EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Third Regular Session 
)
SENATE 
S. B. No. 2365
(In Substitution of S.B. Nos. 1260 and 2089, and taking into consideration H.
FILED
nDEX
. Prepared by the Committees on Banks, Financial Institutions, and 
Currencies; Government Corporations and Public Enterprises as 
recommended by the Sub-Committee on S.B. Nos. 1260 and 2089 with 
Senators Revilia, Angara, Poe, and Gordon as authors.
AN ACT
AMENDING SECTIONS 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 18, 22, 24, 26, AND 
28 OF REPUBLIC ACT NO. 3591, AS AMENDED, OTHERWISE KNOWN AS THE 
PHILIPPINE DEPOSIT INSURANCE CORPORATION CHARTER, AND FOR 
OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
the Congress assembled:
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SECTION 1. Section 1 of Republic Act No. 3591, as amended, or "An Act
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Establishing the Philippine Deposit Insurance Corporation, Defining its Powers and
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Duties and for Other Purposes" is hereby further amended to read as follows:
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"THE CREATION OF THE PHILIPPINE DEPOSIT INSUP^NCE CORPORATION
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"SECTION 1. There is hereby created a Philippine Deposit Insurance
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Corporation hereinafter referred to as the 'Corporation' which shall insure as
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herein provided, the deposits of all banks which are entitled to the benefits of
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insurance under this Act, and which shail have the powers hereinafter granted.


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The Corporation shall, as a basic policy, promote and safeguard the interests 
of the depositing public by providing insurance coverage on all insured deposits 
and helping maintain a sound and stable banking system.
THE CORPORATION SHALL BE ATTACHED TO THE BANGKO SENTRAL 
NG PILIPINAS FOR POLICY AND PROGRAM COORDINATION."
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SEC. 2. Section 3 of the same Act is hereby further amended to read as follows:
"BOARD OF DIRECTORS; COMPOSITION AND AUTHORITY 
"SEC. 3. (a) The powers and functions of the Corporation shall be vested in 
and exercised by a Board of Directors which shall be composed of seven (7) 
members as follows:
(1) The GOVERNOR OF THE BANGKO SENTRAL NG PILIPINAS
[Scerctary—ef—Financo] who shall be the ex officio [Chairman] 
CHAIRPERSON of the Board without compensation;
(2) The [Governor of the Bangko-Sentral ng--Pilipinas] SECRETARY OF 
FINANCE who shall be ex officio VICE CHAIRPERSON AND member of 
the Board without compensation;
(3) The President of the Corporation, who shall be appointed by the President 
of the Philippines from a shortlist prepared by the Governance Commission 
for Government-Owned or -Controiled Corporations pursuant to Republic 
Act No. 10149, OR THE "GOCC GOVERNANCE ACT OF 2011" to serve 
on a full-time basis for a term of six (6) years. [The President of-tho 
Corporation shall also-serve as-VicG-Ghairman-of-the-Bear-d];


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(4) Four (4) members from the private sector to be appointed by the President
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of the Philippines from a shortlist prepared by the Governance Commission
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for Government -Owned or -Controlled Corporations pursuant to Republic
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Act No. 10149. The appointive directors shall serve for a term of six (6)
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years unless sooner removed for cause and shall be subject to only one (1)
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reappointment; Provided, That of those first appointed, the first two (2)
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appointees shall serve for a period of three (3) years; Provided, however,
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that the appointive director shall continue to hold office until the successor
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is appointed. An appointive director may be nominated by the Governance
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Commission for Government -Owned or -Controlled Corporations for
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reappointment by the President only if [ene] THE APPOINTIVE
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DIRECTOR obtains a performance score of above average or its
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equivalent or higher in the immediately preced ng year of tenure as
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appointive director based on the performance criteria for appointive
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directors of the Corporation.
16x X X
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The Secretary of Finance and the Governor of the Bangko Sentral ng Pilipinas
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may each designate an alternate, who shall be an official with a rank not lower
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than assistant secretary OF THE DEPARTMENT OF FINANCE or [its
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equivalent] DEPUTY GOVERNOR OF THE BANGKO SENTRAL NG
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PILIPINAS with written authority from the Secretary of Finance or the
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Governor of the Bangko Sentral ng Pilipinas to attenc such meetings and to
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vote on behalf of their respective principais. Whenever the [Chairman]
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CHAIRPERSON of the Board is unable to attend a meeting of the Board, or


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in the event of a vacancy in the office of the [Secretary of--Finanee]
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GOVERNOR OF THE BANGKO SENTRAL NG PILIPINAS, [and in the
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absence of the Vice Chairman-the members of the Board shall-designate from
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among themselves-whe] HIS OR HER DESIGNATED ALTERNATE shall [aet
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as Chairman] PRESIDE. IN THE ABSENCE OF THE CHAIRPERSON AND
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HIS OR HER DESIGNATED ALTERNATE, THE SECRETARY OF FINANCE
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OR HIS OR HER REPRESENTATIVE SHALL PRESIDE.
