After deposit insurance coverage raised to P1M from P500K
Depositors are now more confident entrusting their hard-earned money with financial institutions, given a higher maximum deposit insurance coverage (MDIC) of P1 million, up from the previous P500,000, several banking groups said.
The Philippine Deposit Insurance Corp. (PDIC) recently announced that with the increase in MDIC to P1 million per depositor per bank, which was implemented on March 25 this year, this will benefit 147 million accounts that are insured.
Based on PDIC data as of end-2024, the fully insured accounts were up by 1.5 million with the new MDIC.
MDIC refers to the maximum amount of depositor’s money in an insured bank that is guaranteed as safe by the PDIC.
The new MDIC was welcomed by both banks and depositors, the PDIC said.
The deposit insurer conducted consultation meetings with the country’s major bank associations and officials when the new MDIC was about to be implemented.
Bankers Association of the Philippines (BSP) President Jose Teodoro Limcaoco said, “it’s a timely move given that limits have not been increased in years.” Limcaoco is also President and CEO of Bank of the Philippine Islands.
Chamber of Thrift Banks (CTB) President Mary Jane Perreras said the higher MDIC “reinforces trust in the banking system.” She said this is especially true for senior citizens and retirees “who rely on deposit security.”
Meanwhile, Rural Bankers Association of the Philippines (RBAP) President Jose Paolo Palileo said the higher deposit insurance encourages more depositors to trust banks.
