Philippine Deposit Insurance Corporation (PDIC) (RA 3591, as

amended by RA 9302)
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1. 1. If the account is held jointly by two or more natural ... 8. Are Insured Deposits Paid by Yes. All payments by
persons, or by two or more juridical persons or entities, PDIC to the Depositor Preferred PDIC of insured
the maximum insured deposit shall be divided into as Credits under Art. 2244 Against deposits in closed
many equal shares as there are individuals, juridical the Close Bank? banks partake of the
persons or entities, unless a different sharing is nature of public funds,
stipulated in the document of deposit; and and as such, must be
considered a preferred
2. 2. If the account is held by a juridical person or entity ...
credit similar to taxes
with one or more natural persons the maximum insured
due to the National
shall be presumed to belong entirely to such juridical
Government in the
person or entity.
order of preference
3. 2. PDIC, may, in coordination with the Bangko Sentral, ... under Art. 2244 of the
conduct a special examination as the Board of Directors, Civil Code (Sec. 15).
by an affirmative vote of a majority of all its members, if
9. Basic Policy To insure the deposits
there is a threatened or impending closure of a bank.
of all banks which are
(Sec. 8, R.A. 3591, as amended)
entitled to the benefits
4. 2. Subject to the approval of the Board of Directors, any ... of insurance under this
insured bank which is incorporated under the laws of Act.
the Philippines which maintains a branch outside the
Philippines may elect to include for insurance its To promote and
deposit obligations payable only at such branch (Sec. 2). safeguard the interests
5. 3. Investment products such as bonds and securities, ... of the depositing public
trust accounts, and other similar instruments; by way of providing
permanent and
4. Deposit accounts or transactions which are continuing insurance
unfounded, or that are fictitious or fraudulent; coverage on all insured
deposits (Sec. 1)
6. 5. Deposit accounts or transactions constituting, or ...
emanating from unsafe and unsound banking practices; 10. But may be increased by an ...
additional 10% of the net worth of
6. Deposits that are determined to be the proceeds of such bank provided the additional
an unlawful activity under RA 9160 or Anti-Money liabilities of any borrower are
Laundering Law; adequately secured by trust
receipts, shipping documents,
7. 7. Deposit accounts that result from splitting of ...
warehouse receipts or other
deposits; and
similar documents transferring or
securing title covering readily
8. Money placements by the head office of foreign
marketable, non-perishable good
bank in its branch in the Philippines (PDIC vs. Citibank).
which must be fully covered by
insurance.
11. Commencement of Liability When an insured bank is
closed by the Monetary
Board pursuant to Sec.
30 of RA 7653.
12. Concept of The term "insured deposit" means the 17. Effect of Splitting of Deposits This is a criminal act and
Insured amount due to any bona fide depositor for the deposits are not
Deposits legitimate deposits in an insured bank as of entitled to any insurance
date of closure, but not to exceed Five payment.
hundred thousand pesos (P500,000.00).
It is punishable by prision
In determining such amount due to any mayor or a fine of not
depositor, there shall be added together less than P50,000 but not
all deposits in the bank maintained in the more than P2 million, or
same right and capacity for his benefits both, at the discretion of
either in his own name or in the name of the court [Sec. 21 (f)].
others.
18. Exception: The Supreme Court ...
13. Deposit The deposit liabilities of any bank engaged may issue a restraining order or
Liabilities in the business receiving deposits are injunction when the matter is of
Required to be required to be insured with the PDIC. extreme urgency involving
Insured with constitutional issue, such that
PDIC (Sec. 4) unless a temporary restraining
order is issued, grave injustice
14. Deposits Not PDIC shall not pay deposit insurance for
and irreparable injury will arise.
Covered by the following:
Insurance 19. Extent of Liability Liability covers the
1. The amount in excess of insured deposit amount due to any
of P500,000; depositor for deposits in
an insured bank as of the
2. Deposit that is payable in a place date of closure, but not to
outside the Philippines; exceed P500,000.00.
15. Determination The Corporation shall commence the 20. How is the Amount Due A joint account regardless
of Insured determination of insured deposits upon its Determined in Case of Joint of whether the
Deeposits actual takeover of the closed bank. Account? conjunction "and", "or",
"and/or" is used, shall be
In order that a claim for deposit insurance insured SEPARATELY from
with the PDIC may prosper, the law any individually owned
requires that a corresponding deposit be deposit account:
placed in the insured bank. A deposit as Provided, that:
defined in Section 3(f), may be constituted
21. How to Determine the Amount In determining such
only if money or the equivalent of money
Due to a Depositor? amount due to any
is received by a bank.
depositor, there shall be
16. Does PDIC's No. Notwithstanding the provisions of added together all
Inquiry or Secrecy of Bank Deposits, Foreign deposits in the bank
Examination of Currency Act, General Banking Law, and maintained in the same
Deposit other laws, the PDIC and/or the BSP may right and capacity for his
Accounts inquire into or examine deposit accounts in benefit either in his own
Violate the case there is a finding of UNSAFE or name and the name of the
Laws Regarding UNSOUND banking practice (Section 8 others.
Secrecy of R.A. 3591, as amended)
Bank Deposits?
22. Is Prior No. Investigation and examination are 29. What are the 1. By cash; or
Approval of distinct procedures under the charter of the Modes of
the Monetary PDIC and the BSP. Payment of an 2. By making available to each depositor a
Board Insured transferred deposit in another insured bank
Necessary The power of investigation covers all fact‐ Deposit? in an amount equal to insured deposit of
