PDIC taps banks to boost depositor protection

The Philippine Deposit Insurance Corporation said it is deepening its partnership with the banking industry through a recent collaboration with the Bankers Institute of the Philippines in support of BAIPHIL Training and Development Week held from March 9 to 14, 2026.

In support of this year’s theme, “BAIPHIL @85: Partnerships that R.I.S.E. – Resilience. Inclusivity. Sustainability. Engagement.”, PDIC Vice President Jose G. Villaret Jr. of the Corporate Affairs Group led a session on March 10, 2026, focused on the higher maximum deposit insurance coverage, or MDIC, for bankers.

The state deposit insurer said the increase in MDIC to PHP 1 million was designed as a proactive measure to strengthen depositor protection and promote financial stability.

According to PDIC, the adjustment was based on a methodology that used economic indicators and aligned with best international practices.

The agency said the higher coverage means more depositors are protected, which could help reinforce confidence in the banking system.

In terms of deposit amounts, the share of insured deposits to total deposits rose to 23.9% in 2025 from 18.4% in 2024.

PDIC said that increase brought the ratio in line with the international benchmark of at least 20% to subject significant deposit amounts to market discipline.

The agency said the MDIC is backed by the Deposit Insurance Fund, which serves as PDIC’s capital account.

PDIC said the fund is robust, prudently managed, and well-positioned to support the higher insurance ceiling.

Because of that, the agency said there is no need to raise the assessment rate paid by banks to PDIC.

The corporation also urged banks to use their broad networks and regular contact with depositors to help spread information about deposit insurance.

PDIC said banks could amplify its public awareness materials across platforms such as television, radio, out-of-home advertising, and social media to encourage more Filipinos to save in banks.

The deposit insurer said its mandate is to protect bank depositors through deposit insurance, a government policy meant to safeguard depositors and help maintain financial stability.

The current MDIC of PHP 1 million per depositor, per bank has been in effect since March 15, 2025, when the PDIC Board of Directors authorized the increase from the previous ceiling of PHP 500,000.

PDIC said the board’s authority to raise the MDIC is consistent with the provisions of the PDIC Charter, or Republic Act No. 3591, as amended.

The agency was established on June 22, 1963, through Republic Act No. 3591 to protect depositors and help maintain stability in the financial system.

PDIC is an attached agency of the Bangko Sentral ng Pilipinas and a member of the Financial Sector Forum, the Financial Stability Coordination Council, and the Financial Inclusion Steering Committee.

Source: Philippine Deposit Insurance Corporation news release dated April 15, 2026.