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(b) The Board of Directors shail have the authority:
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(1) To approve and issue rules and regulations for banks, and the depositing
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public, as it considers necessary for the effective discharge of its
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responsibilities UNDER THIS ACT INCLUDING THE
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ESTABLISHMENT OF SEPARATE INSURANCE FUNDS, AND
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INSURANCE ARRANGEMENTS OR STRUCTURES OR TAKAFUL,
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TAKING INTO CONSIDERATION THE PECULIAR
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CHARACTERISTICS OF ISLAMIC BANKING. THIS AUTHORITY
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INCLUDES, INCREASING OF THE INSURANCE COVERAGE,
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ELIGIBILITY OF THE INSTITUTIONS, ASSESSMENT PREMIUM
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RATE, AND OTHER IMPLEMENTATION RULES AND
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REGULATIONS;
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FOR PURPOSES OF THIS ACT, TAKAFUL SHALL BE DEFINED AS A
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MUTUAL GUARANTEE IN RETURN FOR THE COMMITMENT TO
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DONATE AN AMOUNT IN THE FORM OF A SPECIFIED
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CONTRIBUTION TO THE COVERED ENTITIES' RISK FUND,


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WHEREBY A GROUP OF COVERED ENTITIES AGREE AMONG
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THEMSELVES TO SUPPORT ONE ANOTHER JOINTLY FOR THE
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LOSSES ARISING FROM SPECIFIED RISKS.
4x X X
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[(4)-To-approvc-a-compcn5Qtion-strueturc as an integral component-of-the
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Corporation's-human rosourec development program based on job-€valuation
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studics-and wage-surveys, and revise the same as-it-may deem necessary:'
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Provided/■That-all-positions- in'thG-Corporation shall—be governed by.a
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compensation—package/—position—classific-at-ien—system—and—qualification
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standards approved by the Board based on a comprehensive job-onalysis-and
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audit of actual duties-and-responsibilities. The compensation structure-shall-be
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comparable to that-of other-financiaHnst-itutions based on prevailing-market
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standardsrand shall provide for-yearly merit reviews-or increases based-on
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productivity. The Corporation shall therefore bc -exempt from-existing-laws;
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rules and-fcgulatiens-on-compcnsation package,- position classification-and
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qualific-atien standards. It shall-howcver-cndcavor to make its system-eenferm-
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as closGly-as-possiblc-with-the-princ-ipIcs under-Republic-Act No. 6758, as
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amended,-]
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[(5)] (4) To appoint, [establish-the rank, fix the romunoration,-benefitS7
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including-health-e-are-services-through a Health Maintenance Organization
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(HMO) and-medical-benefits other than those provided-f-or under Republie-Aet
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No. 7875,- as.amendedj] and remove any officer or employee of the
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Corporation, for cause, subject to pertinent civil service laws: Provided, That
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the Board of Directors may delegate this authority to the President subject to


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specific guidelines: Provided, further, That in no case shall there be any 
diminution of existing salaries, benefits and other emoluments;
[(€)] (5) To approve policy on local and foreign travel, and the corresponding 
expenses, allowances and per diems, of officers, employees, agents of the 
Corporation, which shall be comparable with the expenses, allowances and per 
diems of personnel of other financial institutions based on prevailing market 
standards, notwithstanding the provisions of Presidential Decree No. 1177, 
Executive Order No. 292, Executive Order No. 248, as amended. Executive 
Order No. 298, and similar laws;
[P)] (6) To adopt an annual budget for, and authorize such expenditures by 
the Corporation, as are in the interest of the effective administration and 
operation of the Corporation;
[(8)] (7) To approve the target level of the Deposit Insurance Fund (DIF) and 
the methodology for determining reserves for insurance and financial 
assistance losses;
[{9}] (8) To review the organizational set-up of the Corporation and adopt a 
new or revised organizational structure as it may deem necessary for the 
Corporation to undertake its mandate and functions;
[(40)] (9) To design, adopt !and revise, as it may deem necessary, an early 
separation plan for employees of the Corporation to ensure availability of a 
human resource pool qualified and capable of implementing the Corporation's 
authorities under this Charter in a manner responsive and attuned to market 
developments, and to provide incentives for all those who shall be separated 
from the service. Notwithstanding any law to the contrary, these incentives


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shall be in addition to all gratuities and benefits the employee is entitled to 
under existing laws; and
[(44)] (10) To promote and sponsor the local or foreign training or study of 
personnel in the fields of banking, finance, management, information 
technology and law. Towards this end, the Corporation is hereby authorized to 
defray the costs of such training or study. The Board shall prescribe rules and 
regulations to govern the training or study programs of the Corporation."
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SEC. 3. Section 4 of the same Act is hereby further amended to read as follows:
9 
"PRESIDENT OF THE CORPORATION:
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COMPENSATION, POWERS, AND DUTIES
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SEC. 4. The President of the Corporation shall be its Chief Executive Officer
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[and the Vice Chairman of its Board-of-Directors-and his-or-hcr] WHOSE salary
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shall be [fixed by thc-Presidcnt-of-thG-Philippines upon the recommendation
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©f] BASED ON THE COMPENSATION AND POSITION CLASSIFICATION
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SYSTEM DEVELOPED BY the Governance Commission for Government-
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Owned or -Controlled Corporations [(GCG).at a sum-commensur-ate-to-the
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importance and responsibility-attached-to-the position.-] AND AS APPROVED
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BY THE PRESIDENT OF THE PHILIPPINES. The sum total of the salary,
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allowances, benefits and other emoluments of the President of the Corporation
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shall be higher than the compensation package of the next highest ranking
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executive of the Corporation.
22x X X


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The President shall be assisted by a Vice President and other officials whose 
appointment and removal for cause shall be approved [and whose salary-shalf 
bo-fixed] by the Board of Directors upon recommendation of the President of 
the Corporation. THE SALARY OF THE VICE PRESIDENT AND OTHER 
OFFICIALS SHALL BE BASED ON THE COMPENSATION AND POSITION 
CLASSIFICATION SYSTEM ESTABLISHED BY THE GOVERNANCE 
COMMISSION FOR GOVERNMENT-OWNED OR -CONTROLLED 
CORPORATIONS AND AS APPROVED BY THE PRESIDENT OF THE 
PHILIPPINES."
