PDIC raises maximum deposit insurance to P1 million

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A deposit insurance ensures customers do not lose all their deposits if a bank fails

MANILA, Philippines – The Philippine Deposit Insurance Corporation (PDIC) is doubling the maximum deposit insurance coverage (MDIC) to P1 million from the current P500,000.

The PDIC said in a memorandum to all banks dated Thursday, February 27, that the increase will take effect on March 15.

The MDIC was last raised in 2009, when the PDIC doubled the amount to P500,000 from the previous P250,000 following amendments to the deposit insurer’s charter.

PDIC’s new charter, which lapsed into law in 2022, allows the agency to adjust the MDIC based on inflation and other economic indicators.

PDIC President and Chief Executive Officer Roberto Tan earlier said the increase is part of efforts to adjust for inflation and enhance depositors’ financial security.

“The present value of that now is not [the same P500,000] years ago,” Tan told reporters on the sidelines of the Bangko Sentral ng Pilipinas’ reception for the banking community on January 10.

A deposit insurance ensures a bank’s clients will not lose all their deposits if the former closes or no longer has enough money to pay back its depositors.

The PDIC insures valid deposits made in local banks and branches of foreign banks in the Philippines.

To cover these insurance claims, the PDIC builds up the Deposit Insurance Fund (DIF). As of end-2024, the DIF stands at P236.95 billion. – Rappler.com