Higher bank deposit insurance sought

February 23, 2020

SENATOR Ramon “Bong” Revilla is pushing for a measure seeking to increase the maximum deposit insurance coverage for bank depositors from P500,000 to P1 million.

Revilla  filed Senate Bill No. 1260 amending the insurance coverage for the depositing public.

“This will help invite the public to deposit their money in banks and encourage the existing bank clients to increase their deposits,” Revilla said.

“Apart from the benefits that individual depositors will enjoy, it will also redound to advantages in the macro level by invigorating our financial system and the economy as a whole,” he added.

Revilla said SBN 1260, also known as An Act Further Increasing the Maximum Deposit Insurance Coverage, Amending For This Purpose Republic Act No. 3591, As Amended, Otherwise Known As The Philippine Deposit Insurance Corporation (PDIC) Charter, also seeks to increase the present P500,000 maximum insured deposits on joint accounts to P1 million.

Under current laws, joint account shall be insured separately from any individually-owned deposit account.

PDIC, an attached agency of the Department of Finance (DOF), is mandated to insure the deposits of all banks to protect the depositing public from illegal schemes and promote financial stability.