BEGINNING March 15, 2025, state deposit insurer Philippine Deposit Insurance Corporation (PDIC) sets the maximum deposit insurance coverage (MDIC) from P500,000 to P1 million per depositor per bank, providing enhanced protection for depositors.
This marks a historic milestone as the first independent adjustment in the MDIC by the PDIC following recent amendments to Republic Act 3591, as amended or the PDIC Charter. Under the amended PDIC Charter, the PDIC Board of Directors now has the authority to adjust the MDIC without requiring approval from Congress, enabling more timely responses with respect to deposit insurance.
In determining the new MDIC level, the PDIC’s primary considerations included inflation trends and the nominal gross domestic product (GDP) per capita. Adjusted for inflation, the previous MDIC of P500,000 set in 2009 now approximately equates to P1 million between 2025 and 2027. The adjusted MDIC aligns with international benchmarks, reflecting about four times the Philippines’ nominal GDP per capita, which is consistent with deposit insurance frameworks in 18 economies of similar size.
Meanwhile, the PDIC assured banks that the adjustment in the MDIC will not result in an increase in the current assessment rate levied on banks at 1/5 of 1% of banks’ total deposit liabilities, helping sustain financial stability.
The increased MDIC strengthens financial security for depositors, offering greater peace of mind in the event of bank failures. Depositors are encouraged to visit the official platforms of the PDIC for more details on the adjusted MDIC such as its website at www.pdic.gov.ph, Facebook page at www.facebook.com/OfficialPDIC, and YouTube channel at www.youtube.com@PDICOfficial.
