PDIC covers Islamic bank deposits up to PHP1M

Islamic banks and Islamic banking units in the Philippines are now covered by the country's deposit insurance system, according to the Philippine Deposit Insurance Corporation (PDIC).

Deposits in these institutions are insured up to PHP1 million per depositor, per bank, similar to conventional deposits.

PDIC President Roberto Tan emphasized that this move fosters confidence in the Islamic banking sector and aligns with the government's goal of promoting financial inclusion.

As of December 2024, there were 12,514 Islamic deposit accounts in the country.

Islamic banks offer products and services compliant with Shari'ah Law, focusing on ethical financing and risk-sharing practices.

This expansion is expected to encourage more individuals and businesses to save through Islamic banking institutions.