The Philippines doubled its maximum deposit insurance coverage to P1 million per depositor per bank, effective March 15, 2025, the state deposit insurer said Thursday.
The Philippine Deposit Insurance Corp. (PDIC) said the increase from P500,000 marks the first independent adjustment since amendments to its charter granted the PDIC board the authority to revise the coverage without congressional approval.
The PDIC said the decision was based on inflation trends and nominal gross domestic product (GDP) per capita. The previous P500,000 coverage, set in 2009, is equivalent to approximately P1 million when adjusted for inflation between 2025 and 2027, it said.
The new coverage aligns with international standards, representing about four times the Philippines’ nominal GDP per capita, consistent with 18 economies of similar size, the PDIC said.
The PDIC assured banks the adjustment would not lead to an increase in the current assessment rate of one-fifth of 1 percent of banks’ total deposit liabilities, aiming to maintain financial stability.