PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC)| BRAVO, T.

I. Definition

PDIC is a government instrumentality created in 1963 by Republic Act

3591, as amended, to insure the deposits of all banks. PDIC exists to protect
depositors by providing permanent and continuing deposit insurance coverage
for the depositing public and help promote financial stability.

PDIC is tasked to strengthen the mandatory deposit insurance coverage

system to generate, preserve, maintain faith and confidence in the country’s
banking system; and protect it from illegal schemes and machinations.

The PDIC is an attached agency of the Department of Finance.

II. Role

The Philippine Depository Insurance Corporation has three main roles in

the Philippine Financial System which are deposit insurer, co-regulator of banks
and receiver and liquidator of closed banks.

Deposit Insurer. It is one of the ways to promote financial and economic

stability. To be specific, PDIC provides up to P500,000.00 deposit insurance to
the depositing public if the bank where they have deposited suffers the inability to
pay its debts. In fact, this amount to be claimed by the depositor will be coming
from the Deposit Insurance Fund (DFI). It is primarily built by PDIC to pay back
the money which has been lost due to the failure of certain financial institution.
Moreover, it insures valid deposits in domestic offices of its member-banks:

By Deposit Type:

 Savings
 Special Savings
PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC)| BRAVO, T.

 Demand/Checking
 Negotioable Order of Withdrawal (NOW)
 Time Deposits

By Deposit Account:

 Single Account
 Joint Account
 Account “By”, “In Trust For” (ITF) or “For the Account of” (FAO)
another person

By Currency:

 Philippine Peso
 Foreign currencies considered as part of BSP’s International
reserves

However, there are accounts that are not covered by the deposit
insurance. As stated by R.A. No. 9576 these are (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 and (4) deposits that are determined to be
proceeds of an unlawful activity as defined under the Anti-Money Laundering
Law. Moreover, it insures valid deposits in domestic offices of its member-banks:

Co-regulators of Banks. PDIC’s authority to examine banks has been

restored when former President Arroyo signed the PDIC Char amendment. It is
mainly to ensure our financial system’s security by assisting certain financial
institutions about remedial actions on threats and bank failures with the help of
Banko Sentral ng Piliipinas (BSP).

Receiver and Liquidator of Closed Banks. PDIC will take over to

manage the banks which have been ordered to be closed by the Monetary
Board. Then, all of the banks’ assets, records and affairs will be administered by
PDIC. It will consequently examine its records as to who among the depositors
will receive the specified amount of insurance to be claimed. Likewise, such
records will also be used for the benefits of the banks’ creditors.

III. Services Offered

 Settlement of Claims for Deposit Insurance – Filing, processing and
settlement of deposit insurance claims.
PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC)| BRAVO, T.

 Settlement of Claims of Closed Banks’ Creditors – Settlement of

claims against assets of closed banks after finality of court order of the
approval of Asset Distribution Plan (ADP).
 Remittance of Assessment, Assessment Deficiency or
Interest/Penalty – Collection by PDIC of Assessment from Member-
Banks as Mandated under the PDIC Charter.
 Loan Payment – Collection of loans by PDIC
 Sale of Decals & Standees – Provision of Decals and standees to
member-banks upon payment of required fees as required under Sec. 21
(a) of R.A 3591, as amended.
 Depositor Assistance – Receive and respond to queries/complaints of
bank depositors.