Moog, Mary Bernadine D.

BSBA FM IV-C PDIC - Budget and Disbursements Department

COMPANY PROFILE

What is PDIC?

PDIC is a government instrumentality created in 1963 by virtue of Republic Act 3591 to insure the deposits of all banks which are entitled to the benefits of insurance. The latest amendments to RA 3591 are contained in RA 9576 signed into law on April 29, 2009. RA 9576 increased the maximum deposit insurance coverage to P500,000. The new law also includes important provisions to ensure that the PDIC remains financially and institutionally strong to fulfil its mandate under its Charter.

The PDIC now has the authority to determine which deposit products are covered by insurance. The PDIC is also authorized to conduct independent special examination of banks and may inquire into or examine deposit accounts of ailing banks in the event there is a finding of unsafe and unsound banking practices.

Part of the financial strengthening measures for the PDIC, on the other hand, include exemption from taxes and the authority to issue sovereign bonds, debentures and other debt issuances. The PDIC is an attached agency of the Department of Finance.

What is PDIC overall mandate?

PDIC exists to provide permanent and continuing deposit insurance coverage for the depositing public to help promote public confidence and stability in the economy. It ensures prompt payment of insured deposits, exercises complementary supervision of banks, adopts responsive resolution methods, and applies efficient management of receivership and liquidation functions.

What are the functions of PDIC?

Deposit Insurer Co-regulator of Banks Receiver and Liquidator of Closed Banks

What is PDIC’s maximum deposit insurance coverage?

Effective June 1, 2009, the maximum deposit insurance coverage id P500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. Under R.A. No. 9576, the PDIC may propose to adjust the MDIC, subject to the approval of the President of the Philippines, in case of a condition that threatens the monetary and financial stability of the banking system that may have systematic consequences.

What is an insured deposit?

The term ‘insured deposit’ means the amount due to any bona fide depositor for legitimate deposits an insured bank net of any obligation of the depositor to the insured bank as of date of closure, but not to exceed P500,000. A joint account shall be insured separately from any individually-owned deposit account.

R.A. N. 9576 stipulates that PDIC will not pay deposit insurance for the following accounts or transactions:

1. Investment products such as bonds, securities and trust accounts;

2. Deposit accounts which are unfunded, fictitious or fraudulent;

3. Deposit products constituting or emanating from unsafe and unsound banking practices;

4. Deposits that are determined to be proceeds of an unlawful activity as defined under the Anti-Money laundering Law.

Are all banks members of PDIC?

Membership of banks to PDIC is mandatory; hence, all operating banks are members of PDIC.

What types of deposits are insured by PDIC?

Except for the exclusions stipulated in RA 9576, deposits of all commercial banks, savings and mortgages banks, rural banks, private development banks, cooperative banks, savings and loan associations, as well as branches and agencies in the Philippines of foreign banks and all other corporations authorized to perform banking functions in the Philippines, are insured with PDIC. As for Philippine banks with branches outside the country, RA 9576 stipulates that subject to the approval of the Board of Directors, any insured bank with branch outside the Philippines may elect to include for insurance its deposit obligations payable at such branch.

Foreign currency deposits are also insured by PDIC pursuant to RA 6426 (“An act instituting a foreign currency deposit system on the Philippines and for other purposes”) and Central Bank (CB) Circular No. 1389. Depositors may receive payment in the same currency in which the insured deposit is denominated.

Exclusions from deposit insurance coverage as stipulated in R.A. No. 9576:

1. Investment products such as bonds, securities and trust accounts;2. Deposit accounts which ate unfunded, fictitious or fraudulent;3. Deposit products constituting or emanating from unsafe and unsound

banking practices;

4. Deposit that are determined to be proceeds of an unlawful activity as defined under the Anti-Money Laundering Law.

BOARD OF DIRECTORS

Hon. Cesar V. Purisima

CHAIRMAN Secretary, Department of Finance

Hon. Valentin A. Araneta

VICE CHAIRMAN

President, Philippine Deposit Insurance Corporation

Hon. Amando M. Tetangco Jr.

MEMBER

Governor, Bangko Sentral ng Pilipinas

Hon. Rogelio W. Manalo

Member

Private Sector Representative

Hon. Protacio T. Tacandong

MEMBER

Private Sector Representative

PDIC MANAGEMENT

Valentin A. Araneta

President

Imelda S. Singzon

Executive Vice-President, Examination and Resolution Sector

Cristina Que-Orbeta

Executive Vice President, Receivership and Liquidation Secor

Romeo M. Mendoza Jr.

Senior Vice President and General Counsel

Sandra A. Diaz

Senior Vice President, Deposit Insurance Sector

Ma. Ana Carmela L. Villegas

Senior Vice President, Management Services Sector

Alma Teresa R. Manalog

Senior Vice President, Corporate Services Sector