Doubled bank deposit insurance of P1M to take effect on March 15

Philippine Deposit Insurance Corp. (PDIC). INQUIRER FILE PHOTO

MANILA, Philippines — Starting tomorrow, March 15, the new maximum deposit insurance coverage (MDIC) of P1 million per depositor per bank will take effect.

The new MDIC — which was doubled from P500,000 previously — is projected to protect over 147 million deposit accounts and P5.3 trillion funds in 2025, the Philippine Deposit Insurance Corp. (PDIC) said at a press conference.

READ: PDIC doubles bank deposit insurance to P1M

The law says the MDIC may be adjusted “in case a condition occurs that threatens the monetary and financial stability of the banking system that may have systemic consequences.” Any change of the MDIC must have the PDIC board’s unanimous vote.

Also, the MDIC is up for revisiting every three years and the PDIC board of directors is authorized to increase it, if necessary, with the approval of the President.