Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No, _8500

Introduced by Representative Eric L. Olivarez

EXPLANATORY NOTE

This bill aims to increase the maximum deposit insurance coverage
from five hundred thousand pesos (P 500,000.00) to one million pesos
(P1000,000.00) due to inflation and changes in the value of money and cost
of money.

As stated in Section 1 of Republic Act No. 3591, As Amended
otherwise known as “An Act Establishing the Philippine Deposit Insurance
Corporation, Defining it Powers and Duties and for other Purposes’, it is the
basic policy of the Corporation to “promote and safeguard the interests of
the depositing pubic by providing insurance coverage on all insured deposits
and helping maintain a sound and stable banking system (as amended by
R.A. 10846)

Section 2 of R.A. 3591, As Amended also provides for a strong
“mandatory deposit insurance coverage system to generate, preserve,
maintain faith and confidence in the country’s banking system, and protect
it from illegal schemes and machination.”


In line with the aforementioned State policies and considering the
fluctuations or changes in the value of money and cost of money due, it is
reasonable to periodically adjust the amount of maximum insured deposit to
“promote and safeguard the interests of the depositing pubic”; and the last
adjustment on the maximum coverage amount of insured deposit was done
two (2) years ago through Republic Act No. 10846, 11 June 2016. It
increased the amount of maximum insured deposit to the present five
hundred thousand pesos (P 500,000.00).

In view of the foregoing, passage of this bill is earnestly sought.

Qu 6. OW,

ERIC L. OLIVAREZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No, 8590

Introduced by Representative Eric L. Olivarez

AN ACT INCREASING THE MAXIMUM DEPOSIT INSURANCE COVERAGE
AMENDING FOR THIS PURPOSE SECTION 5 (j) OF REPUBLIC ACT
THREE THOUSAND FIVE HUNDRED NINETY ONE, AS AMENDED,
OTHERWISE KNOWN AS THE PDIC CHARTER, AND FOR OTHER
PURPOSES

SECTION 1. Section 5 (j) of Republic Act 3591, As Amended
otherwise known as “Act Establishing the Philippine Deposit Insurance
Corporation and for other Purposes” is hereby amended to read as follows:

“{) The term “insured deposit” means the amount due to any bona
fide depositor for legitimate deposits in an insured bank net of any
obligation of the depositor to the insured bank as of date of closure,
but not to exceed ONE MILLION PESOS (P1,000,000.00). 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 in the same right and capacity for his benefit either
in his own name or in the name of others. A joint account regardless
of whether the conjunction ‘and,’ ‘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: 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,

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shall likewise be subject to the maximum insured deposit of ONE
MILLION PESOS (P1000,000.00): Provided, furthermore, That the
provisions of any law to the contrary notwithstanding, no
owner/holder of any negotiable certificate of deposit shall be
recognized as a depositor entitled to the rights provided in this Act
unless his name is registered as owner/holder thereof in the books
of the issuing bank: Provided, finally, That, in case of a condition
that threatens the monetary and financial stability of the banking
system that may have systemic consequences, as defined in Section
22 hereof, 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, subject to the
approval of the President of the Philippines.”

Section 2. Implementing Rules and Regulations. - Within thirty (30)
days from the effectivity of this Act, the Secretary of Finance shall, upon
recommendation of the Commissioner of Internal Revenue, promulgate the
necessary rules and regulations of this Act.

Section 3. Separability Clause. - If any provision of this Act is
declared invalid or unconstitutional, the other provisions hereof which are
not affected thereby shall continue to be in force and effect.

Section 4. Repealing Clause. - Any law presidential decree or
issuance, executive order, letter of instruction, administrative order, rule or
regulation contrary to or inconsistent with any provision of this Act is
hereby repealed or modified accordingly.

Section 5. Effectivity. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or a newspaper of general
circulation.