Philippine Deposit Insurance Corporation Act (PDIC)

RA 3591

1. Basic Policy
The Philippine Deposit Insurance Corporation shall, as a basic policy, promote and safeguard the
interests of the depositing public by providing insurance coverage on all insured deposits and helping
maintain a sound and stable banking system. [Sec. 1, PDIC Charter, as amended by R.A. No. 10846]

2. Powers and functions of the PDIC; prohibitions

Board of Directors The powers and functions of PDIC shall be vested in, and exercised by, a
Board of Directors which shall be composed of 7 members as follows:
(a) The Secretary of Finance shall be the ex officio chairman of the Board without compensation

(b) The Governor of the Bangko Sentral ng Pilipinas (“BSP”) who shall be ex officio member of the
Board without compensation. [PDIC Charter, as amended by R.A. No. 9302]

(c) The President of PDIC

• The President of PDIC shall be appointed by the President of the Philippines from a shortlist
prepared by the Governance Commission for Government Owned or Controlled Corporations
(“GOCCs”), pursuant to R.A. 10149
• The President of PDIC shall serve on a full-time basis for a term of 6 years.
• The President of PDIC shall also serve as the Vice Chairman of the Board. [PDIC Charter, as
amended by R.A. No. 10846]

(d) 4 members from the private sector

a. The members are to be appointed by the President of the Philippines from a shortlist prepared
by the Governance Commission for GOCCs pursuant to R.A. 10149.

• The appointive directors shall serve for a term of 6 years unless sooner removed for cause and
shall be subject to only 1 reappointment: Provided, that –

(1) Of those first appointed, the first 2 appointees shall serve for a period of 3 years
(2) The appointive director shall continue to hold office until the successor is appointed.

• An appointive director may be nominated by the Governance Commission for GOCCs for
reappointment by the President

(3) Only if one obtains a performance score of above average or its equivalent or higher in the
immediately preceding year of tenure as appointive director

(4) Based on the performance criteria for appointive directors of PDIC. [Sec. 3, PDIC Charter, as
amended by R.A. No. 10846]

Appointment to any vacancy shall be only for the unexpired term of the predecessor pursuant to R.A.
10149. [PDIC Charter, as amended by R.A. No. 10846]

3. Powers and Functions of PDIC

(a) PDIC shall be entitled to the free use of Philippine mail in the same manner as the other offices of the
national government.
(b) The Board of Directors shall appoint examiners who shall have power, on behalf of PDIC, to examine
any insured bank or any bank making application to become an insured bank
• Each such examiner shall have power to make a thorough examination of all the affairs of the
bank
• In doing so the examiner shall have power:

(5) To administer oaths;

(6) To examine and take and preserve the testimony of any of the officers and agents thereof; and

(7) To compel the presentation of books, documents, papers, or records necessary in his
judgment to ascertain the facts relative to the condition of the bank • The examiner shall make a full and
detailed report of the condition of the bank to PDIC.

(c) The Board of Directors shall appoint claim agents who shall have power to investigate and examine
all claims for insured deposits and transferred deposits. Each claim agent shall have power –
• To administer oaths; and
• To examine under oath and take and preserve the testimony of any person relating to such
claims.

(d) PDIC may appoint or hire persons or entities of recognized competence in forensic and fraud
investigations as its agents to conduct investigations on frauds, irregularities and anomalies committed in
banks, based on:
• Reports of examination conducted by PDIC and BSP; or • Complaints from depositors or from
other government agency.

(e) PDIC shall have access to reports of examination made by, and reports of condition made to the BSP
or its appropriate supervising departments, Provided That –
• PDIC shall use the reports and findings under similar terms and conditions prescribed by
applicable laws on the BSP. [Sec. 10, PDIC Charter, as amended by R.A. 7400, R.A. 9302, and R.A.
10846]

4. Prohibitions
Personnel of PDIC are hereby prohibited from:
a. Being an officer, director, consultant, employee or stockholder, directly or indirectly, of any
bank or banking institution except as otherwise provided in the PDIC Charter;
• Exception: Members of the Board of Directors and other personnel of PDIC may become
directors and officers of any bank and banking institution and of any entity related to such institution –
1. In connection with financial assistance extended by PDIC to such institution; and
2. When in the opinion of the Board, it is appropriate to make such a designation to protect the
interest of PDIC
3. Receiving any gift or thing of value from any officer, director or employee thereof:
4. Revealing in any manner, except under order of the court or authorized herein in such
condition or business of any such institution.
• The prohibition shall not be held to apply to the giving of information to the Board of Directors
or to any person authorized by neither of them in writing to receive such information. [Sec. 10, PDIC
Charter, as amended by R.A. 7400 and R.A. 10846]

