MANILA – Senate President Vicente Sotto III filed Senate Bill No. 1667 seeking to reinforce the Philippine Deposit Insurance Corporation’s (PDIC) independence, authority, and financial capacity to better protect depositors and ensure stability in the financial system.

“The amendments will empower the PDIC to respond decisively to emerging risks and financial crises, while minimizing disruptions to the financial system,” Sotto said.

The proposed measure aims to enhance deposit protection by expanding coverage and implementing differential insurance, including deposits held in Non-Bank Financial Institutions (NBFIs) and cooperative products recognized as deposits by the Bangko Sentral ng Pilipinas (BSP) and the Cooperative Development Authority (CDA).

The bill also mandates the prompt release of deposit insurance claims, allowing depositors to quickly access their savings in the event of a bank closure.

Additionally, it authorizes the temporary grant of full deposit insurance coverage, or Temporary Blanket Coverage, when the Monetary Board determines that the financial system faces a significant threat.

Amendments to the PDIC law under the bill further introduce an enhanced liquidation process to speed up recovery of claims by creditors of closed banks, while strengthening the PDIC’s role as a financial safety net.