FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
Republic Act 3591 created the Philippine Deposit Insurance Corporation 
(PDIC) in 1963 for the purpose of insuring bank deposits. The primary objective 
for such creation was to provide depositor protection and to strengthen public 
confidence in the banking system, with the end in view of fostering financial 
stability. 
Republic Act 9302 was enacted on 27 July 2004, amending Republic Act 
3591, which provided enhanced depositor protection through increased deposit 
insurance coverage up to P250,OOO and strengthened PDIC's risk management 
capabilities through the restoration of PDIC's authority to examine member banks 
with prior approval by the Monetary Board. 
Under the current law, if a closed bank is neither rehabilitated nor taken 
over by another bank, the amount in excess of the P250,OOO.OO insurance 
coverage can only be claimed upon the final liquidation of the remaining assets of 
the closed bank. Hence, the said claim will be dependent on the availability of the 
banks assets following the settlement of its preferred claims, the priorities of 
which being provided by law and upon approval of the Liquidation Court. 
Recent events in the global community saw the collapse in the financial 
standing of credit economies. No less than the United States of America itself fell 
victim to such woes. 
It is a basic economic principle that the public's perception and confidence 
in the capacity of the banking industry greatly influence the stability, or the lack 
thereof, of the financial market. Hence, despite past reforms that have been 
implemented to allow our economy to endure financial uncertainties, the PDIC's 
hands are tied with the current statutory limitations being imposed upon it. 
With an increase in the Maximum Deposit Insurance Coverage to 
P500,000.00, this is expected to bolster the public's perception of stability of our 
banking industry, ensuring the continuous flow of funds in our money markets. 
In view of the foregoing, passage of this bill is urgently requested 


FOURTEENPI-! CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT AMENDING REPUBLIC ACT 3591, AS AMENDED, OTHERWISE 
KNOWN AS "THE CHARTER OF THE PHILIPPINE DEPOSIT INSURANCE 
CORPORATION" 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Section 4, paragraph (9) of Republic Act No. 3591, as 
amended is hereby 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 (P250,000.00)] FIVE HUNDRED 
THOUSAND PESOS (P500,000.00). xxx 
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 of [Two hundred fifty thousand 
pesos 
(P250,OOO.OO)J 
FIVE 
HUNDRED 
THOUSAND 
PESOS 
(P500,OOO.OO): Provided, furthermore, that the provisions of any law to the 
contrary notwithstanding, no ownedholder 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. 
SEC. 2 Separability Clause. - If any of the provisions or sections 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, shall not be affected thereby. 
SEC. 3. Repealing Clause. - All laws, decrees, executive orders, letters of 
instructions, rules and regulations or parts thereof which are inconsistent with this 
Act are hereby repealed, amended or modified accordingly. 
SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or at least two (2) newspapers of general 
circulation, 
Approved,