What is the law that established the Philippine Deposit Insurance Corporation?
Republic Act No. 3591
How shall joint accounts be insured?
A joint account shall be insured separately from any individually-owned deposit account.
The main function of PDIC
To insure the deposits of all banks which are entitled to the benefits of insurance.
What types of deposits are insured by the PDIC? (Cite 3 or 4)
Deposits in the following banks are insured by the PDIC:
- Commercial banks
- Savings and mortgage banks
- Private development banks
- Cooperative banks
- Savings and loan associations
- Branches and agencies in the Philippines of foreign banks
- Other corporations authorized to perform banking functions in the Philippines
The specific functions of the PDIC? (3 items)
- Deposit insurer
- Co-regulator of banks
- Receiver and liquidator of closed banks
Are deposits in foreign currency insured?
Yes, foreign currency deposits are insured.
Depositors may receive payment in the same currency in which the insured deposit is denominated.
What if the depositor has more than one account but in different banks?
Deposits in different banking institutions are insured separately.
Are deposits in Philippine banks with branches outside the Philippines insured by the PDIC?
The BoD of such insured bank with branch outside the Philippines may elect to include for insurance its deposit obligations payable at such branch.
What if the depositor has more than one account but in different branches of the same bank?
If a bank has one or more branches, the main office and all branch offices are considered as one bank.
Thus, if you have deposits at the main office and at one or more branch offices of the same bank, the deposits are added together when determining deposit insurance coverage, the total of which shall not exceed P500,000.
What accounts or deposits will not have deposit insurance? (Republic Act No. 9576 amending R.A. No. 3591)
- Investment products such as bonds, securities and trust accounts
- Deposit accounts which are unfunded, fictitious or fraudulent
- Deposit products constituting or emanating from unsafe and unsound banking practices
- Deposits that are determined to be proceeds of an unlawful activity as defined under the Anti-Money
Laundering Law
What is an insured deposit?
the amount due to any bona fide depositor for legitimate deposits in an insured bank net of any obligation of the depositor to the insured bank as of date of closure, but not to exceed P500,000.
What happens to uninsured deposit in excess of P500,000?
The claim for the uninsured portion of the deposit is a claim against the assets of the closed bank.
Who are not required to file deposit insurance claims?
Depositors with valid deposit accounts with balances of P100,000 and below are not required to file claims, provided they:
- have no obligations with the closed bank, or have not acted as co-makers of these obligations, or are not spouses of the borrowers
- have complete mailing address found in the bank records or have updated their addresses through the Mailing Address Update Form (MAUF) of PDIC before the start of the onsite claims settlement operation
- have not maintained the account under the name of business entities
What if the depositor has more than one account in one bank?
All deposit accounts (checking,savings, time or other form of deposit) by a depositor in a closed bank maintained in the same right and capacity shall be added together.
Then shall be subjected to the P500T max rule.
What is the amount of insured deposit?
The insured deposit is net of any obligation of the depositor to the insured bank as of the date of closure, but not to exceed P500T.
