FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
Introduced by SENATOR EDGARDO J. ANGARA 
EXPLANATORY NOTE 
Despite assurances from monetary and banking officials that the 
Philippine banking system is in a better position to absorb shock from the global 
credit crisis and financial turbulence, the Philippine financial market and economy 
is not entirely insulated from the Global Financial Turbulence. 
Past reforms introduced by the Central Bank, which involves increase of 
capital and provision, and the several laws also enacted by Congress that will 
push the prudential supervision of the banks, have buttressed our country's 
position to withstand the crisis. 
These financial reforms, however, must be sustained in order to cushion 
the perceived impacts of the Global Financial Turbulence. 
Our purpose is to allay fears of the investing public and to restore 
confidence in the Philippine banking system and the Philippine economy. This 
can be done by instituting protective or remedial measures to ensure that the 
Philippine financial market is resilient enough to weather the crisis. 
In the Philippines, the Philippine Deposit and Insurance (PDIC) is a vital 
institution that acts as a deposit insurer, statutory receiver and co-regulator of 
banks in order to safeguard the interest of the depositing public and thereby 
contributing to the promotion of financial stability in the market. 
Its capacity, however, is limited by the statutory provisions which cap 
PDIC's insurance coverage. 
Hence, this bill seeks to increase the maximum deposit insurance 
coverage of PDIC which translates to enhanced depositor protection, depositor 
confidence, and a stronger banking system. 
The approval of this bill is earnestly sought 
EDGARDO J. ANGARA 
Senator 


FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT AMENDING FURTHER REPUBLIC ACT NUMBERED THREE 
KNOWN AS THE "CHARTER OF THE PHILIPPINE DEPOSIT INSURANCE 
CORPORATION" AND FOR OTHER PURPOSES 
THOUSAND FIVE HUNDRED NINETY-ONE, AS AMENDED, OTHERWISE 
Be it enacted by the Senate and House of Representatives of fhe 
Philippines in Congress assembled: 
SECTION 1. Section 4 of the same Act is hereby re-numbered as 
Section1 and subsection (9) thereof is further amended to read as follows: 
"9) The term "insured deposit" means the amount due to any 
depositor for deposits in an insured bank net of any obligation of the 
depositor to the insured bank as of the date of closure, but not to exceed 
[two hundred fifty thousand pesos] FIVE HUNDRED THOUSAND PESOS 
[ P 250, OOO.OO] P500,OOO.OO. x x x 
Provided, further, That the aggregate of the interests of each co-owner 
over several joint accounts, whether owned by the same or different 
combinations of individuals juridical persons or entities, shall likewise be 
subject to the maximum insured deposit [Two hundred fifty thousand 
pesos] 
FIVE 
HUNDRED 
THOUSAND 
PESOS 
[P250,000.00] 
P500,OOO.OO." 
SEC. 2. Separability Clause - If any provision or section of this Act or the 
application thereof to any person or circumstances is held invalid, the other 
provisions or sections of this Act, in the application of such provision or section to 
other persons or circumstances, shall not be affected thereby. 
SEC. 3. Repealing Clause - All acts or parts of acts and executive orders 
administrative orders, or parts thereof which are inconsistent with the provisions 
of this Act are hereby repealed. 
SEC. 4. Effectivify Clause - This Act shall take effect fifteen (15) days 
following the completion of its publication in the Official Gazette or in two (2) 
newspapers of general circulation. 
Approved, 
EDGAIRDO J. ANGARA 
Chairman 
Committee on Banks, Financial 
Institutions and Currencies