Sotto files bill to strengthen PDIC, enhance bank liquidation

Senate President Vicente “Tito” Sotto III has filed a bill that aims to strengthen the Philippine Deposit Insurance Corporation (PDIC) by making the country’s deposit insurance system more effective and responsive. 

“The amendments will empower the PDIC to respond decisively to emerging risks and financial crises, while minimizing disruptions to the financial system,” said Sotto in a statement in filing Senate Bill No. 1667.

The bill seeks to improve the deposit protection through expanded coverage and the implementation of differential insurance, extending deposit insurance to non-bank financial institutions and cooperative products deemed as deposits by the Bangko Sentral ng Pilipinas and the Cooperative Development Authority.

The proposed measure also seeks to expedite release of deposit insurance claims so depositors can immediately access their savings if a bank shuts down. 

“In times of financial crisis, the bill authorizes the temporary grant of full deposit insurance coverage, or Temporary Blanket Coverage, upon determination by the Monetary Board when there is a threat to financial system stability,” the statement read. —Vince Angelo Ferreras/RF, GMA Integrated News