PDIC now covers Islamic banks deposits

Islamic banks (IBs) and Islamic banking units (IBUs) are now officially covered by the Philippine Deposit Insurance Corporation (PDIC), ensuring their deposits have the same protection as conventional bank deposits.

Deposits in Islamic banks are insured up to the maximum deposit insurance coverage (MDIC) of PHP 1 million per depositor, per bank.

PDIC President and CEO Roberto Tan stated that this expansion of deposit insurance aims to foster confidence in the Islamic banking system.

This move aligns with the national government's goal of promoting financial inclusion and strengthening the Islamic banking sector in the Philippines.

As of the end of December last year, there were 12,514 Islamic deposit accounts in the banking system.

Islamic banks and IBUs offer Shari'ah Law-compliant financial products and services, emphasizing ethical financing, risk-sharing, and socially responsible practices.