Saturday, July 8, 2023 7:24 PM

Philippine Deposit Insurance Corporation (RA 3591)

created in 1963
"to protect depositors by providing deposit insurance coverage for the depositing
public and help promote financial stability."
Attached agency of the Bangko Sentral ng Pilipinas
Empower Filipinos through financial literacy

ROLES OF THE PDIC

1. Deposit Insurance - maximum deposit of P500,000 per depositor per bank.

- PDIC builds up Deposit Insurance Fund through assessments at
an annual flat rate of 1/5 of 1% of their total deposit liabilities.

2. Co-Regulator of Banks - works closely with BSP to ensure stability

- Conducts examination of the banks
- Issues rules and regulations for compliance of banks to
protect deposit insurance system and the depositing
public

3. Liquidation of Closed Banks - proceeds with the liquidation process upon order of
the Monetary Board of the BSP
- Assets of the closed banks are managed and eventually
disposed to settle claims of creditors as provided by the
civil code

INSURED DEPOSIT - amount due to any bonafide depositor for legitimate deposits in an
insured bank net of any obligation of the depositor to the insured bank as of date of
closure, but not to exceed P500,000. (effective June 1, 2009)
- "a joint account shall be insured separately from any individually-owned
deposit account"
- the maximum insured deposit shall be divided into as many equal shares
as there are individuals, juridical persons or entities, unless a different
sharing is stipulated in the document of deposit, and (2) If the account is
held by a juridical person or entity jointly with one or more natural
persons, the maximum insured deposit shall be presumed to belong
entirely to such juridical person or entity

TYPES OF DEPOSIT INSURED BY PDIC

1. By Deposit
a. Savings
b. Special Savings
c. Demand/Checking
d. NOW

MIDTERM Page 1
 d. NOW
e. CTDs

2. By Deposit Account
a. Single Account
b. Joint Account
c. By, ITF, or FAO

3. By Currency
a. Philippine Peso
b. Foreign Currencies considered as part of BSP's international reserve

EXCLUSIONS FROM DEPOSIT INSURANCE COVERAGE

1. Investment products such as bonds, securities and trust accounts
2. Deposit accounts which are unfunded, fictitious or fraudulent;
3. Deposit products constituting or emanating from unsafe and unsound banking
practices;
4. Deposits that are determined to be proceeds of an unlawful activity as defined
under the Anti-Money Laundering Law

ARE ALL BANK MEMBERS OF THE PDIC?

- MEMBERSHIP OF PDIC IS MANDATORY

ARE DEPOSITS MAINTAINED IN BRANCHES AND SUBSIDIARIES OF FOREIGN BANKS

OPERATING IN THE PHILIPPINES INSURED BY THE PDIC?
- YES, the PDIC Charter provides that the deposits in branches and subsidiaries of
foreign banks licensed by the BSP to perform banking functions in the Philippines
are insured by the PDIC.

DEPOSIT - the unpaid balance of money or its equivalent received by a bank in the usual
course of business and for which it has given or is obliged to give credit to
- any obligation of a bank which is payable at the office of the bank located
outside of the Philippines shall not be a deposit for any of the purposes of this
Act or included as part of the total deposits or of insured deposit:
- subject to the approval of the Board of Directors, any insured bank which is
incorporated under the laws of the Philippines which maintains a branch
outside the Philippines may elect to include for insurance its deposit
obligations payable only at such branch.

REQUIREMENTS IN FILING OF CLAIMS:

A. Original Evidence of Deposits - (savings passbook, certificate of time deposit, bank
statement, used/unused checks, atm cards
B. One Valid Original ID w/ Clear Signature - advisable to bring at least 2 IDs
C. For Depositors below 18 - photocopy of Birth Certificate and valid ID of the parent
D. Original Copy of a Notarized Special Power of Attorney - for claimants who are not
signatories in the bank records. (Minor- SPA executed by the parent)

MIDTERM Page 2