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SEC. 4. Section 5 of the same Act is hereby further amended to read as follows:
"DEFINITION OF TERMS 
"SEC. 5. As used in this Act. - 
(a) X X X 
(g) X X X
CERTAIN PRODUCTS OR ARRANGEMENTS OF ISLAMIC BANKS SHALL 
BE DEEMED AS DEPOSIT BY THE BANGKO SENTRAL NG PILIPINAS 
FOR PURPOSES OF THIS ACT.
The Corporation shall not pay deposit insur^ce for the following 
accounts or transactions:
(1) X X X
(3) Deposit accounts or transactions constituting [, and/or-cmonating 
froiTtj] unsafe and unsound banking [proctico/s], as determined by the 
Corporation, in consultation with the Bangko Sentral ng Pilipinas, after


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due notice and hearing, and publication of a directive to cease and desist 
issued by the [Gorporatien] BANGKO SENTRAL NG PILIPINAS 
against such deposit accounts, transactions or [practices] UNSAFE 
AND UNSOUND BANKING; and
(i) The term insured bank means any bank the deposit of which are insured 
in accordance with the provisions of this Act.
(j) The term insured deposit means the amount due to any bonafide depositor 
for legitimate deposits in an insured bank as of the date of closure but not to 
exceed Five hundred thousand pesos (P500,000.00). Such amount shall be 
determined according to such regulations as the Board of Directors may 
prescribe. In determining such amount due to any depositor, there shall be 
added together all deposits in the bank maintained n the same right and 
capacity for his or her benefit either in his or her own name or in the name of 
others. A joint account regardless of whether the conjunction 'and1, 'or', 'and/or' 
is used, shall be insured separately from any individually-owned deposit 
account: Provided, That (1) if the account is held jointly by two or more natural 
persons, or by two or more juridical persons or entities, the maximum insured 
deposit shall be divided into as many equal shares as there are individuals, 
juridical persons or entities, unless a different sharing is stipulated in the 
document of deposit, and (2) if the account is held by a juridical person or 
entity, jointly with one or more natural persons, the maximum insured deposit 
shall be presumed to belong entirely to such juridical person or entity:


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Provided, further, That the aggregate of the interest of each co-owner over 
several joint accounts, whether owned by the same or different combinations 
of individuals, juridical persons or entities, shall likev/ise be subject to the 
maximum insured deposit [of Five-hundred- thousand-pesos (P500,000:Q0-)]: 
Provided, furthermore. That the provisions of any law to the contrary 
notwithstanding, no owner/holder of any passbook, certificate of deposit or 
other evidence of deposit shall be recognized as a depositor entitled to the 
rights provided in this Act unless the passbook, certificate of deposit or other 
evidence of deposit is determined by the Corporation to be an authentic 
document or record of the issuing bank.
[Provided,-finally,-ThQt-i] In case [ef^ a condition OCCURS that threatens the 
monetary and financial stability of the banking system that may have systemic 
consequences, as defined in Section 22 hereof, AND as determined by the 
Monetary Board, the maximum deposit insurance cover may be adjusted in such 
amount, for such a period, and/or for such deposit products, as may be 
determined by a unanimous vote of the Board of Directors in a meeting called 
for the purpose and chaired by the [Secretary of Finance] GOVERNOR OF THE 
BANGKO SENTRAL NG PILPINAS OR THE DESIGNATED ALTERNATE, 
subject to the approval of the President of the Philippines,
THE BOARD OF DIRECTORS MAY INCREASE THE AMOUNT OF THE 
MAXIMUM DEPOSIT INSURANCE COVERAGE TO AN AMOUNT 
INDEXED TO INFLATION OR IN CONSIDERATION OF OTHER 
ECONOMIC INDICATORS AS MAY BE DEEMED APPROPRIATE BY THE 
BOARD. THE BOARD OF DIRECTORS SHALL REVIEW THE AMOUNT OF
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THE MAXIMUM DEPOSIT INSURANCE COVERAGE EVERY THREE (3)
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YEARS AND INCREASE THE MAXIMUM DEPOSIT INSURANCE
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COVERAGE AS MAY BE WARRANTED. IN THE EXERCISE OF THIS
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AUTHORITY, THE BOARD MAY CONSIDER ECONOMIC INDICATORS
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OTHER THAN INFLATION. FOR THIS PURPOSE, THE BOARD MAY HIRE
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THE SERVICES OF INDEPENDENT ACTUARIAL CONSULTANTS AND
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OTHER EXPERTS TO DETERMINE THE FEASIBILITY AND
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ADVISABILITY OF INCREASING THE MAXIMUM DEPOSIT INSURANCE
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COVERAGE. 
lOx X X
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(o) The term purchase of assets and assumption of liabilities refers to a
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transaction where an insured bank purchases any or all assets and assumes
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any or all liabilities of another bank under [resolution -or] iiquidation, as
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provided in this Act.
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[(s)-The-tcrm'resolution refers to the actions-undcrtoiccn by the Corporation
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under Section 11 of this-Acti
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(1) Protect depositors, creditors and the DIF;-
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(-2)-Safcguard-the-Gontinuity-of essential-banking services or-maintaift
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finaneial-5tability;-and
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(3) Prevent deterioration or dissipation of'bank assets:]
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[(t}] (s) The term risk-based assessment system pertains to a method for
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calculating an insured bank's assessment on the probability that the DIF will
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incur a loss with respect to the bank, and the likely arrount of any such loss, 
based on its risk rating that takes into consideration the following:
(1) Quality and concentration of assets;
(2) Categories and concentration of liabilities, both insured and uninsured, 
contingent and noncontingent;
(3) Capital position;
(4) Liquidity position;
(5) Management and governance; and
(6) Other factors relevant to assessing such probability, as may be 
determined by the Corporation.
