PDIC 

1. Read the following laws particularly RA 10846

 RA 3591 (1963) – an act establishing the Philippine deposit insurance corporation, defining its powers and duties
and for other purposes.
 Ra 7400 - an act further amending republic act numbered three thousand five hundred ninety-one, as amended,
otherwise known as the charter of the Philippine deposit insurance corporation, and for other purposes.
 Ra 9302 (2004) - an act increasing the maximum deposit insurance coverage, and in connection therewith, to
strengthen the regulatory and administrative authority, and financial capability of the Philippine deposit
insurance corporation (pdic)
- Amended the pdic charter and provided depositors deposit insurance protection 2.5 times more than
the present insurance coverage. The p250, 000 mdic restored the value of protection of the mdic at
p100, 000 in 1992 at today's prices.
 Ra 9576 (2009) - it is hereby declared to be the policy of the state to strengthen the mandatory deposit
insurance coverage system to generate, preserve, maintain faith and confidence in the country's banking
system, and protect it from illegal schemes and machinations.
 Ra 10846 (2016) - an act enhancing the resolution and liquidation framework for banks, amending for the
purpose republic act no. 3591, as amended, and other related laws

2. Public Policy objectives

PDIC was created to “promote and safeguard the interests of the depositing public by way of providing permanent
and continuing insurance coverage on all insured deposits.” The PDIC also aims to strengthen the mandatory deposit
insurance coverage system to generate, preserve, and maintain faith and confidence in the country’s banking system,
and protect it from illegal schemes and machinations.

3. Unsafe and Unsound Deposit-Related Activities

1. Performance of any deposit-related practice, activity, or transaction without the requisite approvals or without
adequate controls, as mandated by existing laws, rules, and regulations, which may result to unaccounted,
undocumented and/or unrecorded deposits.
2. Failure to keep bank records (printed and/or electronic) within the bank premises especially deposit documents
such as, but not limited to, signature cards, depositor information files, and deposit ledgers.
3. Granting high interest rates when the bank has: (i) negative unimpaired capital and (ii) either a liquid assets-to-
deposits ratio of less than 10% or an operating loss.

A bank is deemed offering high interest rates on deposits if the interest rate is over 50% of the prevailing comparable
market median rate for similar bank categories.

Liquid assets refer to the sum of Cash, Due from BSP/Banks and Financial Assets, net of allowance for credit losses.

4. Non-compliance with PDIC Regulatory Issuances.

5. Other deposit-related practices, activities, and transactions which the PDIC may identify through appropriate
issuances.

Attached for guidance is a list of specific activities which the PDIC may consider to be unsafe and/or unsound banking
practices (Annex A). The PDIC may hereafter consider other acts or omissions as unsafe and/or unsound pursuant to the
general principles and guidelines in this Regulatory Issuance.

4. PDIC Composition

The powers and function of the Board of directors which shall be composed of seven (7) members as:
 1) The Governor of the Bangko Sentral ng Pilipinas (BSP) who shall be ex officio Chairperson of the Board without
compensation.
2) The Secretary of Finance who shall be the ex officio Vice Chairperson and member of the Board without
compensation.
3) The President of the Corporation, who shall be appointed by the President of the Philippines from a shortlist prepared
by the Governance Commission for Government-Owned or -Controlled Corporations pursuant to Republic Act No.
10149, or the “GOCC Governance Act of 2011“ to serve on a full-time basis for a term of six (6) years.
4) Four (4) members from the private sector to be appointed for a term of six (6) years by the President of the
Philippines from a shortlist prepared by the Governance Commission for Government-Owned or -Controlled
Corporations pursuant to Republic Act No. 10149

5. Qualifications of PDIC BOD

No person shall be appointed as member of the Board unless he be of good moral character and of unquestionable
integrity and responsibility, and who is of recognized competence in economics, banking and finance, law, management
administration or insurance, and shall be at least thirty-five (35) years of age

6. PDIC Function

PDIC is a government instrumentality created in 1963 by virtue of Republic Act 3591 to insure the deposits of all banks.
PDIC exists to protect depositors by providing deposit insurance coverage for the depositing public and help promote
financial stability.

