MANILA, Philippines -- President Gloria Macapagal-Arroyo has approved a proposal by her economic managers to increase the maximum coverage by the Philippine Deposit Insurance Corp. (PDIC) for bank deposits from P250,000 to P1million, Malacañang officials said Tuesday.

Executive Secretary Eduardo Ermita said the President felt that the move was a "proportionate response" to the global financial crisis.

"This will give the pubic a sense of security... There will be a feeling of security among depositors in the face of what is happening in the world," Press Secretary Jesus Dureza said.

Dureza said the increase would need accompanying legislation.

Arroyo also welcomed the proposals of United State President George W. Bush and United Nations Secretary General Ban Ki Moon to hold a world summit on the financial crisis.

"She [Arroyo] underscored the importance of going into this meeting," Ermita said.