PDIC boosts efforts to promote financial stability

CEBU, Philippines — The Philippine Deposit Insurance Corporation (PDIC) has strengthened its efforts to promote financial stability. From June 16 to 22, 2024, it will lead the nationwide observance of the Depositor Protection and Awareness (DPAW) campaign.

Now in its second year, this year’s theme bannered “Deposit Insurance: Proteksyong Maaasahan sa Ipong Pinaghirapan,” highlighting deposit insurance's relevance as a reliable protection for hard-earned savings in banks.

According to PDIC, deposit insurance, one of the pillars of financial stability, is part of the safety net the government provides through the PDIC. It assures that hard-earned deposits entrusted to banks are protected up to the maximum deposit insurance coverage (MDIC) against bank failures.

As the state deposit insurer, the PDIC protects depositors by providing deposit insurance up to the MDIC of P500,000 per bank. With the deposit insurance provided by the PDIC, depositors are afforded security and peace of mind.

Besides individual depositor protection, deposit insurance is also critical in promoting financial stability by-- heightening public confidence that entices individuals to save more in banks, which help grow the economy, ensuring that the depositing public continues to use banking services such as opening a deposit account, online banking, cash transfer, bills payment and loans, without the fear of losing their savings; helping ensure banks adhere to risk management standards, which lead to a stable banking system.

Presidential Proclamation No. 358, issued in April 2003, declared the annual observance of DPAW, an initiative that supports the government's pursuit of sustainable economic development and aims to bolster the stability of the banking system by fostering confidence in the banking system.

To help heighten awareness of the importance of deposit insurance and reach as many Filipino savers as possible, the PDIC encouraged banks and its partner institutions to assist in promoting the 22nd DPAW by displaying information and communication materials on their premises, websites, and digital platforms, such as social media accounts throughout the week-long observation.

Banks were also enjoined to display the 22nd DPAW digital banner and other digital materials on their ATMs and information monitors in Head Offices and branches.

PDIC is a Philippine government-run deposit insurance fund. It was established on June 22, 1963, by Republic Act 3591. It guarantees deposits up to P500,000. The primary function of PDIC is to protect small investors/depositors and build strong confidence in banking. — (FREEMAN)