FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
1 
SENATE 
s. No. 
8 
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
The current global financial crisis, dubbed as The Great Depression in modern 
time, if not even worse, requires appropriate attention and prompt consideration. 
Albeit the Philippine Banking System is strong and stable, there is a need to 
ensure public trust and confidence in banking and investment if only to overcome the 
worst financial debacle in eight (8) decades. 
Recently, leading economies in the world, like the United States (US) and the 
member-states of the G7, have come out with bailout proposals to address the financial 
woe. Sadly, however, the initial US $700 billion bailout fails to fully address the fear of 
what has become an insurmountable uncertainty in the global economic market. 
It is in this light that this bill seeks to strengthen the very foundation of the 
banking system. It may not be in the form of a bailout, which we do not need and may 
not afford at the moment, but it provides the needed requirement to maintain and 
promote stability in the banking sector. 
Hence, it is proposed that the maximum deposit insurance coverage per 
depositor be increased from P250,OOO.OO to P500,OOO.OO. The Philippine Deposit 
Insurance System (PDIC) as the government institution concerned is consequently 
given a doubled statutory limitation in providing the maximum deposit insurance 
coverage for our country's depositors and investors. 
FRANCIS G. ESCUDERO 


SENATE 
S. No. 
$ 
!. 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT AMENDING REPUBLIC ACT NUMBERED THREE THOUSAND 
FIVE HUNDRED NINETY-ONE, AS AMENDED, OTHERWISE KNOWN AS ”THE 
CHARTER OF THE PHILIPPINE DEPOSIT INSURANCE CORPORATION” 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 4 of Republic Act No. 3591 is hereby re-numbered as Section 
1 and subsection (g) thereof is further amended to read as follows: 
“(8) 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,OO.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 of [Two hundred fifty thousand pesos (P250,000.00)] FIVE 
HUNDRED THOUSAND PESOS (P500,OO.OO): Provided, furthermore, That 
the provisions of any law to the contrary notwithstanding, no ownerholder 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 ownerlholder thereof in 
the books of the issuing bank. 
SEC 2. Separability Clause. - If any of the 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, or parts thereof which are inconsistent with the provisions of this Act are hereby 
repealed. 
SEC 4. 
Effectivity Clause. - This Act shall take effect (15) days following the 
completion of its publication in the Official Gazette or'in two (2) newspapers of general 
circulation. 
Approved,