogation of rights to PDIC upon payment.

Insured Deposit Payment

Payment made by PDIC to any person, discharging PDIC from liability, similar to payment by the closed bank.

Preference of Insured Deposits

Payments by PDIC considered as preferred credit, akin to taxes owed to the National Government, in the order of preference under NCC.

Settlement Period

PDIC required to settle claims within 6 months from the date of filing.

Consequences of Delay

Failure to settle within 6 months due to specific reasons may lead to imprisonment for directors, officers, or employees responsible.

Exception to Settlement Period

Period not applicable if claim validity requires resolution by another office, body, or agency.