[(e)] (t) The term statement of affairs refers to a report of financial condition 
of the closed bank at a given date, showing the: (1) estimated realizable value 
of assets; (2) classification of credits; and (3) estimated liabilities to be settled.
(u) The term surplus dividends refers to the remaining assets of the 
closed bank after satisfaction in full of all the liquidation costs, fees and 
expenses, and valid claims. The surplus dividends shall be computed at the 
legal rate of interest from the date of takeover to cut-off date of the distribution 
plan, and shall be paid, in cash or in kind, to creditors of the closed bank in 
accordance with the Rules on Concurrence and Preference of Credits under the 
Civil Code or other laws.
mi (v) The term takeover refers to the act of physically taking possession 
and control of the premises, assets and affairs of a closed bank for the purpose 
of liquidating the bank.
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[^] (w) The term transfer deposit means, a deposit in an insured bank made
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available to a depositor by the Corporation as payment of insured deposit of
3 
such depositor in a closed bank and assumed by another insured bank.
4 
[(y)] (x) The term trust funds means funds held by an insured bank in a
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fiduciary capacity and includes without being limited to, funds held as trustee,
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executor, administrator, guardian or agent.
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(y) THE TERM UNSAFE AND UNSOUND BANKING MAY REFER TO THE
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CONDUCT OF BUSINESS IN AN UNLAWFUL, UNSAFE OR UNSOUND
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MANNER AS MAY BE DEFINED BY THE BANGKO SENTRAL NG
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PILIPINAS UNDER REPUBLIC ACT NO. 7653, AS AMENDED BY
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REPUBLIC ACT NO. 11211, OR "THE NEW CENTRAL BANK ACT", AND
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REPUBLIC ACT NO. 8791 OR "THE GENERAL BANKING LAW".
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NOTWITHSTANDING THE FOREGOING, THE CORPORATION SHALL
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CONTINUE TO HAVE THE AUTHORITY TO DETERMINE UNSAFE OR
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UNSOUND BANKING IN THE PERFORMANCE OF ITS MANDATES, IN
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ACCORDANCE WITH THE DEFINITION OF THE BANGKO SENTRAL NG
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PILIPINAS AS PROVIDED ABOVE.
18x X X
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SEC. 5. Section 6 of the same Act is hereby further amended to read as follows:
"DEPOSIT INSURANCE COVERAGE
SEC. 6. The deposit liabilities of any bank which is engaged in the business of 
receiving deposits as herein defined on the effective date of this Act, or which 
thereafter may engage in the business of receiving deposits, shall be insured
' 13


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with the Corporation. THE CORPORATION MAY ESTABLISH SEPARATE 
INSURANCE FUNDS AND INSURANCE ARRANGEMENTS OR 
STRUCTURES OR TAKAFUL THAT TAKE INTO CONSIDERATION THE 
PECULIAR CHARACTERISTICS OF ISLAMIC BANKING.
Whenever a bank is determined by the Bangko Sentral ng Pilipinas to be capital 
deficient, the Corporation may conduct an insurance risk evaluation on the 
bank to enable it to assess the risks to the DIF. Such evaluation may include 
the determination of: (i) the fair market value of the assets and liabilities of a 
bank; or (ii) the risk classification of a bank [■; or (iii) possible resolution modes 
undcr-Seetion-l-l-of-this-ActT-subjcct to such terms and conditions os the PDIG
Board may prcGcriber].
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SEC. 6. Section 7 of the same Act is hereby further amended to read as follows:
"ASSESSMENT OF MEMBER BANKS
SEC. 7. (a) The assessment rate shall be determined by the Board of Directors: 
Provided, That the assessment rate shall not exceed one-fifth (1/5) of one per 
centum (1%) per annum. The semi-annual assessment for each insured bank 
shall be in the amount of the product of one-half (1/2) the assessment rate 
multiplied by the assessment base but in no case shall it be less than Five 
thousand pesos (P5,000.00). The assessment base shall be the amount of the 
liability of the bank for deposits as defined under subsection (g) of Section 5 
without any deduction for indebtedness of depositors.
In addition, the Board of Directors may establish a risk-based assessment 
system and impose a risk-based assessment rate which shall not exceed two-
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fifth (2/5) of one per centum (1%) per annum multiplied by the assessment 
base.
