DOF: PHP107B PDIC remittance won't affect reserves; DIF remains robust at PHP250B

The Department of Finance (DOF) stated that the PHP107-billion remitted by the Philippine Deposit Insurance Corporation (PDIC) to the national government are unrestricted funds available for other purposes without affecting PDIC's reserve funds.

Finance Secretary Ralph Recto assured the public that the PDIC still maintains a robust reserve fund worth PHP250 billion, known as the Deposit Insurance Fund (DIF), which is well above international standards and sufficient to cover risks in the banking system.

The DOF highlighted that the DIF, intended for deposit insurance payouts and financial assistance during emergencies, remains intact at 5.5 percent of estimated insured deposits, within the PDIC Board's target range of 5 to 8 percent.

As of November 2024, the PDIC had only paid PHP282.31 million in claims for deposit insurance liabilities and provisions PHP3 billion monthly to build up and maintain the DIF ratio.

The remitted funds significantly contributed to funding major infrastructure and social programs such as disaster-related projects, rural electrification efforts, and various foreign-assisted initiatives.