Bank deposit coverage decals now available

CEBU, Philippines – The Philippine Deposit Insurance Corporation issued Bulletin No. 2009-27 for all its member banks specifying guidelines and procedures on posting, display and procurement of PDIC decals and stickers bearing the new maximum deposit insurance coverage of P500,000.

In a statement, PDIC said that the issuance is in connection with the effectivity of Republic Act 9576 or the amended PDIC Charter on June 1, 2009.

PDIC advised member banks that orders for new decals and standees may be made either through mail, fax or online.

To recall, the maximum deposit insurance coverage (MDIC) for bank deposits starting June 1 was already doubled from P250,000 to P500,000.

PDIC said that the doubling of the MDIC through the passage of Republic Act No. 9576 would mean to promote and safeguard the interests of the depositing public.

A total deposit account of 97.2 percent in banking system is protected with deposit insurance as the law is prospective in nature.

PDIC however clarified that the higher MDIC will apply only to deposits in banks ordered closed by the Monetary Board on June 1 onward.

The amended Charter also granted PDIC powers to enhance its oversight on banks as well as mitigate the moral hazard posed by the increased coverage to the Deposit Insurance Fund.

The DIF is the funding source for deposit insurance claims payment.

The amended law also strengthened PDIC’s regulatory oversight on banks through new authorities such as the conduct of special bank examinations, determination of products eligible for deposit insurance and examination of deposit accounts of ailing banks. — Mitchelle L. Palaubsanon/BRP (THE FREEMAN)