Senate President Vicente “Tito” Sotto III has filed Senate Bill No. 1667 seeking to amend Republic Act No. 3591, the charter of the Philippine Deposit Insurance Corporation (PDIC), to reinforce its independence, authority, and financial capacity while enhancing the country’s framework for bank liquidation.
Sotto emphasized the urgency of reforms to make the deposit insurance system more effective and responsive to modern challenges.
“The amendments will empower the PDIC to respond decisively to emerging risks and financial crises, while minimizing disruptions to the financial system,” Sotto said.
The proposed measure aims to expand deposit protection through differential insurance and extend coverage to Non-Bank Financial Institutions (NBFIs) and cooperative products recognized as deposits by the Bangko Sentral ng Pilipinas (BSP) and the Cooperative Development Authority (CDA).
It also mandates the prompt release of deposit insurance claims to ensure depositors can quickly access their savings in the event of a bank closure.
Another key provision authorizes the Monetary Board to grant Temporary Blanket Coverage, or full deposit insurance, when financial system stability is at risk.
The bill further introduces an enhanced liquidation process designed to expedite the recovery of claims by creditors of closed banks, strengthening PDIC’s role as a financial safety net institution.
Sotto’s initiative underscores the need to modernize the country’s deposit insurance system to safeguard public trust and maintain stability in the banking sector.