PDIC says insured deposits jump in 2025

State deposit insurer Philippine Deposit Insurance Corp. said insured deposits in the Philippine banking system climbed to PHP 5.2 trillion by the end of 2025, up PHP 1.5 trillion, or 40.9%, from PHP 3.7 trillion in 2024, in what the agency said was a significant boost to depositor protection and financial stability.

The Philippine Deposit Insurance Corp., or PDIC, was established on June 22, 1963, through Republic Act No. 3591 to protect depositors and help maintain stability in the financial system. It is an attached agency of the Bangko Sentral ng Pilipinas.

The sharp increase came as the maximum deposit insurance coverage, or MDIC, doubled from PHP 500,000 to PHP 1 million effective March 15, 2025, expanding the amount of savings protected per depositor, per bank.

PDIC has said the increase was approved by its board to provide stronger protection and reinforce public confidence in the banking system.

According to the press release, the higher MDIC accounted for PHP 1.3 trillion, or 86.1%, of the total increase in insured deposits in 2025.

That expansion in coverage also showed up in the number of fully insured accounts.

As of Dec. 31, 2025, fully insured accounts reached 169.2 million, up 20.9% from 140.0 million in the same period in 2024, the release said.

Those accounts represented 98.8% of all deposit accounts nationwide, underscoring how broadly the deposit insurance system now covers ordinary savers, especially smaller account holders, based on the data cited by PDIC.

The broader deposit base in the banking system also continued to grow in 2025.

Total domestic deposits rose to PHP 21.7 trillion by year-end 2025, an annual increase of PHP 1.4 trillion, or 7.1%, according to the press release.

Individual depositors remained the main driver of that growth, contributing PHP 812.1 billion, or 56.4%, of the increase.

Private corporations followed, contributing PHP 334.8 billion, or 23.2%, of the annual rise in domestic deposits.

Taken together, the figures suggest that while overall deposit growth remained solid, the larger jump in insured deposits was driven mainly by the higher insurance ceiling rather than by deposit growth alone.

That matters because deposit insurance serves as a backstop when banks fail, helping reduce the risk of panic withdrawals and supporting confidence in the banking system.

Under PDIC rules, the MDIC now covers up to PHP 1 million per depositor, per bank, effective March 15, 2025. PDIC has also reminded banks to reflect the updated insurance statement in their customer-facing materials and digital platforms.

For depositors, the 2025 data points to a wider financial safety net, with a larger share of bank savings now falling within insured limits.

For the banking system, the increase provides another sign of sustained depositor trust, even as regulators continue pushing measures aimed at financial resilience and inclusion.

PDIC said these developments highlight its role in strengthening financial stability, deepening public trust and expanding protection for depositors across the banking system.

Sources: PDIC press release provided by the user; PDIC official notice on the new MDIC effective March 15, 2025; PDIC charter and background materials.