PDIC

• PDIC


  Philippine Deposit Insurance Corporation (created by RA 3591, as amended) to insure the deposits of banks which are entitled to the benefits of insurance
• PDIC


  • Provides deposit insurance coverage for the depositing public to help promote public confidence and stability in the economy
  • Ensures prompt payment of insured deposits
  • Exercises complementary supervision of banks
  • Adopts responsive resolution methods
  • Applies efficient management of receivership and liquidation functions
• PDIC covers only the risk of a bank closure ordered by the MB. Thus, bank losses due to theft, fire, closure by reason of strike or existence of public disorder, revolution or civil war are not covered by PDIC
• It is mandatory for banks to insure their deposits with, and pay premium to, the PDIC
• Insured deposit


  The amount due to any bona fide depositor for legitimate deposits in an insured bank as of the date of closure but not to exceed Five Hundred Thousand Pesos (PhP500,000.00)
• No owner/holder of any passbook, certificate of deposit, or other evidence of deposit shall be recognized as a depositor entitled to the rights under the PDIC Charter unless the passbook, certificate of deposit or evidence of deposit is determined by the PDIC to be an authentic document or records of the issuing bank
• Determination of amount due

  1. Add together all deposits in the bank maintained in the same right and capacity for his benefit either in his own name or in the name of others

  2. If a bank has one or more branches, the main office and all branch office are considered as one bank

  3. A joint account regardless of whether the conjunction "and," "or," "and/or" is used, shall be insured separately from any individually-owned deposit account

  4. If the account is held jointly by two or more natural persons, or by two or more juridical persons or entities, the maximum insured deposit shall be divided into as may equal shares as there are individuals, juridical persons or entities, unless a different sharing is stipulated in the document of deposit

  5. 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

  6. The aggregate of the interest of each co-owner over several joint accounts, whether owned by the same joint accounts, whether owned by the same or different combinations of individuals, juridical persons or entities, shall likewise be subject to the maximum insured deposit of PhP500,000.00
• When payment is due

  • The proceeds of the insurance should be paid by the PDIC within six (6) months to the depositor counted from the filing of the claim whenever the insured bank is closed on account of insolvency
  • The claim must be filed within two (2) years from actual takeover by the receiver
• The insurance coverage may be terminated if a bank does not comply within thirty (30) days from receipt of notice, with a cease and desist order issued by the PDIC relating to a deposit-related unsafe or unsound bank practice
• Unclaimed balances


  1. Deposits that have become dormant for a period of ten (10) years may be escheated in favor of the government

  2. Initially, there should be notice to the depositor of the unclaimed balance. Thereafter, the bank is required to report (sworn statement) to the Treasurer of the Philippines the existence of such deposits. The Treasurer will in turn inform the Solicitor General who will then initiate the proper escheat proceedings in Court

  3. Publication of a list of unclaimed balances is also required in order to safeguard the right of the depositors, their heirs, and successors in interest to due process

  4. Such unclaimed balances, together with the increase and proceeds thereof, shall be deposited with the Treasurer of the Philippines to the credit of the Government of the Republic of the Philippines to be used as the Congress may direct