What is the Philippine Deposit Insurance

Corporation (PDIC)?
PDIC EXISTS TO PROTECT DEPOSITORS BY PROVIDING DEPOSIT INSURANCE
COVERAGE FOR THE DEPOSITING PUBLIC AND HELP PROMOTE FINANCIAL
STABILITY.

PDIC IS A GOVERNMENT INSTRUMENTALITY CREATED IN 1963 BY VIRTUE OF

REPUBLIC ACT 3591 TO PROVIDE DEPOSITOR PROTECTION AND PROMOTE
FINANCIAL STABILITY. IT IS AN ATTACHED AGENCY OF THE DEPARTMENT OF
FINANCE.

THE PDIC’S CORE MANDATES ARE DEPOSIT INSURANCE AND LIQUIDATION OF

CLOSED BANKS.
What is PDIC’s overall
mandate?
• PDIC EXISTS TO PROVIDE DEPOSIT INSURANCE COVERAGE FOR THE
DEPOSITING PUBLIC TO HELP PROMOTE PUBLIC CONFIDENCE AND
STABILITY IN THE ECONOMY.

• IT ENSURES PROMPT PAYMENT OF INSURED DEPOSITS, EXERCISES

COMPLEMENTARY SUPERVISION OF BANKS, ADOPTS RESPONSIVE
RESOLUTION METHODS, AND APPLIES EFFICIENT MANAGEMENT OF
RECEIVERSHIP AND LIQUIDATION FUNCTIONS.
What are the functions of
PDIC?
• Deposit Insurer
• Liquidator of Closed Banks
 What is PDIC’s maximum
deposit insurance coverage?
FFECTIVE JUNE 1, 2009, THE MAXIMUM DEPOSIT INSURANCE COVERAGE IS
P500,000 PER DEPOSITOR. ALL DEPOSIT ACCOUNTS BY A DEPOSITOR IN A
CLOSED BANK MAINTAINED IN THE SAME RIGHT AND CAPACITY SHALL BE
ADDED TOGETHER.
UNDER R.A. NO. 9576, THE PDIC MAY PROPOSE TO ADJUST THE MDIC, SUBJECT
TO THE APPROVAL OF THE PRESIDENT OF THE PHILIPPINES, IN CASE OF A
CONDITION THAT THREATENS THE MONETARY AND FINANCIAL STABILITY OF
THE BANKING SYSTEM THAT MAY HAVE SYSTEMIC CONSEQUENCES.
What is an insured deposit?
THE TERM ‘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.
A JOINT ACCOUNT SHALL BE INSURED SEPARATELY FROM ANY INDIVIDUALLY-
OWNED DEPOSIT ACCOUNT.
R.A. NO. 9576 STIPULATES THAT PDIC WILL NOT PAY DEPOSIT INSURANCE FOR THE
FOLLOWING ACCOUNTS OR TRANSACTIONS:
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; HENCE, ALL OPERATING BANKS
ARE MEMBERS OF PDIC.
What types of deposits are insured by
PDIC?
EXCEPT FOR THE EXCLUSIONS STIPULATED IN RA 9576, 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 ARE ALSO INSURED BY PDIC PURSUANT TO RA 6426 (“AN ACT INSTITUTING A
FOREIGN CURRENCY DEPOSIT SYSTEM IN THE PHILIPPINES, AND FOR OTHER PURPOSES”) AND CENTRAL BANK
(CB) CIRCULAR NO. 1389. DEPOSITORS MAY RECEIVE PAYMENT IN THE SAME CURRENCY IN WHICH THE INSURED
DEPOSIT IS DENOMINATED.
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 deposits maintained in branches and subsidiaries of
foreign banks operating in the Philippines insured by the
PDIC?
YES, THE PDIC CHARTER PROVIDES THAT THE DEPOSITS IN BRANCHES AND
SUBSIDIARIES OF FOREIGN BANKS LICENSED BY THE BANGKO SENTRAL NG
PILIPINAS (BSP) TO PERFORM BANKING FUNCTIONS IN THE PHILIPPINES ARE
INSURED BY THE PDIC.
Are deposits maintained in Philippine
banks with branches outside the
Philippines insured by the PDIC?
THE PDIC CHARTER PROVIDES THAT A PHILIPPINE BANK MAY ELECT TO INSURE
WITH THE PDIC ITS DEPOSITS IN BRANCHES OUTSIDE THE PHILIPPINES. AS OF 20
APRIL 2021, NO PHILIPPINE BANK HAS ELECTED TO INSURE DEPOSITS IN THEIR
FOREIGN BRANCHES WITH PDIC.
TO VERIFY IF YOUR DEPOSITS IN A BRANCH OF A PHILIPPINE BANK OUTSIDE THE
PHILIPPINES ARE COVERED BY DEPOSIT INSURANCE IN THE HOST FOREIGN
COUNTRY, PLEASE INQUIRE WITH THE ACCOUNT OFFICER OF YOUR BRANCH.
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.
R.A. NO. 9576 STIPULATES THAT PDIC WILL NOT PAY DEPOSIT INSURANCE FOR THE
FOLLOWING ACCOUNTS OR TRANSACTIONS:
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.
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 PDIC’S 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.
What processes are involved before PDIC starts servicing claims?
DEPOSIT RECORDS ARE SUBJECTED TO AN
EXAMINATION PRIOR TO THE START OF
SERVICING/SETTLEMENT OF CLAIMS. CLAIMS ARE
EVALUATED AND PROCESSED ACCORDING TO PDIC'S
STANDARD PROCEDURES.
 How long does the pre-settlement examination take?

The length of time needed for the pre-settlement examination of deposit

liabilities of a closed insured bank largely depends on the completeness
and accuracy of records turned over by the Bank to PDIC and the number
of deposit accounts to be examined.
 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?
THE CLAIM FOR THE UNINSURED PORTION OF THE DEPOSIT IS A CLAIM AGAINST THE ASSETS OF
THE CLOSED BANK.
THE CLAIM MAY BE FILED WITH THE LIQUIDATOR OF THE CLOSED BANK WITHIN SIXTY (60) DAYS
FROM PUBLICATION OF NOTICE OF CLOSURE. HOWEVER, PAYMENT OF SAID CLAIM WILL DEPEND
ON THE BANK’S AVAILABLE ASSETS 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.