01 Pdic
01 Pdic
Philippine Deposit
Insurance Corporation
(PDIC) Law
R.A. 3591, As amended
BRIEF BACKGROUND
• Government instrumentality created in 1963 by virtue of R.A. 3591
• PDIC is an attached agency of the Department of Finance
• Latest amendments are contained in R.A.10846
empowered PDIC with stronger authorities to protect the depositing public and
promote financial stability
PDIC now has the authority
Help depositors to have quicker access to their insured deposits should their bank close
Resolve problem banks while still open
Hasten liquidation process for closed banks
Mete out stiffer sanctions and penalties against those who engage in unsafe and unsound
banking practices
What is the purpose of the PDIC Law?
• Insure the deposits of all banks which are entitled to the benefits of
insurance
• If Peony has a deposit with BPI Bank and CBC Bank and
both banks closed, Peony is entitled to P500,000
insurance coverage for each bank.
Maximum Liability
Per Depositor, Per Capacity Rule
• all deposits in the bank maintained in the same right and
capacity for his benefit either in his own name or in the
name of others shall be added together in determining the
insured amount, and regardless of the type of account
Maximum Liability
Accounts “By”, “In Trust For (ITF)” or “For the Account
of (FAO)” another person:
1. “By” account (Claes by Bjork)
Claes is the depositor
2. “ITF” account (Claes ITF Bjork)
Bjork is the depositor
3. “FAO” account (Claes FAO Bjork)
Bjork is the depositor
Individual Accounts
All individual accounts of a depositor, including those
where ownership is vested, shall be insured to a maximum
of P500,000.
Individual Accounts
How much is Steff Go’s insured deposit if she has the
following deposits in the same bank?
Individual Accounts
How much is Steff Go’s insured deposit if she has the
following deposits in the same bank?
Joint Accounts
A joint account regardless of whether the conjunction “and”,
“or”, “and/or” is used shall be insured separately from any
individually owned deposit account, provided that:
a. Maria can claim a total of Php500,000 for all the three (3) accounts.
b. Maria can only claim from one (1) account of Php250,000.
c. Maria can claim a total of Php750,000 from all the three (3)
accounts.
d. Maria cannot claim anything from any of the deposit accounts.
2. The following are the functions of the PDIC, except
a. To investigate banks
b. To safeguard deposits
c. To audit bank financial statements
d. To liquidate closed banks
3. Rose had the following accounts with ZZZ Bank:
I. Savings account #001 under her name, P100,000.
II. Savings account #002 under her name, P80,000.
III. Savings account #003 named after Rose for the account of May,
P65,000.
IV. Savings account #004 under both Rose and May as co-depositors,
P44,000.
How much is the insured deposit of Rose?
a. P202,000
b. P224,000
c. P267,000
d. P289,000
4. A depositor is not required to file claims with the PDIC if
his accounts have a balance:
a. Only S1 is true.
b. Only S2 is true.
c. Both statements are true.
d. Both statements are not true.