5. Prohibition on Borrowing From Institutions under Examination

 Borrowing from the particular bank or banking institution in which they are assigned, or are conducting
an examination by the ff. is prohibited:
• Examiners; and
• Other personnel of the examination departments of PDIC

6. From Institutions Undergoing any Action

General Rule: All personnel of other departments, offices or units of PDIC shall likewise be prohibited
from borrowing from any bank or banking institution during the period of time that a transaction of such
institution with the corporation is being:
1. Evaluated,
2. Processed; or
3. Acted upon by such personnel

Exception: Certain personnel may be exempted from the prohibition, as the Board may, at its discretion,
indicate the position levels or functional groups to which the prohibition is applicable.

7. From Any Institution

Borrowing by all full-time personnel of PDIC from any bank or banking institution shall be:
a) Secured and disclosed to the Board; and
b) Subject to such further rules and regulations as the Board may prescribe. [Sec. 10, PDIC
Charter, as amended by R.A. 7400 and R.A. 10846]

8. Concept of insured deposits

Insured Deposit The term “insured deposit” means the amount due to any bona fide depositor for
legitimate deposits in an insured bank as of the date of closure but not to exceed P500,000.00.

Adjusting the Maximum Deposit Insurance Cover

The maximum deposit insurance coverage is Five hundred thousand pesos (P500,000.00).
However, in case of a condition that threatens the monetary and financial stability of the banking system
that may have systemic consequences, as defined in Section 22 of the PDIC Charter, as determined by the
Monetary Board, the maximum deposit insurance cover may be adjusted –
• In such amount,
• For such a period, and/or
• For such deposit products, - As may be determined by a unanimous vote of the Board of
Directors in a meeting called for the purpose, chaired by the Secretary of Finance - Subject to the
approval of the President of the Philippines. [Sec.5(j)]

9. Liability to depositors
Deposit liabilities required to be insured with the PDIC
General Rule: The deposit liabilities of any bank shall be insured with PDIC. [Sec. 6, PDIC Charter, as
amended by R.A. 10846]

Foreign currency deposits are also insured by PDIC pursuant to R.A. 6426 (“An act instituting a foreign
currency deposit system in the Philippines, and for other purposes”).
Depositors may receive payment in the same currency in which the insured deposit is denominated. [Sec.
9, R.A. 6426]

Exception: Deposits in overseas branches of local banks are not insured with PDIC, as PDIC insurance
only covers deposits in banks located in the Philippines.
However, any insured bank with a branch outside the Philippines, subject to the approval of the Board of
Directors, may elect to include for insurance its deposit obligations payable at such branch. [Sec. 5 (g),
PDIC Charter, as amended by R.A. 9576 and R.A. 10846]

10.Commencement of liability
PDIC shall commence the determination of insured deposits due the depositors of a closed bank upon its
actual takeover of the closed bank.
PDIC shall give notice to the depositors of the closed bank of the insured deposits due them by whatever
means deemed appropriate by the Board of Directors: Provided, That –
a. PDIC shall publish the notice once a week for at least three (3) consecutive weeks in a
newspaper of general circulation; or
b. When appropriate, it shall be published in a newspaper circulated in the community or
communities where the closed bank or its branches are located. [Sec. 18, R.A. 9302]

11. Deposit accounts not entitled to payment

PDIC shall not pay deposit insurance for the following accounts or transactions:
a. Investment products such as bonds and securities, trust accounts, and other similar instruments;
b. Deposit accounts or transactions which are fictitious or fraudulent, as determined by PDIC;
c. Deposit accounts or transactions constituting, and/or emanating from, unsafe and unsound
banking practice/s
a. As determined by PDIC, in consultation with the BSP;
b. After due notice and hearing, and publication of a cease and desist order issued by
PDIC against such deposit accounts or transactions; and d. Deposits that are determined to be the
proceeds of an unlawful activity as defined under the Anti-Money Laundering Act (Republic Act 9160, as
amended). [Sec. 5(g), PDIC Charter, as amended by R.A. 9576 and R.A. 10846]

Funds placed in the Manila Branch by the head office or the latter’s other offshore branches are not third-
party deposits that are insurable with PDIC, since the Manila Branch and its head office and such other
branches comprise only one juridical entity; hence, there is no depositary-depositor relationship between
or among them [PDIC v. Citibank, N.A., 669 SCRA 191 (2012)].