IN CASE THERE WILL BE AN INCREASE OF MAXIMUM INSURED 
DEPOSIT, THE PDIC BOARD SHALL HAVE THE AUTHORITY TO ADJUST 
THE ASSESSMENT RATE FOR BANKS TAKING INTO CONSIDERATION 
THE CURRENT ECONOMIC CONDITIONS, AND THE ADEQUACY AND 
SUSTAINABILITY OF THE DEPOSIT INSURANCE FUND, 
xxx"
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SEC. 7. Section 8 of the same Act is hereby further amended to read as follows:
"SANCTIONS AGAINST UNSAFE AND UNSOUND BANKING [PRAGHGES] 
SEC. 8. (a) Whenever upon examination by the Corporation into the condition 
of any insured bank, it shall be disclosed that an insured bank or its directors 
or agents have committed, are committing or about to commit unsafe or 
unsound [practices] BANKING [in conducting the business-of thc-bank], or 
have violated, are violating or about to violate any provisions of any law or 
regulation to which the insured bank is subject. The Board of Directors shall 
submit the report of the examination to the Mone:ary Board [to secure 
corrective action-thereon.-If-no such-corrective-action is taken by the Monetary 
Board within forty-five (^IS) days-from the submission of the report-, the Board
of Directors shall, motu proprio, institute-corrective action which ■it-deems
necessary.—The-Board of-Directors may-thereafter-issLic a cease and desist
order, and require-the bank or-its directors-or agentS'concerned to-correet-the
practices or violations within forty-five (/l5)-day5. However, if the-practice-eF
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violation is-likGly-to-couse-iRSoIvcncy-er substantial dissipation of asscts-OF
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earnings of-tho-bank-, or is likely to GcriouGly vvoakcn-tho condition of-the-bank
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or-otherwiso-seriously ■ projudico -tho- interests of- its-depositors and-the
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Corporation, thc-pcriod to take corrective action-shall not-be-morc than-fifteen
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(15) days. The order may also include the imposition-ef-fines provided-in
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Section 26(g)-horoof-r-Tho Board-of Directors shall duly-inform the Monetary
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Board of-the Bangko-Sentral ng Pilipinas of action it-has taken under-this
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subsection with respect to such practices or violat-iensr]
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[(b) The actions-ond procoodings-provided in the preceding subsoctions-may
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be undertaken by-the Corporation if, in its opinion,-an-insured bank or-its
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directors-or agents have violated,-are-violating or about to violato-any provision
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of this Act-or any order, rulo or-instruction-issued by the Corporation or-any
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written-condition—imposed—by the Corporation in ■ connection-with—any
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transaction with or grant by the CorporatioFh]
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[(€)] (b) The Corporation may terminate the insured status of any bank that
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fails or refuses to comply, within thirty (30) days from notice, with any cease-
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and-desist order issued by the [Corporation] BANGKO SENTRAL NG
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PILIPINAS, [or with any corrective-action imposed by the Monetary-Boardj
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under this-seetien] pertaining to a deposit-related unsafe and/or unsound
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banking [practice].
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XXX"
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SEC. 8. Section 9 of the same Act is hereby further amended to read as follows:
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"POWERS AS CORPORATE BODY
2 
"SEC, 9. The Corporation as a corporate body shall have the powers:
3xxx
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Fifth — To appoint by its Board of Directors such officers and employees as are
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not otherwise provided for in this Act, to define their duties, [fix-their
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compcnsationj] require bonds of them and fix penalty thereof and to dismiss
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such officers and employees for cause;
8xxx
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Eighth — [To conduct examination of banks with prior approval of the Monetary
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Board: Provided, That-no examination can be conducted-within twGlvc-fl-2)
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months-from the last examination -date: Provided,--hewever. That—the
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Corporation may,-in coordination with the Bangko Scntral, conduct a special
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examination as thc-Board of Directors, by an affirmative vote of a-majority of
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all of itG-members, if there is a-threatened-or-impending closure of a banle]
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TO EXAMINE THE RECORDS AND BOOKS OF ACCOUNTS AND
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REQUIRE INFORMATION AND REPORTS FROM DEPOSITORY
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INSTITUTIONS IN CASE THERE IS A FINDING OF FRAUD OR UNSAFE
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OR UNSOUND BANKING RELATED TO DEPOSIT-TAKING, Provided,
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[further;] That, notwithstanding the provisions of Republic Act No. 1405, as
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amended. Republic Act No. 6426, as amended. Republic Act No. 8791, and
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other laws, the Corporation and/or the Bangko Sentral, may inquire into or
22 
examine deposit accounts and all information related thereto in case there is a
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finding of unsafe or unsound banking practice: Provided, [finally] FURTHER,
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That to avoid overlapping of efforts, the examination shall maximize the
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efficient use of the relevant reports, information, and findings of the Bangko 
Sentral, which it shall make available to the Corporation.
[Fourteenth----- To-deter-mine the appropriate -resolut-ien method-and-te
implement-the-same for a bank subject of resolutionj-and]
[Fifteenth] FOURTEENTH — To determine the appropriate mode of 
liquidation of a closed bank and to implement the same,"
SEC. 9. Section 10 of the same Act is hereby further amended to read as
follows:
"POWERS, [AND] RESPONSIBILITY, AND PROHIBITIONS 
"SEC. 10. XXX
(b) WHENEVER THE BANGKO SENTRAL NG PILIPINAS DEEMS IT 
APPROPRIATE AND NECESSARY FOR PDIC TO 30IN THE CONDUCT OF 
THE EXAMINATION OF A BANK, [T] The Board of Directors shall appoint 
examiners who shall have power, on behalf of the Corporation to examine any 
insured bank. Each examiner shall have the power to make a thorough 
examination of all the affairs of the bank and in doing so, he shall have the 
power to administer oaths, to examine and take and preserve the testimony of 
any the officers and agents thereof, and to compel the presentation of books, 
documents, papers or records necessary in his judgment to ascertain the facts 
relative to the condition of the bank: and shall make a full and detailed report 
of the condition of the bank to the Corporation. The Board of Directors in like 
manner shall appoint claim agents who shall have the power to investigate and
18


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examine all claims for insured deposits and transferred deposits. Each claim
2 
agent shall have the power to administer oaths and examine under oath and
3 
take and preserve testimony of any person relating to such claim.
