SENATE President Vicente Sotto III sought to amend Republic Act 3591 to strengthen the Philippine Deposit Insurance Corp. (PDIC).
The senator filed Senate Bill (SB) 1667 to enhance the country’s framework for bank liquidation.
It introduces an improved liquidation process to expedite the recovery of claims by creditors of closed banks, while further strengthening the PDIC as a financial safety net institution.
“It seeks to ensure the prompt release of deposit insurance claims so depositors can quickly access their savings if a bank shuts down,” Sotto said in a statement.
SB 1667 aims to make the Philippine deposit insurance system “more effective and responsive by reinforcing the PDIC’s independence, authority, and financial capability,” he said.
“The amendments will empower the PDIC to respond decisively to emerging risks and financial crises, while minimizing disruptions to the financial system,” Sotto said on Sunday.
“In times of financial crisis, the bill authorizes the temporary grant of full deposit insurance coverage, or temporary blanket coverage, upon determination by the Monetary Board when there is a threat to financial system stability,” he said.
The bill enhances deposit protection through expanded coverage and the implementation of differential insurance, extending deposit insurance to non-bank financial institutions and cooperative products deemed as deposits by the Bangko Sentral ng Pilipinas and the Cooperative Development Authority.