12. Extent of liability

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.

13. Determination of insured deposits

The amount of the insured deposit shall be determined according to such regulations as the Board of
Directors may prescribe.
In determining such amount due to any depositor, there shall be added together all deposits in the bank
maintained in the same right and capacity for his or her benefit either in his or her own name or in the
name of others. [Sec. 5(j)]

In PDIC v. Gidwani, 867 SCRA 581 (2018), Gidwani used his helpers and rank-and-file employees to
create several deposit accounts ostensibly held by them but actually beneficially owned by him, for the
purpose of increasing his deposit insurance cover. The Supreme Court held that “the entitlement to a
deposit insurance is based not on the number of bank accounts held, but on the number of beneficial
owners.” In this case, there was only one beneficial owner of the several bank accounts (namely,
Gidwani); hence, he was only entitled to P250,000 (then the maximum deposit insurance cover under the
PDIC Charter) for all the deposit accounts.
Note: No owner/holder of any passbook, certificate of deposit or other evidence of deposit shall be
recognized as a depositor entitled to the rights provided in the PDIC Charter unless the same is
determined by PDIC to be an authentic document or record of the issuing bank. [Sec. 5(j)]

14. Calculation of liability

i. Per depositor, per capacity rule In determining such amount due to any depositor, there shall be
added together all deposits in the bank maintained in the same right and capacity for his or her benefit
either in his or her own name or in the name of others. [Sec. 3, R.A. 9576]
ii. Joint accounts A joint account regardless of whether the conjunction ‘and’, ‘or’, ‘and/or’ is
used, shall be insured separately from any individually- owned deposit account: Provided, That –
The aggregate of the interest of each co-owner over several joint accounts, whether owned by the same or
different combinations of individuals, juridical persons or entities, shall likewise be subject to the
maximum insured deposit of P500,000.00. [Sec. 5(j)]

Holder of Account Division of Maximum Insured Deposit

If the account is held jointly by two or more natural
persons, or by two or more juridical persons or
entities
If the account is held by a juridical person or entity
jointly with one or more natural persons
GR: The maximum insured deposit shall be divided
into as many equal shares as there are individuals,
juridical persons or entities.
EX: Unless a different sharing is stipulated in the
document of deposit
The maximum insured deposit shall be presumed to
belong entirely to such juridical person or entity.

15. Mode of payment

Whenever an insured bank shall have been closed by the Monetary Board pursuant to Section 30 of R.A.
7653, payment of the insured deposits on such closed bank shall be made by PDIC as soon as possible
either:
(a) by cash; or
(b) by making available to each depositor a transferred deposit in another insured bank in an amount
equal to insured deposit of such depositor.

Provided, however, That PDIC, in its discretion, may:

1. Require proof of claims to be filed before paying the insured deposits; and
2. Require final determination of a court of competent jurisdiction before paying such claim, in any case
where PDIC is not satisfied as to the viability of a claim for an insured deposit. [Sec. 19, PDIC Charter, as
amended by R.A. 10846]

16. Effect of payment of insured deposits

PDIC, upon payment of any depositor, shall be subrogated to all rights of the depositor against the closed
bank to the extent of such payment.
Such subrogation shall include the right on the part of PDIC to receive the same dividends and payments
from the –
1. Proceeds of the assets of such closed bank; and
2. Recoveries on account of stockholders’ liability, as would have been payable to the depositor
on a claim for the insured deposits.