4xxx
5 
(d) The [Corporation] BANGKO SENTRAL NG PILIPINAS shall have access
6 
to [rcports-of cxaminatien] BANK EXAMINATION REPORTS made by THE
7 
CORPORATION, [and reports of condition made to the Bangko Sentr-al-ng
8 
Pilipinas-or its-appropriatc supervising-departments, anc-thc Bangko Scntral-n§
9 
Pilipinas^hall also have acccss-to rcports-ef examination made-by, and reports
10 
of condition made to the Corporation: Provided, That the provisions of any-law
11 
to the contrary notwithstondingT-thG Corporation shall likewise have access to
12 
rGports,-ftndings and any other information derived from any special or general
13 
examination of inquiry-conducted- by the Bangko SentraHn respect to bank
14 
fraud or-serious-irregularity-in an -insured-bank-r] AND TO SUCH OTHER
15 
REPORTS OR INFORMATION AS MAY BE AGREED UPON BY THE
16 
CORPORATION AND THE BANGKO SENTRAL NG PILIPINAS. THE
17 
BANGKO SENTRAL NG PILIPINAS SHALL SHARE TO THE
18 
CORPORATION ITS REPORTS OF EXAMINATION ON BANKS, AND
19 
SUCH OTHER REPORTS OR INFORMATION AS MAY BE AGREED UPON
20 
BY THEM. Provided, [t] That, [the Corporation shall use such reporto-and
21 
findingsHJRder similar-terms and- conditions prescribed-by applicable laws-OR
22 
the Bangko Sentral] THE USE OF SUCH REPORTS OR INFORMATION ARE
23 
IN ACCORDANCE WITH THE TERMS AND CONDITIONS AGREED UPON
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BY THE CORPORATION AND THE BANGKO SENTRAL NG PILIPINAS 
AND PRESCRIBED BY APPLICABLE LAWS AND REGULATIONS.
(e) X X x"
SEC. 10. Section 11 of the same Act is hereby amended to read as follows: 
"[BANK RESOLUTION] AUTHORITY TO EXAMINE DEPOSIT RECORDS
SEC. 11. [(Q) ThG-Corporatien, in coordination with tho-Bangko Scntrai ng 
Pilipinas, may-commcncc-thc resolution of a bank-under this section uponi]
[(1) Failure of prompt-corrective action-as declared by the-Monetory-Boardj 
©f]
[(2) Request-by-o bankto be placed under resolutionv]
[The Corporation shall inform-the bank of Its eigibility for entr^^to
resolutionv]
[(b) The Bangko Sentral ng Pilipina&sholl inform-the Corporation of the initiation
of prompt corrective action on any-bank and shall be-authorized to share-with- 
the Corporation all information, agreements or-documents, including any-erder
of the Monetary-Board, in relation to the prompt corrective action: ■4:he
Corporation shall have the authority to inquire and monitor the-status of-baoks
under-prompt corrective action7]
[(e)] When there is a failure of prompt corrective action as declared by the 
Monetary Board due to capital deficiency, the Corporation [, its duly authorized 
officers-or employees,-] AND THE BANGKO SENTRAL NG PILIPINAS may 
examine, inquire or look into the deposit records of a bank: Provided, That such 
authority may not be exercised when the failure of prompt corrective action is
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due to grounds other than capital deficiency. For this purpose, banks, their 
officers and employees are hereby mandated to disclose and report to the 
Corporation AND THE BANGKO SENTRAL NG PILIPINAS or [its] THEIR 
duly authorized officers and employees, THE REQUIRED deposit account 
information [in-said-bank].
The Corporation, its duly authorized officers or employees are prohibited from 
disclosing information obtained under this section to any person, government 
official, bureau or office. Any act done pursuant to this section shall not be 
deemed as a violation of Republic Act No. 1405, as amended. Republic Act No. 
6426, as amended. Republic Act No. 8791, and other similar laws protecting or 
safeguarding the secrecy or confidentiality of bank deposits. [: Provided, That 
a] Any unauthorized disclosure of the information under this section shall be 
subject to the same penalty under the [foregoing] laws protecting the secrecy 
or confidentiality of bank deposits.
[(d) Thc-stoc-l4:)0ldcr5,-dircctors,-officcr5 or cmployees-of the bank shall have
the following-obligatiensr]
[(1) Ensurc-bank-eempliancc with the terms-and-oanditions prcscribed-by
thc-Gorporatien for-the-resolutiorvof-tho-bank-j]
[(2) Cause-the engagement, with the consent of the Corporation, of an
independent-appraisGr-or auditor for the-purpose.of determining-the
valuation of the -bank—consistent with generally accepted valuat-ioe
standards^]
[(3) Ensure prudent management and administration of the-bank's-assets;
liabilities and-record5,-and]
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[(4) -GoopGratG with thc-Gorporatien in the conduct or cxcrciso-of any or
all of-its-QutheritiGS-undGr this Act-Dnd honor-in good-f-aith its commitmeRt
or undGrtaking-with-thG-Gorporation on thG-resolution-of thG banle] 
[(G)-Within a pGriod of onG hundrGd-Gighty (180)-days from-a bank's Gntry4nte
rGsolutionr thG Corporation, through'thG-affirmativG-votG of-Dt-lGast fivG (5-)
mombors-of tho PDIC Boardrshall dotormino whothor the bank-may bo roGolvod
through-thG-porehasG-of-alf-its ossotG and OGSumption-of all its liabilitiG5/-or
morgor-or consolidation with, or its-acquisition, by a qualifiod invost-er-]
[For this purpose,-the Corporation-mayf
(1) Determine o resolution package for the bankj
(2) Identify and, with the -approval of the Monetary- Board, pro-qualify
possiblG-acquirors-or invostorst
(3) Authorize pro qualifiGd-acquirors-er investors-to conduct-duo diligonee
on the banlcT-for purposes- of dotormining tho-valuation of a bank-threH§h
□n objective and thorough-review and appraisal-of its asseto-and liabilitiGS7
and 'assessment-of-risks or events that may affect its-valuation;-and
(4) Conduct-a-bidding-to-determine-t-he acquirer of the-banle]
[(f) In-determining the-appropriate-resolution—method—for a bank, the
Corporation shall consider the:-]
[(1) Fair market-value of the assets-of-the bank, its franchisGr-as-well-as
the amount-of-4ts liabilities,-
(2) Availability-of a qualified investor!
