PDIC

• Republic Act No. 9576 is 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), amending for this purpose Republic Act Numbered Three Thousand Five Hundred Ninety-One, as amended, otherwise known as the PDIC Charter, and for other purposes
• Deposit


  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 issued in accordance with Bangko Sentral rules and regulations and other applicable laws, together with such other obligations of a bank, which, consistent with banking usage and practices, the Board of Directors shall determine and prescribe by regulations to be deposit liabilities of the bank
• Deposit accounts or transactions not covered by deposit insurance


  • Investment products such as bonds and securities, trust accounts, and other similar instruments
  • Deposit accounts or transactions which are unfunded, or that are fictitious or fraudulent
  • Deposit accounts or transactions constituting, and/or emanating from, unsafe and unsound banking practice/s
  • Deposits that are determined to be the proceeds of an unlawful activity as defined under Republic Act No. 9160, as amended
• Insured deposit


  The amount due to any bona fide depositor for legitimate 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 Five hundred thousand pesos (P500,000.00)
• For the first three (3) years from the effectivity of this Act, the first Two hundred fifty thousand pesos (P250,000.00) of the deposit insurance coverage shall be for the account of the Corporation, and those in excess of Two hundred fifty thousand pesos (P250,000.00) but not more than Five hundred thousand pesos (P500,000.00) shall be for the account of the National Government
• Examination of banks by PDIC


  PDIC can conduct a special examination as the Board of Directors, by an affirmative vote of a majority of all of its members, if there is a threatened or impending closure of a bank
• PDIC, its directors, officers, employees and agents are held free and harmless to the fullest extent permitted by law from any liability, and they shall be indemnified for any and all liabilities, losses, claims, demands, damages, deficiencies, costs and expenses of whatsoever kind and nature that may arise in connection with the performance of their functions, without prejudice to any criminal liability under existing laws
• All tax obligations of the PDIC for a period of five (5) years reckoned from the date of effectivity of this Act shall be chargeable to the Tax Expenditure Fund (TEF) in the annual General Appropriations Act, and on the 6th year and thereafter, the PDIC shall be exempt from income tax, final withholding tax, value-added tax on assessments collected from member banks, and local taxes
• PDIC is authorized to issue bonds, debentures, and other obligations, both local or foreign, as may be necessary for purposes of providing liquidity for settlement of insured deposits in closed banks as well as for financial assistance, and such obligations shall be exempt from taxation both as to principal and interest, and shall be fully guaranteed by the Government of the Republic of the Philippines
• Splitting of deposits


  Whenever a deposit account with an outstanding balance of more than the statutory maximum amount of insured deposit maintained under the name of natural or juridical persons is broken down and transferred into two (2) or more accounts in the name/s of natural or juridical persons or entities who have no beneficial ownership on transferred deposits in their names within one hundred twenty (120) days immediately preceding or during a bank-declared bank holiday, or immediately preceding a closure order issued by the Monetary Board of the Bangko Sentral ng Pilipinas for the purpose of availing of the maximum deposit insurance coverage
• A joint congressional oversight committee is created to oversee the implementation of this Act