by Mai Gacilo Sangalang / first published on BusinessMirror, March 27, 2025
PEOPLE bank for various reasons; but primarily to protect their hard-earned money, earn interest from investments, benefit from financial management convenience, have access to other bank products and services, and be protected by deposit insurance.
With the recent announcement of the Philippine Deposit Insurance Corp. (PDIC) that it has doubled the maximum deposit insurance coverage (MDIC) to P1 Million per depositor per bank beginning March 15, more deposits will now be protected and, hopefully, more people will be encouraged to save in banks.
The MDIC adjustment may be long overdue, with the last increase taking effect in 2009 from P250,000 to P500,000. Under the 2022 amendments to its Charter, the PDIC is now authorized to review the MDIC every 3 years with the next one due in 2028, to consider if another adjustment is warranted by inflation or other economic conditions, including shifts in the financial landscape. With this, the depositing public is assured that the responsiveness of the MDIC will be periodically assessed.
PDIC said the new MDIC will now provide insurance to 98.6 percent of total deposit accounts in the Philippine banking system, which means, added financial stability for the country and greater peace of mind for bank depositors.
All member banks of PDIC are enjoined to inform their depositors and prominently display the Notice to Depositor on the new MDIC statement in various customer touchpoints. The Bank Marketing Association of the Philippines (BMAP) will also take a proactive role in the implementation of these efforts. The BMAP is optimistic on all positive outcomes of these developments.
We definitely think that the higher insurance coverage will improve the public’s confidence in the banking system and encourage more Filipinos to open a bank account. The added safety net is expected to contribute to increased financial inclusion of unbanked adult Filipinos, which is at 65 percent in 2022 according to the Bangko Sentral ng Pilipinas.
Consultative meeting
THE PDIC also met with the BMAP and the Ad Standards Council last week to review and comment on proposed changes to the Regulatory Issuance (RI) on Advertisements and Proper Use of the PDIC Seal, Insurance Statement and Signages. The review is primarily focused on how PDIC can be more responsive to the changing advertising landscape for banks and the recent MDIC adjustment. The revised RI refines advertising requirements for banks, aligning them with best practices to enhance transparency and depositor awareness. The RI is expected to be finalized and circulated within the year.
12th Araw Values Awards
I attended last week the awarding ceremony of the 12th “Araw Values Awards” at the Aliw Theater in Pasay City where I had the privilege to be part of the distinguished panel of judges. The “Araw Values Awards” is a biennial advocacy program of the Advertising Foundation of the Philippines in partnership with the Ad Standards Council that recognizes and celebrates the most impactful ad campaigns promoting Filipino values. Congratulations to this year’s most deserving winners!
Mai Gacilo Sangalang is the immediate past president of the Bank Marketing Association of the Philippines and currently its director for industry relations, banking code and financial inclusion. Sangalang is the head of Corporate Affairs, Brand and Marketing of the Standard Chartered Bank Philippines. The writer’s views do not necessarily reflect those of the BusinessMirror and the BMAP.