(3) Least cost-to the DIF; and
(4) Interest of the depositing-peblier]
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[(g) The Corporation may appoint or-hirc persons- or-ontitics of recognized
compotcncc in banking, finance, ossot management or-gcmGdial-managcmGnt7
as its-Dgonts-to-perform-such powers and-functions of the Corporation-in-the
rcsolutieFhof q bank, or OGsist in-the performance thcrcofT]
[(h) The PDIG Board-shall prcGcribc the guidelines or criteria for □ bank to be
placed under rcsolutionv]
[(i)-Upen-a-determination by the Corporation that the bank-may not be
resolvedy the-Monetary-Board may act in-accordance with-Section 30-of
Republie-Act No. 7653 or the-New Central Bank AetT]
[(j) Bank resolution involving the-purchase of all aosets and assumption of all
liabilities of a bank -Ghall be exempt from-the provisions of Act No. 3052,
otherwise known-as 'The-Bbilk Sales-Low1?]
[6^] The provisions of this section [are without prejudice to any action-that]
NOTWITHSTANDING, the Monetary Board may take OTHER ACTIONS 
under existing laws THAT IT MAY DEEM NECESSARY.
16
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SEC. 11. Section 13 of the same Act is hereby amended to read as follows: 
"AUTHORITIES OF A RECEIVER AND EFFECTS OF 
PLACEMENT OF A BANK UNDER LIQUIDATION 
"SEC. 13. (a) The receiver is authorized to adopt and implement, without need 
of consent of the stockholders, board of directors, creditors or depositors of 
the closed bank, any or a combination of the following modes of liquidation:
1. Conventional liquidation; and
2. Purchase of assets and/or assumption of liabilities.
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(b) In addition to the powers of a receiver provided under existing laws, the 
Corporation, as receiver of a closed bank, is empowered to:
1. Represent and act for and on behalf of the closed bank;
2. Gather and take charge of all the assets, records and affairs of the closed 
bank, and administer the same for the benefit of its creditors;
3. Convert the assets of the closed bank to cash or other forms of liquid 
assets, as far as practicable[j], PROVIDED, THAT THE 
CORPORATION IS AUTHORIZED TO SELL ASSETS OF CLOSED 
BANKS, WHICH ARE HELD BY THE CORPORATION AS 
RECEIVER, TO A FINANCIAL INSTITUTIONS STRATEGIC 
TRANSFER CORPORATION (FISTC), IN ACCORDANCE WITH 
THE PROVISIONS OF REPUBLIC ACT NO. 11523 OR THE 
"FINANCIAL INSTITUTIONS STRATEGIC TRANSFER (FIST) 
ACT". FOR THIS PURPOSE, THE BOARD OF DIRECTORS SHALL 
BE THE APPROPRIATE REGULATORY AUTHORITY AND SHALL 
PROMULGATE THE NECESSARY IMPLEMENTING RULES AND 
REGULATIONS.
19
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SEC. 12. Section 18 of the same Act is hereby amended to read as follows:
"DIVIDEND DECLARATION
"SEC. 18. Consistent with the policy of the State to generate, preserve, 
maintain faith and confidence in the country's banking system, the Corporation 
shall build up and maintain the DIF at the target level set by the PDIC Board
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of Directors. Such target level shall be subject to periodic review and may be 
adjusted as necessary.
The Corporation [is exempt from-Rcpublic-Act No. 7656; instcadr-the 
Corporation] shall DECLARE AND remit CASH dividends to the [e] National 
[§] Government [only if the targct-DIF level for-the applicable year has-been- 
rcachcdr] IN ACCORDANCE WITH REPUBLIC ACT NO. 7656, 
PROVIDED, THAT SECTION 2(D) ON THE DETERMINATION OF THE 
DIVIDEND BASE AND SECTION 3 WITH RESPECT TO DIVIDEND BASE 
AND THE MANNER OF PAYMENT SHALL NOT APPLY. IN LIEU 
THEREOF, THE SUCCEEDING PARAGRAPHS SHALL BE APPLICABLE. 
For purposes of computing the amount of dividends to be declared and 
remitted to the [ft] National [§] Government, [all assessment collcetions-shatt 
not-be-eoftsidered as income] THE DIVIDEND BASE SHALL BE THE SUM 
OF ALL INCOME, BUT EXCLUDING ALL ASSESSMENT INCOME. NO 
OTHER DEDUCTIONS FROM THE DIVIDEND BASE SHALL BE 
ALLOWED. [The-dividend rate shall be at least-fifty percent (50%)-of-the 
income-from othcr-sourccs onlyr] SUCH CASH DIVIDENDS ACCRUING TO 
THE NATIONAL GOVERNMENT SHALL BE RECEIVED BY THE 
NATIONAL TREASURY AND RECORDED AS INCOME OF THE GENERAL 
FUND.
21
SEC. 13. Section 22 of the same Act is hereby further amended to read as
22 
follows;
23
"CORPORATE FUNDS AND ASSETS
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"SEC. 22. (a) X X X
"FINANCIAL ASSISTANCE
(e) [In the cxcrcisG-of-its authorities undor-Scction 11 of this Act—t] The 
Corporation is authorized to make loans to, or purchase the assets of, or 
assume liabilities of, or make deposits in:
(1) A bank in danger of closing, upon its acquisition by a qualified investor; 
or
(2) A qualified investor, upon its purchase of all assets and assumption of 
all liabilities of a bank in danger of closing; or
(3) A surviving or consolidated institution that has merged or consolidated 
with a bank in danger of closing; upon such terms and conditions as 
the Board of Directors may prescribe, when in the opinion of the Board 
of Directors, such acquisition, purchase of assets, assumption of 
liabilities, merger or consolidation, is essential to provide adequate 
banking service in the community or maintain financial stability in the 
economy.
