STARTING this Saturday, 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.
“The increase in the MDIC was approved by the PDIC Board of Directors to provide enhanced protection and more confidence for the depositing public,” the PDIC previously said.
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.
Meanwhile, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the higher deposit insurance coverage would provide the depositing public with greater confidence.
“This would also respond to higher prices to be more attuned to the realities in terms of sufficiency of deposit insurance coverage,” he said.
Ricafort said this would further support greater confidence and the stability of the local banking system. (Philippine Daily Inquirer/with report from Philippine News Agency)
