PDIC doubles deposit insurance to P1 million

Starting March 15, the Philippine Deposit Insurance Corporation (PDIC) doubled its maximum deposit insurance coverage (MDIC) from P500,000 to P1 million per depositor per bank.

This adjustment is projected to fully insure over 147 million accounts, representing 98.6 percent of total deposit accounts in the local banking system.

In terms of amount, P5.3 trillion in depositor funds will be safeguarded, accounting for 24.1 percent of total deposits, a significant increase from the previous 18.4 percent.

Amendments to the PDIC charter in 2022 allow the PDIC to adjust the MDIC based on inflation and economic indicators without requiring a new law.

The MDIC can be adjusted if a condition threatens the monetary and financial stability of the banking system, and any change requires a unanimous vote from the PDIC board.