THE CORPORATION MAY, TAKING INTO CONSIDERATION THE 
PECULIAR CHARACTERISTICS OF ISLAMIC BANKS, FORMULATE 
RULES AND REGULATIONS FOR THE EXTENSION OF FINANCIAL 
ASSISTANCE UNDER THIS SECTION.
The Corporation, prior to the exercise of the powers under this section, shall 
determine that actual payoff and liquidation thereof will be more expensive 
than the exercise of this power: Provided, That when the Monetary Board has 
determined that there are systemic consequences of a probable failure or
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closure of an insured bank, the Corporation may grant financial assistance to 
such insured bank in such amount as may be necessary to prevent its failure 
or closure and/or restore the insured bank to viable operations, under such 
terms and condition as may be deemed necessary by the Board of Directors, 
subjected to concurrence by the Monetary Board and without additional cost 
to the DIF AT THE TIME OF GRANTING THE FINANCIAL ASSISTANCE.
8 
SEC. 14. Section 24 of the same Act is hereby further amended to read as
9 
follows:
10 
"ISSUANCE OF BONDS, DEBENTURES, AND OTHER OBLIGATIONS
11 
"SEC. 24. With the approval of the President of the Philippines, upon the
12 
recommendation of the Department of Finance, the Corporation is authorized
13 
to issue bonds, debentures, and other obligations, both local or foreign, as
14 
may be necessary for purposes of providing liquidity for settlement of insured
15 
deposits in closed banks[7] OR to facilitate the implementation of [bank
16 
rcsolution-undcr-Soetien 11 of-this Act, os wdl-as-fer] financial assistance as
17 
provided herein: Provided, That the Board of Directors shall determine the
18 
interest rates, maturity and other requirements of said obligations: Provided,
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further. That the Corporation may provide for appropriate resen/es for the
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redemption or retirement of said obligation.
21xxx
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SEC. 15. Section' 26 (c) of the same Act is hereby deleted and renumbered
2 
accordingly:
5 XXX
6 
1 
8 
9
10
11 XXX
"SANCTIONS AND PENALTIES
"SEC. 26.
[(c) Without prior written consent of the Corporation; no-insured bank GhaH (-l-) 
merge or consolidate with any bank or institution or (2) assumo-liability to pay
any deposits made in> or-similar-liabilitio5-of; any-bank or institution or (3)
transfer-of assets-te-any bank-or-institution-in consideration of the-assumptien
of liabilities for-any portion-of the deposits-made in such insured banksr]
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SEC. 16. Section 28 of the same Act is hereby deleted and replaced as follows: 
[SEC. 28-.—Exempting -Glause:------ The Corporation shall be exempt from
Presidential Decree No:-985/ Presidential Decree No. 1507, Republic Act-Neh
6758r as-amended, Joint Resolutien No. d-(2Q0Q) and other laws on-salary
standardization,-Presidential-Decree No. 1177,-Executive-Qrder No. 2/18/ as 
amended;- Executive Order No-2Q8 and the provisions of Republic-Act-Nor
lOldO with regard-to position-classifieat-ion, qualific-ation-standards, ond-the
compensation-package of the employees of the Corporationr Provided,-That
the PDIC-shall be subject to-all-other policies under Rcpublic-Aet-No. 101d9,-
including,—but—not limited to, performance-evaluation by the Covernanee
Commission for Government-Owned or -Controlled-Corporations, selection-and 
nomination of appointive-directors, and limitations on the-creation of
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subsidiaries and the acquisition of-offiKatcs except in thc-casc of-acquisition of
shares in the-grant of financiai assistance under this-Aefer]
SEC. 28. EXEMPTION FROM THE BULK SALES LAW. - BANK 
LIQUIDATION INVOLVING THE PURCHASE OF ALL ASSETS AND 
ASSUMPTION OF ALL LIABILITIES OF A BANK TO A THIRD PARTY 
SHALL BE EXEMPT FROM THE PROVISIONS OF ACT NO. 3952, 
OTHERWISE KNOWN AS THE BULK SALES LAW'.
8 
SEC. 17. Implementing Rules and Regulations. - The Bangko Sentral ng
9 
Pilipinas, the Department of Finance, the Philippine Deposit Insurance Corporation,
10 
and other concerned government agencies shail promuigate the necessary
11 
implementing rules and regulations within sixty (60) days upon the effectivity of this
12 
Act.
13 
SEC. 18. Separability Clause. - If any provision of this Act is subsequently
14 
declared invalid or unconstitutional, the other provisions hereof which are not affected
15 
thereby shall remain in full force and effect.
16 
SEC. 19. Repealing Clause. - Section 17(c) of Repubiic Act No. 11439 on
17 
the Non-Applicability of Republic Act No. 3591, as amended, is hereby amended
18 
insofar as certain products or arrangements of Islamic Banks which may be deemed
19 
as deposit by the Bangko Sentral ng Pilipinas for purposes of this Act.
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All other laws, decrees, resolutions, instructions, and rules and regulations, or
2 
parts thereof which are inconsistent with this Act are hereby deemed repealed or
3 
modified accordingly.
4 
SEC. 20. Effectivity Clause. - This Act shall take effect fifteen (15) days
5 
after its publication in the Official Gazette or in a newspaper of general circulation.
Approved,
30