When PDIC finding investigations on fraud, irregularities such depositor (Sec. 14).
Conducts and/or anomalies committed in banks that
30. What are the Demand, savings and time deposits. If the
"Investigation" are conducted by PDIC based on
Types of depositor has all three types of accounts
of Banks? complaints from depositors or other
deposits with the same bank, he can only recover up
government agencies and/or final reports of
covered? to P500,000. He is considered one
examinations of banks conducted by the
depositor.
BSP and/or PDIC. (PDIC vs. Philippine
Countryside Rural Bank) 31. What are They refer to actions or lack of actions
Unsafe or which are contrary to generally accepted
23. Is the Liability Per bank basis.
Unsound standards of prudent operation.
of PDIC on a
Banking
Per Bank or
Practices?
Per Branch
Basis? 32. What is a The unpaid balance of money or its
Deposit? equivalent RECEIVED by a bank in the usual
24. Period of The claim must be filed within 2 years from
course of business and for which it has
Filing Claims the ACTUAL TAKEOVER of the bank by the
given or is obliged to give credit to a
receiver.
commercial, checking, savings, time or thrift
25. Single This is the total amount of loans, credit account, or issued in accordance with BSP
Borrower's accommodations and guarantees that may rules and regulations and other applicable
Limit (The be extended by a bank to any person, laws.
Ceiling) partnership, association, corporatiom or
33. What is Period 2 years from the closure of the bank by the
other entity shall NOT EXCEED 25% of the
by which a BSP.
net worth of such bank.
Depositor of
26. What are 1. The unpaid balance of money or its Insured
Deposits equivalent received by a bank in the usual Deposits may
Covered by course of business and for which it has File his Claim?
Insurance? given of is obliged to give credit to a
34. What is the It constitutes a waiver of depositor's right to
commercial, checking, savings, time or thrift
Effect of claim if he fails to claim his insured deposits
account, or issued in accordance with BSP
Failure by a with the PDIC within 2 years from actual
rules and regulations and other applicable
Depositor to takeover of the closed bank by the receiver,
laws, together with such other obligations of
Claim Insured unless otherwise waived by PDIC. (Sec.
a bank, which, consistent with banking usage
Deposits 16(e) R.A. 3591, as amended)
and practices, the Board of Directors shall
Within the
determine and prescribe by regulations to
Prescribed
be deposit liabilities of the bank; and
Period?
27. What are Restrictions (not total prohibition) are
35. What is the General Rule: Where such failure was due to
DORSI imposed on borrowings and security
Effect of grave abuse of discretion, gross negligence,
Accounts? arrangement by directors, officers and
Failure to bad faith, or malice, shall, upon conviction,
stockholders of the bank Directors, Officers,
Settle Claim subject the directors, officers or employees
Stockholders and their Related Interests
of Insured of PDIC responsible for the delay, to
(DOSRI).
Depositor imprisonment from 6 months to 1 year.
28. What are the 1. PDIC is DISCHARGED from any further Within the 6
Effects of liability to the depositor; Month Period? Exception: Period shall not apply if the
Payment to validity of the claim requires the resolution
the Depositor 2. PDIC is SUBROGATED to all the rights of of issues of facts and or law by another
of his Insured the depositor against the closed bank to the office, body or agency. (Sec. 14, RA 3591, as
Deposit? extent of such payment. amended)
36. What is the The amount due to any depositor for 41. When is an An insured bank shall be deemed to have
Extent of the deposits in an insured bank net of any Insured Bank been closed on account of insolvency
PDIC's obligation of the depositor to the insured Deemed Closed? when ordered closed by the MB of the
Liability to a bank as of the date of closure, but not to BSP.
Bank exceed P500,000 per depositor.
42. When may PDIC 1. PDIC may conduct examination of
Depositor?
Exercise its banks with prior approval of the
37. What is the PDIC has 6 months from the date of filing of Power to Monetary Board. However, no
Period by claim for insured deposit. Examine Banks? examination can be conducted within 12
which PDIC months from the last examination date;
shall Settle a and
Claim of
43. When may PDIC PDIC may inquire into or examine
Insured
Exercise its deposit accounts and all information
Depositor?
Power to Inquire related thereto in case there is a finding
38. What is the General Rule: No court, except the CA, shall or Examine of unsafe or unsound banking practice
Rule issue any TRO, preliminary injunction or Deposit (Sec. 8).
regarding preliminary mandatory injunction against Accounts?
Issuances of PDIC for any action under R.A. 3591, as
44. When Payment is The proceeds of the insurance shall be
TROs, etc. amended. Such prohibition applies in all
Made? paid by the PDIC to the depositor
Against PDIC cases instituted by a private party, the
whenever the insured bank is CLOSED on
for Acts insured bank, or any shareholder of the
account of insolvency.
under R.A. insured bank.
3591, as
amended?
39. When and When: Upon its actual takeover of the
How shall closed bank.
PDIC
Commence How: PDIC shall give notice to the
the depositors of the closed bank of the insured
Determination deposits due them by whatever means
of Insured deemed appropriated by the Board of
Deposits Due Directors. PDIC shall publish the notice
the once a week for at least 3 consecutive
Depositors of weeks in a newspaper of general circulation
a Closed or in a newspaper circulated in the
Bank? community where the closed bank or its
branches are located. (Sec. 1, RA 3591, as
amended).
40. When Does Whenever a deposit account exceeds
Splitting of P500,000 is broken down and transferred to
Deposit two or more accounts in the name of
Occur? persons who have no beneficial ownership
on transferred deposits within 120 days
immediately preceding or during a bank-
declared bank holiday or immediately
preceding a closure order issued by the MB
of the BSP.

Purpose: To avail the maximum deposit

insurance coverage.