I P P I N E D E P O S I T
P H I L E
I NS U R A N C
R A TI O N (P D I C )
CO R P O
GROUP 5
WHAT IS THE PHILIPPINE DEPOSIT
INSURANCE CORPORATION (PDIC)?
The PDIC exists to protect the
depositors by providing deposit
insurance coverage for the depositing
public and help promote financial
stability.
The PDIC’s core mandates are
deposit insurance and liquidation of
closed banks.
WHAT IS PDIC’S
OVERALL MANDATE?
PDIC exists to provide the 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
WHAT ARE THE
FUNCTIONS OF PDIC?
• DEPOSIT INSURER
• LIQUIDATOR OF CLOSED BANKS
WHAT IS PDIC’S MAXIMUM
DEPOSIT INSURANCE COVERAGE?
Effective June 1, 2009, the maximum deposit insurance
coverage is P500,000 per depositor. All deposit
accounts by a depositor in a closed bank bank
maintained in the same right and capacity shall be
added together.
Under R.A No. 9576, the PDIC may propose 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
WHAT IS 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.
A joint account shall be insured separately from any individually-
owned deposit account.
WHAT IS INSURED DEPOSIT?
R.A. No. 9576 stipulates that PDIC will not pay deposit insurance
for the following accounts or transactions:
1. Investment products such as bonds, securities and trust
accounts;
2. Deposit accounts which are unfunded, fictitious or fraudulent;
3. Deposit products constituting or emanating from unsafe and
unsound banking practices;
4. 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 TYPE 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
WHAT TYPE OF DEPOSITS ARE
INSURED BY PDIC?
• 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 RA NO. 9576:
1. Investment products such as bonds, securities and
trust accounts;
2. Deposit accounts which are unfunded, fictitious or
fraudulent;
3. Deposit producis constituting or emanating from
unsafe and unsound banking practices;
4. Deposits that are determined to be proceeds of an
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 the
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 September 2022, 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 dues 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
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 of 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 VE ADDED TOGETHER FOR INSURANCE
PURPOSES?
• No. Deposits in different banking institutions are insured separately. However, if a
bank has one of 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 branch, 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 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 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.
IF THE DEPOSIT ACCOUNT IN A CLOSED BANK IS MORE THAN
P500,000, WHAT HAPPENS TO THE EXCESS OF THE MAXIMUM
AMOUNT OF INSURED DEPOSIT?
• The claim for the uninsured portion of the deposit is a claim againts the
assets of the closed bank
• The claim may be filed with the liquidator of a 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
maximum insurance shall be based on priorities set by law.
ILLUSTRATIVE CASES ON
SINGLE ACCOUNTS
SINGLE ACCOUNTS / SOLE PROPRIETORSHIP / “BY”
ACCOUNTS / “ITF” ACCOUNTS
Charter Provision: Sec. 4 (g):
"x xx 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 benefit either
in his own name or in the name of others. x x x”
SINGLE ACCOUNTS
• SINGLE ACCOUNTS ARE INDIVIDUALLY-OWNED ACCOUNTS
OR ACCOUNTS HELD UNDER ONE NAME, EITHER AS
NATURAL PERSON OR JURIDICAL ENTITY.
• NATURAL PERSON REFERS TO ANY INDIVIDUAL PERSON.
SINGLE PROPRIETORS ARE CONSIDERED NATURAL PERSONS.
• JURIDICAL ENTITY REFERS TO A CORPORATION,
PARTNERSHIP OR COOPERATIVE.
JOINT ACCOUNTS
• A JOINT ACCOUNT REGARDLESS OF WHETHER THE CONJUNCTION "AND", "OR" OR
"AND/OR" IS USED SHALL BE INSURED SEPARATELY FROM SINGLE ACCOUNTS.
• UNLESS A DIFFERENT SHARING IS STIPULATED IN THE DEPOSIT DOCUMENTS, THE
INSURED AMOUNT UP TO THE MAXIMUM DEPOSIT INSURANCE COVERAGE OF
PHP500,000 SHALL BE DIVIDED EQUALLY BETWEEN OR AMONG CO-OWNERS OF A
JOINT ACCOUNT.
• THE TOTAL SHARES OF A CO-OWNER IN SEVERAL JOINT ACCOUNTS MAY EXCEED PHP
500,000 BUT WILL ONLY BE INSURED UP TO THE MAXIMUM DEPOSIT INSURANCE
COVERAGE OF PHP500,000.
• JOINT ACCOUNTS HELD IN THE NAMES OF A JURIDICAL ENTITY AND A NATURAL PERSON
SHALL BE PRESUMED TO BELONG SOLELY TO THE JURIDICAL ENTITY.
“BY”, “ITF” OR “FAO”
ACCOUNTS
• IN A "BY" ACCOUNT, ANA BY BEN, ANA IS THE DEPOSITOR.
• IN AN "IN TRUST FOR" (ITF) ACCOUNT, ANA IN TRUST FOR
BEN, BEN IS THE DEPOSITOR.
• IN A "FOR THE ACCOUNT OF" (FAO) ACCOUNT, ANA FOR THE
ACCOUNT OF BEN, BEN IS THE DEPOSITOR.
ILLUSTRATIVE CASES ON
JOINT ACCOUNTS
CHARTER PROVISIONS:
• A joint account regardless of whether the conjunction "and", "or", "and/or" is used,
shall be insured separately from any individually-owned deposit account/s.
• If the account is held jointly by two or more natural persons, or by two or more
juridical persons or entities, the maximum insured deposit shall be divided into as
many equal shares as there are individuals, juridical person or entities, unless a
different sharing is stipulated in the document of deposit.
• If the account is held by a juridical person or entity jointly with one or more natural
persons, the maximum insured deposit shall be presumed to belong entirely to
such juridical person or entity.
EN D O F
DISC U S S I O N !
GROUP 5