More Filipinos protected with PHP1M bank deposit insurance

More than 147 million bank accounts in the Philippines are now fully insured under the newly increased deposit insurance coverage, doubling the maximum protection per depositor to PHP 1 million, according to the Philippine Deposit Insurance Corporation.

The new maximum deposit insurance coverage (MDIC), which took effect March 15, 2025, boosts depositor confidence and financial stability without raising assessment costs for banks, the PDIC said.

The MDIC refers to the maximum amount guaranteed safe by the PDIC in the event an insured bank fails.

“As of end-December 2024, the raised MDIC fully insures 147 million deposit accounts—1.5 million more than if the limit had remained at PHP 500,000,” the PDIC stated.

This now represents 98.6% of all deposit accounts in the Philippine banking system, up from 97.6% under the old coverage.

In total peso value, insured deposits rose to PHP 5.3 trillion, PHP 1.3 trillion more than the coverage amount under the previous MDIC.

Coverage by value has also grown to 24.1% of total deposits, compared to only 18.0% before the adjustment.

“The expanded protection at PHP 1 million promotes increased depositor confidence in the banking system without entailing an increase in the assessment being levied on banks,” the PDIC said in a statement.

Bank leaders across sectors welcomed the change, citing the importance of timely policy updates to sustain trust.

“It’s a timely move given that limits have not been increased in years,” said Bankers Association of the Philippines President Jose Teodoro Limcaoco.

Chamber of Thrift Banks President Mary Jane Perreras added that, “This move reinforces trust in the banking system, especially for senior citizens and retirees who rely on deposit security.”

From the rural sector, Rural Bankers Association of the Philippines President Jose Paolo Palileo agreed, noting that the higher MDIC “further strengthens public confidence in the banking system, and comes at no extra cost to insured banks, thereby allowing them to attract more private investment in the form of savings.”

The doubling of the MDIC was approved by the PDIC Board of Directors, invoking authority granted under Republic Act No. 3591, as amended.

For the first time in Philippine history, the MDIC was adjusted without needing congressional approval—enabled by amendments to the PDIC Charter—allowing for faster responses to economic trends.

The methodology used to determine the PHP 1 million threshold followed World Bank recommendations, which aimed to restore the real value of the coverage last set in 2009 and eroded by years of inflation.

PDIC said the increase is a “proactive measure to reinforce confidence in the Philippine banking system and contribute to financial stability.”

In addition to protecting more depositors, the move aims to help maintain liquidity, discourage panic-based withdrawals, and promote healthy savings behavior.

The PDIC reiterated its broader mission as co-regulator of banks and receiver of closed institutions, emphasizing that its reforms support depositor protection and systemic resilience.

For more information on PDIC programs, the public is encouraged to visit www.pdic.gov.ph and its official Facebook page at facebook.com/OfficialPDIC.