The Philippine Deposit Insurance Corp. (PDIC) is seeking broader powers to protect depositors and respond to financial crises, building on last year’s doubling of maximum deposit insurance coverage to P1 million.
PDIC president and CEO Roberto Tan said proposed amendments to the agency’s charter would expand the scope of deposit insurance, speed up claims payments and strengthen its ability to respond to systemic risks.
Among the proposals is an expansion of coverage to eligible deposits held in non-bank financial institutions and cooperatives, extending protection beyond traditional bank depositors.
The PDIC is also seeking authority to provide higher insurance coverage for accounts deemed to have significant social and economic value and to accelerate claims payments by simplifying the verification of deposit records and removing legal hurdles.
Another proposal would allow the agency to temporarily provide a blanket guarantee during a systemic financial crisis, a measure aimed at maintaining depositor confidence and preventing bank runs.
The legislative agenda also includes reforms to strengthen the PDIC’s liquidation framework and institutional capacity.
“Last year’s increase in coverage was an important promise to depositors. This legislative agenda is how we fulfill that promise for the future – by building a deposit insurance system that is broader in coverage, faster in response, stronger in times of crisis, and worthy of public trust,” Tan said.
The PDIC said consultations on the proposals were underway, with a government stakeholder workshop completed in June.
Feedback will be incorporated before proposed legislative amendments are finalized in the coming months.
The push comes after Senate President Vicente Sotto III filed Senate Bill No. 1667 in January seeking amendments to the PDIC Charter to strengthen the agency’s powers and institutional capacity to protect depositors and promote financial stability.