7. PDIC’s Maximum Liability

PDIC provides a maximum deposit insurance coverage of PhP500, 000 per depositor per bank. It covers all types of bank
deposits in banks whether denominated in local or foreign currencies. All deposit accounts of a depositor in a closed bank
maintained in the same right and capacity shall be added together.

8. Insurable Deposit, Insured Deposit, Proof of Deposit

 Insurable Deposit - means the amount due to any depositor for deposits in an insured bank net of any
obligation of the depositor to the insured bank as of the date of closure, but not to exceed Two hundred fifty
thousand pesos (P250,000.00).
 Insured Deposit – means amount due to any bonafide depositor for legitimate deposits in an insured
bank as of the date of closure, but not to exceed the Maximum Deposit Insurance Coverage
500,000
 Proof of Deposit - Claims are filed during the onsite Claims Settlement Operations (CSO) period, as announced in
the Notice to Depositors published in national or local newspapers, or posted in the bank premises and
conspicuous places within the locality, and in the PDIC website.
- Depositors have two (2) years from PDIC's takeover of the closed bank to file their deposit insurance
claims. After the two-year period, the depositor's right to claim for deposit insurance is barred

9. Not insurable Deposit

 Is an any individual or entity with a valid claim against the asset of the closed bank

 means 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 a commercial, checking, savings, time or thrift account or which
is evidenced by passbook, check and/or certificate of deposit, printed or issued in accordance with Bangko
Sentral rules and regulations and other applicable laws
10. Compute the Maximum Liability - Rules for individual account, Trust Account, Joint Account

JOINT ACCOUNT
  A joint account regardless of whether the conjunction "and", "or", "and/or" is used, shall be insured separately
from any individually-owned deposit account/s.
 If the account is held jointly by two or more natural persons, or by two or more juridical persons or entities,
 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.
 Unless a different sharing is stipulated in the deposit documents, the insured amount up to the Maximum
Deposit Insurance Coverage of Php500,000 shall be divided equally between or among co-owners of a joint
account.
TRUST ACCOUNT
• In a “By” account, Ana by Ben, Ana is the depositor.
• In an “In Trust For” (ITF) account, Ana In Trust For Ben, Ben is the depositor.
• In a “For the Account of” (FAO) account, Ana For the Account of Ben, Ben is the depositor.
• In an account with combined Joint and FAO/ITF, Ana and/or David In Trust For Ben, Ben is the depositor

If a depositor is the sole beneficial owner of a single, “For the Account of”, “By”, and “In Trust For” accounts, the
consolidated balances of these accounts shall be insured up to Php500,000. The depositor’s total shares in all his/her
joint accounts shall be separately insured up to Php500,000. A depositor with single accounts and joint accounts may
have insured deposits of up to Php1,000,000
INDIVIDUAL ACCOUNT
 All individual accounts of a depositors, including the above where ownership is vested in him, shall be insured to a
maximum of 500,000 pesos

11. Identify the requirements for claims

 ORIGINAL EVIDENCE OF DEPOSITS such as savings passbook, certificate of time deposit, bank statement,
used or unused checks, or ATM card.
 ONE (1) valid original photo-bearing identification document (ID) with clear signature of depositor/claimant 
 For depositors below eighteen (18) years old, photocopy of birth certificate from the Philippine Statistics
Authority (PSA) or a duly certified copy issued by the local civil registrar, and valid ID of the parent.
 Original copy of a notarized Special Power of Attorney (SPA) for claimants who are not the signatories in the
bank records. In the case of minor depositor, the SPA must be executed by the parent. 
 Claim Form:

When filing claim during the onsite CSO period, or during personal filing at the PDIC PAC, a system
generated Claim Form shall be printed by PDIC representative after interview/processing.