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PDIC

The Philippine Deposit Insurance Corporation (PDIC) protects depositors and promotes financial stability by providing insurance coverage for bank deposits, with a maximum limit of ₱500,000 per depositor per bank. PDIC acts as a deposit insurer, bank resolution agent, and liquidator for closed banks, and is supervised by the Bangko Sentral ng Pilipinas while operating independently. Key functions include settling claims, managing closed banks, and ensuring prompt payment of valid deposit claims within 90 days of bank closure.

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Lovenia M. Ferrer
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26 views2 pages

PDIC

The Philippine Deposit Insurance Corporation (PDIC) protects depositors and promotes financial stability by providing insurance coverage for bank deposits, with a maximum limit of ₱500,000 per depositor per bank. PDIC acts as a deposit insurer, bank resolution agent, and liquidator for closed banks, and is supervised by the Bangko Sentral ng Pilipinas while operating independently. Key functions include settling claims, managing closed banks, and ensuring prompt payment of valid deposit claims within 90 days of bank closure.

Uploaded by

Lovenia M. Ferrer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Summary Notes: Philippine Deposit Insurance Corporation (PDIC)

Purpose and Policy

• PDIC was created to protect depositors and promote financial stability in the banking
system.

• It provides insurance coverage for bank deposits, encouraging the public to maintain
confidence in the banking sector.

Nature and Role of PDIC

• A government-owned and controlled corporation (GOCC).

• Acts as the deposit insurer, co-regulator, and receiver of closed banks.

• Supervised by the Bangko Sentral ng Pilipinas (BSP), but operates independently.

Functions of PDIC

1. Deposit Insurance Provider — Insures deposits in banks up to a maximum coverage limit.

2. Bank Resolution Agent — Assists in resolving banking institution problems before closure.

3. Bank Liquidator/Receiver — Takes charge of closed banks, settling claims and disposing
of assets.

Deposit Insurance Coverage

• Maximum Coverage: ₱500,000 per depositor, per bank.

• Covers all types of deposits (savings, checking, time deposits) in insured banks.

• Exclusions:

o Deposits not recorded in bank books.

o Fraudulent or illegal deposits.

o Deposits maintained under anonymous or fictitious names.

Insured Banks

• All BSP-authorized banks are required to be members of the PDIC.


• Membership is automatic and compulsory.

When PDIC Pays Deposit Insurance

• When a bank is closed by the Monetary Board of the BSP.

• Depositors must file claims within two years from notice of closure or bank takeover.

PDIC’s Powers

• Examine and audit closed banks.

• Take legal action against bank directors, officers, and employees for fraud or
mismanagement.

• Manage and dispose of the assets of closed banks to pay creditors and depositors.

Important Legal Provisions

• Prompt Payment Rule: PDIC must start paying valid deposit claims as soon as possible,
ideally within 90 days from bank takeover.

• Subrogation: Once PDIC pays the insured amount, it takes over the rights of the
depositor against the closed bank.

• Receivership and Liquidation: PDIC is appointed receiver when a bank is closed, with the
goal of recovering the bank’s assets for the benefit of creditors and depositors.

Key Takeaways

• PDIC serves as a safety net for depositors.

• It helps maintain trust and stability in the banking sector.

• Understanding the insurance limit and the claim process is essential for both consumers
and law students.

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