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Quiz 10

The document outlines the composition and roles of the Board of Directors of the Philippine Deposit Insurance Corporation (PDIC), including the ex officio members and private sector appointees. It defines key terms such as payout, receiver, liquidation, and risk-based assessment system, and explains PDIC's purpose to protect depositors and maintain banking stability. Additionally, it details PDIC's funding sources, primarily from the Deposit Insurance Fund and other financial mechanisms.

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13 views1 page

Quiz 10

The document outlines the composition and roles of the Board of Directors of the Philippine Deposit Insurance Corporation (PDIC), including the ex officio members and private sector appointees. It defines key terms such as payout, receiver, liquidation, and risk-based assessment system, and explains PDIC's purpose to protect depositors and maintain banking stability. Additionally, it details PDIC's funding sources, primarily from the Deposit Insurance Fund and other financial mechanisms.

Uploaded by

madirossesumaya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Madirosse Sumaya

1. Who are the 7 members of the Board of Directors of PDIC?


1. Governor of the Bangko Sentral ng Pilipinas (BSP) – Ex officio
Chairperson (no compensation);
2. Secretary of Finance – Ex officio Vice Chairperson (no compensation);
3. PDIC President – Appointed by the President of the Philippines from a
shortlist by the Governance Commission for GOCCs (GCG); serves full-time
for six (6) years;
4. Four (4) Private Sector Members – Appointed by the President from a GCG
shortlist; serves for six (6) years, with one reappointment permitted; two of the
initial appointees serve for only three (3) years.

2. Give the meaning of the following:


A. Payout
-The term payout refers to the payment of insured deposits.
B. Receiver
-The term receiver refers to the Corporation or any of its duly authorized
agents acting as receiver of a closed bank.
C. Liquidation
- Liquidation is the process of converting a closed bank's assets into cash to
pay off its liabilities, including claims of depositors and creditors.
D. Risk based assessment system
-The term risk-based assessment system pertains to a method for
calculating an insured bank's assessment on the probability that the DIF will
incur a loss with respect to the bank, and the likely amount of any such loss,
based on its risk rating that takes into consideration

3. What is the purpose of PDIC?


-The PDIC shall, as a basic policy, promote and safeguard the interests of the
depositing public by providing insurance coverage on all insured deposits and
helping maintain a sound and stable banking system.

4. Where does PDIC get its operational funding?


-The main source of funding for the Philippine Deposit Insurance Corporation
(PDIC) is the Deposit Insurance Fund (DIF), which is maintained by
assessments or insurance premiums received from participating banks. PDIC
also makes money through liquidation, which recovers assets after bank
closures. Its financial resources are also influenced by the profits from
assets, such as government securities. PDIC has the choice to borrow
money or get assistance from the federal government when more money is
required. These funding sources guarantee PDIC's ability to successfully
safeguard depositors and uphold system stability in the banking industry.

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