State deposit insurer Philippine Deposit Insurance Corporation (PDIC) reaffirmed its commitment to support banks through major reforms aimed at reinforcing depositor confidence, financial inclusion, and institutional strength across the rural banking sector.
In his message during the 68th Charter Anniversary Symposium of the Rural Bankers Association of the Philippines (RBAP) recently held in Tagaytay City, PDIC President and CEO Roberto B. Tan lauded rural bankers for embracing the theme “Strength in Numbers, Leave No Bank Behind,” and expressed support for the association’s mission to ensure the resilience of the rural banking sector.
Central to President Tan’s address was the announcement of the increase in the maximum deposit insurance coverage (MDIC) from P500,000 to P1 million per depositor effective March 15, 2025. The increase, the first in 16 years, will now fully insure 99.8% of all deposit accounts in rural banks based on deposit data as of end December 2024. He said that the recent policy initiative was both timely and essential, supported by data, a methodology recommended by the World Bank, and international best practices. This was also made possible by the amendment of the PDIC Charter in 2022, granting authority to its Board to adjust the MDIC to an amount indexed to inflation or in consideration of other economic indicators as it deems appropriate.
President Tan also announced that the PDIC is set to propose legislative reforms to enhance the effectiveness of the deposit insurance system. The legislative proposal includes the expansion of insurance protection beyond traditional bank deposits. He said that the PDIC is conducting consultations with financial regulators and stakeholders in developing this inclusive policy move which will require a phased feasibility study. Differentiated coverage limits are also being considered under the proposal to further reinforce financial stability.
Complementing these key policy shifts are the implementation of intensified financial literacy advocacies such as the Corporation’s “Be a Wise Saver” program and its upcoming “Be an Empowered Saver” campaign aimed at educating the public on depositors’ rights and promoting informed financial decision-making, especially in the face of rapidly evolving digital financial services.
President Tan also highlighted the PDIC’s partnership with RBAP in piloting a governance-focused training program for rural banks to strengthen internal controls and enhance deposit operations. Targeted at the next generation of banking leaders, this program will integrate case studies drawn from bank examinations, with plans for wider rollout moving forward to cover more rural banks. (PDIC)
