DEPOSIT INSURANCE COVERAGE
DEPOSIT INSURANCE COVERAGE
(RENUMBERED FROM SEC. 5 BY R.A NO. 10846, 11 JUNE 2016)
SEC 6. The deposit liabilities of any bank which in engaged in
the business of receiving deposits as herein defined on the
effective date of this Act, or which thereafter may engage in
the business of receiving deposits, shall be insured with the
Corporation. The Corporation may establish separate
insurance funds and insurance arrangement or structures or
takaful that take into consideration the peculiar
characteristics of Islamic banking. ( As amended by R.A,
NO.6037, 04 AUGUST 1969; R.A, NO. 10846, 11 JUNE
2016; R.A, NO. 11840, 20 JULY 2022)
DEPOSIT INSURANCE COVERAGE
Whenever a bank is determined by the Bangko
Sentral ng Pilipinas to be capital deficient, the
Corporation may conduct an insurance risk evaluation
on the bank to enable it to assess the risks to the DIF.
Such evaluation may include the determination of; (i)
the fair market value of the assets and liabilities of a
bank; or (ii) the risk classification of a bank. (As
added by R.A NO. 10846, 11 JUNE 2016 and
amended by R.A NO. 11840, 20 July 2022)
SANCTION AGAINST UNSAFE AND UNSOUND BANKING
SANCTIONS AGAINST UNSAFE AND UNSOUND
BANKING
(RENUMBERED FROM SEC. 7 BY R.A. NO. 10846, JUNE 2016; AMENDED BY R.A. NO. 11840,
20 JULY 2022)
SEC 8. Whenever upon examination by the Corporation in to
the condition of any insured bank, it shall be disclosed that an
insured bank or its directors or agents have committed, are
committing or about to commt unsafe or unsound banking, or
have violated, are violating or about to violate any provision
of any law or regulation to which the insured bank is subject.
The Board of Directors shall submit the report of the
examination to the Monetary Board. ( As amended by R.A.
NO. 1840, 20 JULY 2022)
SANCTIONS AGAINST UNSAFE AND UNSOUND
BANKING
The Corporation may terminate the insured of any bank that
fails or refuse to comply, within (30) days from notice, with
any cease-and-desist order issued by the Bangko Sentral ng
Pilipinas, pertaining to a deposit-related unsafe and/ or
sounding banking. ( As added by R.A. NO. 10846, 11 JUNE
2016; amended and renumbered by R.A. NO. 11840, 20
JULY 2022)
Such termination shall be final and executory, and shall be
effective upon publication of the notice of termination in a
newspaper of general circulation. ( As added by R.RA. NO.
10846, 11 JUNE 2016)
SANCTIONS AGAINST UNSAFE AND UNSOUND
BANKING
The deposit of each depositors in the bank on the effective date
of the termination of insurance coverage, less all subsequent
withdrawals, shall continue to be insured up to the maximum
deposit insurance coverage for a period of one hundred eighty
(180) days. Addition to, or renewal of exixting deposits and new
deposits in such bank after the effective date of termination of
insured status of the bank shall not be insured by the
Corporation. ( As added by R.A. NO. 10846, 11 JUNE 2016)
The bank shall not advertise or represent that additions to, or
renewal of, exixting deposits and new deposits made after the
effective date of termination are covered by deposits insurance.
AUTHORITY TO EXAMINE DEPOSIT RECORDS
AUTHORITY TO EXAMINE DEPOSIT RECORDS
(AS AMENDED BY R.A. NO. 11840, 20 JULY 2022)
SEC. 11. When there is a failure of prompt corrective action as declared by
the Monetary Board due to capital deficiency, the Corporation and the
Bangko Sentral ng Pilipinas may examine, inquire orr look into the deposits
record of bank: Provided, That such authority may not be exercicsed when
the failure of prompt corrective action due to grounds other than capital
deficiency.
For this purpose, banks, their officers and employees are hereby
mandated to disclosure and report to the Corporation and thr Bangko
Sentral ng Pilipinas or their duty authorized officers and employees, the
required deposit account information. ( As amended by R.R. NO.
AUTHORITY TO EXAMINE DEPOSIT RECORDS
The Corporation and the Bangko Sentral ng Pilipinas,
their duly authorized officers or employees are prohibited
from disclosing information obtained under this Section to
any person, government officials, bureau or office.
Any act done pursuant to this Section shall not b deemed
as a violation of Republiic Act No. 1405, as amended,
Republic Act No. 6426, as amended, Republic Act No.
8791, and the other similar laws protecting or
safeguarding the secrecy or confidentiality of bank
deposits.
AUTHORITY TO EXAMINE DEPOSIT
RECORDS
Any unauthorized disclosure of the information
under this Section shall be subject to the same
penalty under the laws protecting the secrecy of
confidentiality of bank deposits. ( As amended
by R.A. NO. 11840, 20 JULY 2022)
The provision of this Section not withstanding, the
Monetary Board may take other actions under
existing laws that it may deem necessary. (As