Note: However, such depositor shall retain his claim for any uninsured portion of his deposit. [Sec. 20,
PDIC Charter, as amended by R.A. 10846]

17. Payment of insured deposits as preferred credit

All payments by PDIC of insured deposits in closed banks –
 1. Partake of the nature of public funds; and
2. As such, must be considered a preferred credit similar to taxes due to the National Government
in the order of preference under Article 2244 of the New Civil Code
a. This preference shall be likewise effective upon liquidation proceedings already commenced
and pending as of the approval of the PDIC Charter, where no distribution of assets has been made [Sec.
20, PDIC Charter, as amended by R.A. 10846].
b. Note: Taxes due to the National Government are ranked 9th out of the 14 enumerated ordinary
preferred credits under Art. 2244

18. Implications of Status as Ordinary Preferred Credit

(1) Ordinary preferred credits enjoy a preference, excluding the credits that are later in order, but only as
against the value of the property not otherwise subjected to any special preferred credit.
(2) Does not create a lien on specific property;
(3) Creates rights in favor of certain creditors to have the free property of the debtor applied in
accordance with an order of preference. [Art. 2244, NCC; Somera]

19. Failure to settle claim of insured depositor

General Rule: The failure to settle the claim, within six (6) months from the date of filing of claim for
insured deposit, shall, upon conviction, subject the directors, officers or employees of PDIC responsible
for the delay, to imprisonment from six (6) months to one year, where such failure was due to –
1. Grave abuse of discretion,
2. Gross negligence,
3. Bad faith, or
4. Malice

Exception: The six-month period shall not apply if the validity of the claim requires the resolution of
issues of facts and or law –
1. By another office, body or agency; or
2. By PDIC together with such other office, body or agency [Sec. 19, PDIC Charter, as amended
by R.A. 10846]
20. Failure of depositor to claim insured deposits
If the depositor in the closed bank shall fail to claim his insured deposits with PDIC within two (2) years
from actual takeover of the closed bank by the receiver, or does not enforce his claim filed with the
corporation within two (2) years after the two-year period to file a claim:
(a) All rights of the depositor against PDIC with respect to the insured deposit shall be
barred;
(b) However, all rights of the depositor against the closed bank and its shareholders or the
receivership estate to which PDIC may have become subrogated, shall thereupon revert to the depositor.
(c) Thereafter, PDIC shall be discharged from any liability on the insured deposit. [Sec. 18, R.A.
9302]

Note: PDIC may waive the abovementioned two-year period.

21. Power to Conduct Examination of Banks

PDIC, as a corporate body, shall have the power to conduct examination of banks with prior approval of
the Monetary Board, Provided, That – - No examination can be conducted within twelve (12) months
from the last examination date; - However, PDIC may conduct a special examination, in coordination
with the BSP, as the Board of Directors:
a. By an affirmative vote of a majority of all of its members; and
b. If there is a threatened or impending closure of a bank [Sec. 9(8), PDIC Charter, as amended
by R.A. 9576 and R.A. 10846]
22. Power to Inquire into Deposit Accounts
PDIC and/or the BSP, may inquire into or examine deposit accounts and all information related thereto
1. In case there is a finding of unsafe or unsound banking practice
2. Notwithstanding the provisions of:
a. Republic Act No. 1405, as amended
b. Republic Act No. 6426, as amended,
c. Republic Act No. 8791, and
d. Other laws

To avoid overlapping of efforts, the examination of banks and deposit accounts shall maximize the
efficient use of the relevant reports, information, and findings of the BSP, which it shall make available to
PDIC. [Sec. 9(8), PDIC Charter, as amended by R.A. 9576 and R.A. 10846]

23. Refusal to Permit Examination

Any unjustified refusal to permit examination and audit of the deposit records or the affairs of the
institution shall, at the discretion of the court, be punished by imposing upon any director, officer,
employee or agent of a bank:
(a) The penalty of imprisonment of not less than six (6) years but not more than twelve (12)
years; or
(b) A fine of not less than Fifty thousand pesos (P50,000.00) but not more than Two million
pesos (P2,000,000.00); or
(c) Both imprisonment and the fine. [Sec. 26(f)(1)(b), PDIC Charter, as amended by R.A. 10846]

24. Splitting of Deposits

Occurs whenever a deposit account with an outstanding balance of more than the statutory maximum
amount of insured deposit, maintained under the name of natural or juridical persons, is broken down and
transferred into two or more accounts –
In the name/s of natural or juridical persons or entities who have no beneficial ownership on transferred
deposits in their names; Either:
- Within one hundred twenty (120) days immediately preceding a bank holiday; or
- During a bank-declared bank holiday, or
- Within one hundred twenty (120) days immediately preceding a closure order issued by the Monetary
Board of the BSP for the purpose of availing of the maximum deposit insurance coverage. [Sec. 26(f)(1)
(e), PDIC Charter, as amended by R.A. 10846]

