TAGAYTAY CITY — The Philippine Deposit Insurance Corporation (PDIC) reaffirmed its support for rural banks through increased deposit insurance coverage and capability-building initiatives aimed at bolstering depositor confidence and financial stability in the countryside.

During the 68th Charter Anniversary Symposium of the Rural Bankers Association of the Philippines (RBAP), PDIC President and CEO Roberto B. Tan announced the increase in the maximum deposit insurance coverage (MDIC) from P500,000 to P1 million per depositor starting March 15, 2025.

“This increase, the first in 16 years, will now fully insure 99.8% of all deposit accounts in rural banks based on deposit data as of end December 2024,” Tan said.

The move, he added, was data-driven and aligned with recommendations from the World Bank and international best practices. It was enabled by the 2022 amendment to the PDIC Charter, allowing the agency’s board to adjust the MDIC based on inflation and other economic indicators.

Tan also revealed that PDIC plans to propose further legislative reforms to broaden insurance protection beyond traditional bank deposits. “We are conducting consultations with financial regulators and stakeholders in developing this inclusive policy move which will require a phased feasibility study,” he said, adding that differentiated coverage limits are also being considered to enhance financial stability.

As part of its advocacy for financial literacy, PDIC is intensifying public education through its “Be a Wise Saver” program and the upcoming “Be an Empowered Saver” campaign, which aim to promote informed financial decision-making amid the growth of digital financial services.

Tan also underscored PDIC’s collaboration with RBAP to pilot a governance-focused training program designed to enhance internal controls and deposit operations among rural banks. The initiative targets the next generation of banking leaders and will include case studies based on actual bank examinations, with plans to expand its reach to more banks nationwide.

The PDIC, a state-run agency attached to the Bangko Sentral ng Pilipinas, was established in 1963 to protect depositors and promote stability in the country’s financial system.