The Philippine Deposit Insurance Corp (PDIC) has expressed support for a Senate bill aimed at strengthening the country’s financial safety net by expanding insurance coverage and increasing institutional authority.
Senate Bill 1667, filed by Senate President Vicente Sotto III, seeks to amend the PDIC Charter to bolster the state insurer’s capacity to protect depositors and promote financial stability.
The proposed reforms follow the implementation of a higher maximum deposit insurance coverage of P1 million per depositor per bank, which took effect March 15, 2025.
PDIC president and chief executive Roberto Tan said the corporation welcomes the legislative reforms to better protect the depositing public. Tan said the measures will serve as a legal backbone for a more responsive and future-ready system, allowing the agency to respond decisively during crises.
The legislative agenda includes extending deposit insurance to non-bank financial institutions supervised by the Bangko Sentral ng Pilipinas and cooperatives under the Cooperative Development Authority. This expansion aims to close existing gaps in the financial system and ensure a wider range of savers are protected.
The bill also introduces authority for differential coverage, which would allow insurance limits above the standard P1 million for accounts with high social or economic value. These include retirement savings, payroll accounts and settlement accounts, intended to minimize community disruption during bank closures.
To ensure faster settlement of claims, the amendments would require banks to maintain accurate electronic records and exempt the PDIC from bank secrecy laws for verification purposes. Under the proposal, only a Supreme Court-issued temporary restraining order could prohibit the payment of insurance claims during contested closures.
The measure also seeks to ringfence the Deposit Insurance Fund (DIF), ensuring it is used exclusively for claim payments and financial assistance to distressed banks.
The PDIC is also seeking authority to implement a temporary full deposit insurance guarantee during systemic crises to prevent bank runs and maintain public confidence.
Further reforms focus on streamlining bank liquidation processes to allow for faster recovery for creditors
Tan said these tools are critical to ensuring the insurer can effectively execute its mandate during changing times.
The PDIC said it would collaborate with legislators and financial regulators to push for the passage of the bill, which is expected to strengthen the banking system and enhance depositor confidence across the Philippines.