25. Penalty for Splitting of Deposits

The splitting of deposits or creation of fictitious or fraudulent loans or deposit accounts shall, at the
discretion of the court, be punished by imposing upon any director, officer, employee or agent of a bank:
(a) The penalty of imprisonment of not less than six (6) years but not more than twelve (12)
years; or
(b) A fine of not less than Fifty thousand pesos (P50,000.00) but not more than Two million
pesos (P2,000,000.00); or
(c) Both imprisonment and the fine. [Sec. 26(f)(1)(e), PDIC Charter, as amended by R.A. 10846]

Role of the PDIC in relation to banks in distress

A. Closure and takeover

Whenever a bank is ordered closed by the Monetary Board, the Corporation shall:
(1) Be designated as receiver; and
(2) Proceed with the takeover and liquidation of the closed bank in accordance with the PDIC Charter.

B. Designation of PDIC as Receiver

Upon the designation of PDIC as receiver of a closed bank, it shall:
(1) Serve a notice of closure to the highestranking officer of the bank present in the bank premises; or
(2) Post the notice of closure in the bank premises or on its main entrance, in the absence of such
officer.
(2) Closure and Takeover of Bank The closure of the bank shall be deemed effective upon the service
of the notice of closure.

Thereafter, the receiver shall takeover the bank and exercise the powers of the receiver as
provided in the PDIC Charter. [Sec.14(a), PDIC Charter, as amended by R.A. No. 10846]

C. Conservatorship

Grounds for Appointment of a Conservator

Whenever, on the basis of a report submitted by the appropriate supervising or examining

department, the Monetary Board finds that a bank or quasi-bank is: a) In a state of continuing
inability; or b) Unwilling to maintain a condition of liquidity deemed adequate to protect the
interest of depositors and creditors. [Sec. 29, R.A. 7653, as amended] The designation of a
conservator shall be vested exclusively in the Monetary Board. [Sec. 30, R.A. 7653, as amended]

Qualifications of a Conservator
The conservator should be:
(1) Competent and knowledgeable in bank operations and management;
(2) A natural person to be appointed by the Monetary Board. In contrast, the receiver is generally
the PDIC.

D. Liquidation
The receiver is authorized to adopt and implement, without need of consent of the stockholders,
board of directors, creditors or depositors of the closed bank, any or a combination of the
following modes of liquidation:
(a) Conventional liquidation; and
(B) Purchase of assets and/or assumption of liabilities [Sec.13(a), PDIC Charter, as amended by
R.A. No. 10846]

