PDIC Flashcards
What are the three basic functions of PDIC?
i. they are the deposit insurer
ii. they act as co-regulator of banks
iii. they are the receiver and liquidator of closed banks
What is the maximum deposit insurance coverage of PDIC?
Since June 2009, the Maximum Deposit Insurance Coverage or MDIC is P500,000 per
depositor per bank.
Shall the depositor pay any insurance premium to PDIC?
No. Insurance premium is paid by the banks, not by the depositors.
What specific risks to a bank does PDIC cover?
PDIC covers only the risk of a bank closure ordered by the Monetary Board.
Can PDIC insurance coverage be increased by having several accounts in the same name in an
insured bank?
No. Deposit insurance coverage is not determined on a per-account basis.
Are all banks members of PDIC?
Yes. Membership of banks to PDIC is mandatory; hence, all operating banks are
members of PDIC.
When should the PDIC pay the claims filed?
The claims for insured deposit should be settled within six (6) months from the date of
filing provided all requirements are met but the claim must be filed within twenty-four
(24) months after bank takeover.
What is NOT covered by the PDIC Deposit insurance?
What is NOT covered by the PDIC Deposit insurance?
* Investments products such as bonds, securities and trust accounts.
* Deposit accounts which are unfunded, fictitious or fraudulent.
* Deposit products constituting or emanating from unsafe and unsound banking practices.
* Deposits that are determined to be proceeds of an unlawful activity as defined under
the Anti-Money Laundering Law.
What would be your PDIC deposit insurance coverage if you have several types of accounts in a
bank?
The PDIC insurance coverage is still up to Php 500,000 in total and will not increase. The
type of account has no bearing on the amount of insurance coverage because it is not
determined on a per-account basis.
What is your PDIC deposit insurance coverage if you have deposits on different banks?
The deposit insurance coverage will be up to 500,000 per bank. Deposits in different
banking institutions are insured separately. However, if a bank has two or more
branches, the main office and all branch offices are considered as one bank.
