Question & AnswerQ&A (Republic Act No. 3591)
The PDIC is a corporation established by law to insure the deposits of banks insured under the Act, ensuring depositor protection.
The Board has three members: the Governor of the Central Bank of the Philippines and two Philippine citizens appointed by the President with the Commission on Appointments’ consent.
The maximum insured deposit amount is P10,000 per depositor.
An insured bank is one whose deposits are insured by the PDIC under the Act. A non-insured bank is one whose deposits are not insured by the PDIC.
Members cannot be officers or directors of any insured bank. They cannot hold any office, position, or employment in any insured bank during their tenure and for two years after, except if they served a full term.
They can issue rules and regulations, direct management and operations, appoint officers and employees, authorize expenditures, and carry out all powers granted by the Act.
A bank failing to file statements or pay assessments may be compelled by the PDIC to comply through injunction and may pay penalties up to P100 per day for each violation.
The Board of Directors sets the assessment rate, which shall not exceed one-twelfth of one percent per annum on the liabilities for deposits.
The bank must notify the PDIC and the Development Bank of the Philippines at least 90 days in advance, and its insured status terminates on the date fixed by the PDIC after due process. Deposits remain insured for two years after termination.
No, without prior written consent from the PDIC, no insured bank may merge with, convert into, or assume liabilities of a non-insured bank or transfer assets to such bank.
The PDIC pays insured deposits either by cash or by making transferred deposits in another insured bank, may require proof of claims, and is subrogated to depositors' rights to recover assets.
They can be fined up to P1,000, imprisoned up to one year, or both, for participating in dividends or interest payments during such default.
Board members and employees are prohibited from disclosing any bank condition or business information. Violations result in liability for any loss or injury to the PDIC.
A fund of P5,000,000 appropriated from the General Fund, used by the PDIC for its insurance purposes.
The PDIC may make loans, purchase assets, or make deposits to an insured bank in danger of closing to maintain adequate banking service in the community.