The Philippine Deposit Insurance Corp. (PDIC) plans to replace its flat-rate deposit insurance premium with a risk-based system by 2028, under which banks with stronger risk profiles could pay lower assessment rates, an official said on Thursday.
The proposed Risk-Based Assessment System (RBAS) would replace the current framework, where banks pay a uniform assessment equivalent to one-fifth of 1% of total deposit liabilities.
Instead, assessment rates would be based on a bank’s overall risk profile, including capital adequacy, liquidity, asset quality, governance, business model and supervisory assessments by the Bangko Sentral ng Pilipinas (BSP).
PDIC general counsel Maria Antonette Brillantes-Bolivar said the new framework is designed to better align premium rates with the risks posed by individual banks.
“The RBAS promotes fairness by ensuring that assessment rates better reflect a bank’s level of risk. It also encourages banks to strengthen governance, maintain adequate capital, and adopt sound risk management practices that contribute to a safer and more resilient banking system,” she said.
Banks with stronger risk profiles could qualify for lower assessment rates under the framework, which is being developed with advisory support from the World Bank Group in consultation with the BSP and banking industry associations.
PDIC will conduct a one-year shadow run before the planned 2028 rollout. During the trial period, banks will continue paying the current flat assessment while receiving simulated premium calculations under the new methodology.
The agency said bank-specific assessments, simulated scores and risk ratings generated during the trial will remain confidential.
The proposal will not affect the maximum deposit insurance coverage of P1 million per depositor, per bank.
