Proactive partners for depositor protection and consumer education. The Philippine Deposit Insurance Corporation (PDIC) and the Bankers Institute of the Philippines (BAIPHIL) recently collaborated for a learning session that empowered banks with a better understanding of the maximum deposit insurance coverage (MDIC) provided by PDIC at P1 million per depositor, per bank. PDIC Vice President Jose G. Villaret, Jr. (topmost from the left) discussed the topic, “Maximum Deposit Insurance Coverage (MDIC) @P1 Million: Theoretical and Operational Perspective for Bankers” during the BAIPHIL’s webinar for banks held on March 10, 2026.
The Philippine Deposit Insurance Corporation (PDIC) continues to strengthen its partnership with the banking industry through a recent collaboration with the Bankers Institute of the Philippines (BAIPHIL) in support of the BAIPHIL Training and Development Week from March 9 to 14, 2026.
In support of this year’s theme, “BAIPHIL @85: Partnerships that R.I.S.E. – Resilience. Inclusivity. Sustainability. Engagement.”, PDIC Vice President Jose G. Villaret, Jr. (Corporate
Affairs Group) discussed the topic, “Maximum Deposit Insurance Coverage (MDIC) @P1 Million: Theoretical and Operational Perspective for Bankers” on March 10, 2026.
VP Villaret highlighted that the MDIC has been increased as a proactive measure designed to enhance depositor protection and promote financial stability. The adjustment was based on a methodology using economic indicators in alignment with best international practices. The higher MDIC also translates to more depositors being protected, thereby increasing confidence in the banking system. In terms of deposit amounts, the share of insured deposits to total deposits increased from 18.4% in 2024 to 23.9% in 2025, in step with international benchmark of at least 20% to subject significant deposit amounts to promote market discipline.
The MDIC is supported by the Deposit Insurance Fund (DIF), which is the PDIC’s capital account. VP Villaret assured the BAIPHIL learning participants that the DIF is robust, prudently managed, and well-positioned to support the increase in the MDIC. Hence, there is no need to increase the assessment rate paid by banks to PDIC.
Recognizing that banks’ extensive networks and frequent interface with the depositing public provide strategic advantage to be agents of information that help communicate the message of depositor protection to encourage more people to save in banks, VP Villaret urged banks to help their clients know more about deposit insurance by sharing and amplifying PDIC’s public awareness materials in various platforms such as TV, radio, out of-home advertisements, and social media.
The PDIC is mandated to protect bank depositors through deposit insurance, a government policy that protects depositors and helps promote financial stability. The MDIC of P1 million per depositor, per bank has been in effect since March 15, 2025 when the PDIC Board of Directors authorized the increase from the previous ceiling of P500,000. The PDIC Board’s authority to increase the MDIC is aligned with the provisions of the PDIC Charter or Republic Act No. 3591, as amended.
For more information on the PDIC and its mandates and advocacies, visit www.pdic.gov.ph or www.facebook.com/OfficialPDIC.