The placement of a bank under liquidation shall have the following effects:
(1) On the corporate franchise or existence:
Upon placement by the Monetary Board of a bank under liquidation, it shall continue as a
body corporate until the termination of the winding-up period under Section 16 of the PDIC
Charter. - The receiver shall represent the closed bank in all cases by or against the closed
bank and prosecute and defend suits by or against it. - In no case shall the bank be reopened
and permitted to resume banking business after being placed under liquidation.
(2) On the powers and functions of its directors, officers and stockholders:
The powers, voting rights, functions and duties, as well as the allowances, remuneration and
perquisites of the directors, officers, and stockholders of such bank are terminated upon its
closure. - Accordingly, the directors, officers, and stockholders shall be barred from
interfering in any way with the assets, records, and affairs of the bank. - The receiver shall
 exercise all authorities as may be required to facilitate the liquidation of the closed bank for
the benefit of all its creditors.
(3) On the assets:
Upon service of notice of closure as provided in Section 14 of the PDIC Charter, all the assets
of the closed bank shall he deemed in custodia legis in the hands of the receiver, and as such,
these assets may not be subject to attachment, garnishment, execution, levy or any other court
processes. - A judge, officer of the court or any person who shall issue, order, process or
cause the issuance or implementation of the garnishment order, levy, attachment or execution,
shall be liable under Section 27 of the PDIC Charter. - Collaterals securing the loans and
advances granted by the BSP shall not be included in the assets of the closed bank for
distribution to other creditors. The proceeds in excess of the amount secured shall be returned
by the BSP to the receiver. - Any preliminary attachment or garnishment on any of the assets
of the closed bank existing at the time of closure shall not give any preference to the attaching
or garnishing party. - Upon motion of the receiver, the preliminary attachment or garnishment
shall be lifted and/or discharged.
(4) On labor relations:
Notwithstanding the provisions of the Labor Code, the employer-employee relationship
between the closed bank and its employees shallbe deemed terminated upon service of the
notice of closure of the bank in accordance with the PDIC Charter. - Payment of separation
pay or benefits provided for by law shall be made from available assets of the bank in
accordance with the Rules on Concurrence and Preference of Credits under the Civil Code or
other laws
(5) On contractual obligations:
The receiver may cancel, terminate, rescind or repudiate any contract of the closed bank - If
the contract is not necessary for the orderly liquidation of the bank; or - If the contract is
grossly disadvantageous to the closed bank; or - For any ground provided by law.
(6) On interest payments:
The liability of a bank to pay interest on deposits and all other obligations as of closure shall
cease upon its closure by the Monetary Board without prejudice to the first paragraph of
Section 85 of Republic Act No. 7653 (the New Central Bank Act). - The receiver shall have
the authority, without need for approval of the liquidation court, to assign, as payment to
secured creditors, the bank assets serving as collaterals to their respective loans up to the
extent of the outstanding obligations, including interest as of date of closure of the hank, as
validated by the receiver. - The valuation of the asset shall be based on the prevailing market
value of he collaterals as appraised by an independent appraiser on an ‘as is where is’ basis.
(7) On liability for penalties andsurcharges for late payment and nonpayment of taxes:
From the time of closure, theclosed bank shall not be liable for the payment of penalties and
surcharges arising from the late payment or nonpayment of real property tax, capital gains
tax, transfer tax and similar charges.
(8) On bank charges and fees:
The receiver may impose, on behalf of the closed bank, charges and fees for services
rendered after bank closure, such as, but not limited to, the execution of pertinent deeds and
certifications.
(9) Actions pending for or against the closed bank:
Except for actions pending before the Supreme Court, actions pending for or against the
closed bank in any court or quasi-judicial body shall, upon motion of the receiver: - Be
suspended for a period not exceeding one hundred eighty (180) days; - Referred to mandatory
mediation; and - Referred back to the court or quasijudicial body for further proceedings
upon termination of the mediation.
(10) Final decisions against the closed bank:
 The execution and enforcement of a final decision of a court other than the liquidation court
against the assets of a closed bank shall be stayed. The prevailing party shall file the final
decision as a claim with the liquidation court and settled in accordance with the Rules on
Concurrence and Preference of Credits under the Civil Code or other laws.
(11) Docket and other court fees:
Payment of docket and other court fees relating to all cases or actions filed by the receiver
with any judicial or quasi-judicial bodies shall be deferred until the action is terminated with
finality. - Any such fees shall constitute as a first lien on any judgment in favor of the closed
bank or in case of unfavorable judgment, such fees shall be paid as liquidation costs and
expenses duringhe distribution of the assets of the closed bank.
(12) All assets, records, and documents in the possession of the closed bank at the time of its
closure are presumed held by the bank in the concept of an owner.
(13) The exercise of authority, functions, and duties by the receiver under this Act shall be
presumed to have beenperformed in the regular course of business.
(14) Assets and documents of the closed bank shall retain their private nature even if
administered by the receiver. Matters relating to the exercise by the receiver of the functions
under this Act shall be subject to visitorial audit only by the Commission on Audit. [Sec.
13(e), PDIC Charter, as amended by R.A. 10846]

R.A 9567
 AN ACT INCREASING THE MAXIMUM DEPOSIT INSURANCE COVERAGE,
 STRENGTHEN THE REGULATORY AND ADMINISTRATIVE AUTHORITY, AND
FINANCIAL CAPABILITY OF THE PHILIPPINE DEPOSIT INSURANCE
CORPORATION (PDIC)
 AMENDING FOR THIS PURPOSE REPUBLIC ACT 3591, AS AMENDED, OTHERWISE
KNOWN AS THE PDIC CHARTER, AND FOR OTHER PURPOSES

SUMMARY of R.A 9567

 Increased the maximum deposit insurance coverage to 500,000.00

 Includes important provisions to ensure that the PDIC remains financially and
institutionally strong to fulfill its mandate under its Charter
 PDIC has authority to determine which deposit products are covered by the
insurance
 Exemption from taxes and the authority to issue sovereign bonds, debentures and
other debt issuance
 PDIC covers only the risk of 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.