deposit insurance and financial stability. outline - what pdic is about - road map - structure of...
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Deposit Insurance and Financial Stability
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Outline
- What PDIC is about
- Road Map
- Structure of the Banking System
- Going Forward
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The Functions of PDIC
1. Depositor Protection through Deposit Insurance
2. The Management of the Deposit Insurance Fund (DIF)
3. Bank Examination and Resolution
4. Receivership and Liquidation of closed banks
5. Financial Stability and Public Awareness
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PDIC Roadmap 2016
I. Early detection of bank weaknesses and fraud to prevent bank failure especially through fraud or mismanagement
II. Strengthening the organization and enhancing the financial and service capabilities of PDIC
III. Legislative agenda to pursue CBLA
IV. Public Engagement
V. Liquidation of non financial assets
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II. Strengthening the organization and enhancing the PDIC’s financial and service capabilities
Business Process Reviews to constantly adapt to the Business Process Reviews to constantly adapt to the challenges to deposit insurance and financial challenges to deposit insurance and financial stabilitystability
Maintain a robust organizational framework including Maintain a robust organizational framework including hiring, career pathing and training policieshiring, career pathing and training policies
IADI Core Principles IADI Core Principles
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III. Legislative agenda: Closed Bank Liquidation Act (CBLA)
Comprehensive law to govern the Takeover, Liquidation and Winding-Up of closed banks
Seamless transition through removal of the 90-day receivership period will be provided
Purchase and Assumption and Bridge Banking will be provided as additional modes of liquidation
PDIC’s authority on the Liquidation Process will be defined
Certain Exemptions to 1405
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IADI Core Principle No. 12
“In order for a deposit insurance system to be effective it is essential that the public be informed on an on-going basis about the benefits and limitations of the deposit insurance system.”
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Information Dissemination
Website
www.pdic.gov.ph
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Oversight on Interest Rates on Deposits
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BANKING INDUSTRY STRUCTUREAs of December 31, 2011(Amounts in Billion Php)
No. ofBanking % to Amount of % to
Area Offices Total Deposits Total
NCR 2,831 34.1% 3,639.7 67.8%Areas outside of NCR 5,472 65.9% 1,731.3 32.2%
Total 8,303 100.0% 5,371.0 100.0%
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NCR68%
Outside NCR32%
Deposit Amount: P5,371.0 Billion
Banking Industry Structure, by AreaAs of December 31, 2011
NCR34%
Outside NCR66%
No. of Banking Offices: 8,303
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BANKING INDUSTRY STRUCTUREAs of December 31, 2011(Amounts in Billion Php)
No. ofBanking % to Amount of % to
Area Offices Total Deposits Total
NCR 2,831 34.1% 3,639.7 67.8%Luzon 3,273 39.4% 939.4 17.5%Visayas 1,135 13.7% 461.9 8.6%Mindanao 1,064 12.8% 330.0 6.1%
Total 8,303 100.0% 5,371.0 100.0%
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Banking Industry Structure, by IslandAs of December 31, 2011
NCR34%
Luzon39%
Visayas14%
Mindanao13%
No. of Banking Offices: 8,303
NCR68%
Luzon17%
Visayas9%
Mindanao6%
Deposit Amount (P5,371.0 B)
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PHILIPPINE BANKING SYSTEMSELECTED INDUSTRY DATA (AS OF MARCH 2012)
in Billions % in Millions %
Commercial Banks 4,549.63 88.1% 30.30 75.5%Thrift and Rural Banks 615.22 11.9% 9.84 24.5%Total 5,164.85 100.0% 40.14 100.0%
Total Estimated Insured Deposits is P1,565.88 billion.
Amount Account
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KB88%
TB & RB12%
AmountP5,164.85 B
KB76%
TB & RB24%
Accounts40.14 M
Philippine Banking System Total Deposits as of March 2012
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Domestic Deposit Liabilities
Philippine Banking System
as of March 2012
Account % to Total Amount % to Total
(in thousands) (in millions)
P 10,000 & below 28,651 71.4% 37,046 0.7%
P10,000.01 - P 100,000 7,331 18.3% 259,389 5.0%
P100,000.01 -P 1,000,000 3,528 8.8% 1,068,072 20.7%
Over P 1,000,000 627 1.6% 3,800,340 73.6%
Total 40,137 100.0% 5,164,848 100.0%
DEPOSIT SIZE
Grand Total
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P10K & below71%
P10K to P100K18%
P100K to P1M9%
over P1M 2%
Accounts40.14 M
P10K & below
1%
P10K to P100K
5% P100K to P1M21%
over P1M74%
AmountP5,164.85 B
Philippine Banking System Total Deposits, by Size of Accounts
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Take on the Presentation
Global & Technological Developments are shaping the Industry and Regulation.
Overhead and economies of scales and process management are very important.
Information is very important.
PDIC at your service.