PDIC LAW

Question 1

PDIC Law was established on

Answer 1

June 22, 1963

Question 2

Republic Act No. 3591

Answer 2

Philippine Deposit Insurance Corporation Law

Question 3

PDIC Law as amended by

Answer 3

R.A 9302 of August 22, 2004 and R.A 9576 of April 29,2009

Question 4

The corporation is mandated to give bank depositors protection and financial stability by

Answer 4

Providing permanent and continuing deposit insurance.

Question 5

Three basic functions of PDIC:

Answer 5

1, Deposit Insurer
2. Act as co-regulator of banks
3. Receiver and liquidator of closed banks

Question 6

Maximum deposit insurance coverage of PDIC?

Answer 6

P500,000 per depositor per bank

Question 7

If Junjun had P850,000 in a savings account at the time the bank closed, how much will he get from PDIC?

Answer 7

P500,000

Question 8

According to PDIC, deposits are considered valid if

Answer 8

The deposits are recorded in the bank’s record and are evidenced by inflow of cash.

Question 9

Deposit Types:

Answer 9

1. Savings
2. Special Savings
3. Demand/Checking
4. Negotiable Order of Withdrawal (NOW)
5. Time Deposits

Question 10

Deposit Accounts:

Answer 10

1. Single Account
2. Joint Account
3. Account “By”/ “In Trust For” (ITF)/ and “For The Account of” (FAO)

Question 11

Which banks are members of the PDIC?

Answer 11

All operating banks are members of the PDIC as it is mandatory.
(commercial, savings, mortgage, development, rural, cooperative, stock savings, loan associations, domestic branches of foreign banks)

Question 12

What specific risks to a bank does PDIC cover?

Answer 12

Risk of a bank closure ordered by the Monetary Board

Question 13

T/F: Bank losses due to theft, fire, and revolution or civil war are covered by PDIC.

Answer 13

False: PDIC only covers the risk of a bank closure ordered by the Monetary Board.

Question 14

Who pays the insurance premium to the PDIC?

Answer 14

Banks: Insurance premium is paid by the banks not by the depositors.

Question 15

R.A 9576 stipulates that PDIC will not pay deposit insurance for the ff:

Answer 15

1. Investment products (bonds, securities, and trust accounts)
2. Deposit accounts that are unfunded, fictitious, and fraudulent.
3. Deposit products constituting or emanating from unsafe and unsound banking processes.
   4.Deposits that are determined to be proceeds of an unlawful activity.

Question 16

Junjun had P700,000 in a savings account in Bank A and another P600,000 in a checking account also in Bank A. If Bank A closes, how much will Junjun get from PDIC?

Answer 16

P500,000 - the deposit insurance coverage is not determined on a per-account basis.

Question 17

Junjun had P400,000 in a savings account in Bank A and another P700,000 in a savings account in Bank B. How much will he get from PDIC if both banks closes?

Answer 17

Junjun will get P400,000 for his saving as account in Bank A and P500,000 for his savings account in Bank B.

Question 18

When claiming PDIC deposit, the depositor must file his deposit insurance claim within

Answer 18

24 months from the date of bank takeover.