The Philippine Deposit Insurance Corp. is pushing sweeping legislative reforms to modernize the country’s deposit insurance system, including broader coverage, faster claims payment, and new powers to contain financial crises.
The proposed changes come after the increase in maximum deposit insurance coverage to P1 million last year, which the PDIC said raised the need to strengthen the system behind that protection.
At a joint “PDIC 101: Understanding Deposit Insurance” press conference with the Philippine Information Agency, PDIC President and CEO Roberto B. Tan said the reform agenda aims to make deposit insurance more responsive as financial risks evolve.
“Last year’s increase in coverage was an important promise to depositors. This legislative agenda is how we fulfill that promise for the future,” Tan said, calling for a system that is broader, faster, and stronger during crises.
Among the proposed reforms is an expansion of deposit insurance to eligible deposits held by non-bank financial institutions and cooperatives. The PDIC also wants higher coverage for accounts considered to have high social and economic value.
The agency is seeking faster insurance payouts by streamlining deposit-record verification and removing statutory hurdles that can delay claims.
More significantly, the PDIC wants authority to impose a temporary blanket guarantee during systemic financial crises. Such a tool could help contain panic and prevent bank runs when confidence in the financial system comes under severe pressure.
The reform package also seeks to strengthen the PDIC’s liquidation powers and institutional capacity, giving it greater ability to manage failed banks and protect depositors.
The proposals are still being refined, with stakeholder consultations underway. A government workshop was completed in June, and feedback will be incorporated before the amendments are finalized.
Sen. Vicente C. Sotto III separately filed Senate Bill No. 1667 in January seeking to strengthen the PDIC Charter, authorities, and institutional capacity.
The push comes as deposit insurance increasingly serves not only as protection for individual savers but also as a line of defense for financial stability. For the PDIC, the challenge is to ensure that its safety net keeps pace with a banking system and economy that are becoming more complex.
