MANILA — The Philippine Deposit Insurance Corporation (PDIC) has expressed support for Senate Bill No. 1667, which seeks to strengthen the country’s deposit insurance system.

In a news release, the PDIC said the measure, filed by Senate President Vicente C. Sotto III, aims to amend Republic Act No. 3591 or the PDIC Charter to enhance the state deposit insurer’s institutional capacity to protect depositors and promote financial stability .

“The PDIC welcomes the support of the Senate President in championing legislative reforms that would strengthen the country’s financial safety net and better protect the depositing public,” PDIC President and CEO Roberto B. Tan said .

The PDIC noted that the higher maximum deposit insurance coverage (MDIC) of P1 million per depositor per bank has been in effect since March 15, 2025. It said the proposed amendments would provide the legal framework for a more responsive and resilient deposit insurance system .

The bill contains a six-point legislative agenda: expanded coverage to non-bank financial institutions (NBFIs) and cooperatives; higher insurance protection for socially and economically critical accounts; faster settlement of deposit insurance claims; exclusive use of the Deposit Insurance Fund (DIF); crisis-driven temporary blanket guarantee; and enhanced liquidation of closed banks with institutional strengthening .

Under the proposal, deposit insurance coverage would be extended to deposits offered by NBFIs supervised by the Bangko Sentral ng Pilipinas and cooperatives supervised by the Cooperative Development Authority .

The measure would also allow differential coverage above the MDIC for accounts with high social or economic value, such as retirement savings, payroll, and settlement accounts .

To speed up claims, banks would be required to maintain comprehensive and accurate electronic deposit records, and the PDIC would be exempted from Bank Secrecy Laws to allow swift verification and payout. The proposal also states that only a Supreme Court-issued temporary restraining order or injunction could stop the payment of deposit insurance claims .

The bill seeks to ringfence the DIF exclusively for deposit insurance claims and financial assistance to distressed banks . It would also authorize the PDIC to implement temporary full deposit insurance coverage during systemic crises, upon determination by the Monetary Board of the Bangko Sentral ng Pilipinas .

“These proposed measures are critical to strengthening depositor protection and reinforcing public confidence in the stability of the financial system. These will ensure our deposit insurance system is responsive to changing times and the Deposit Insurer has the much-needed tools and authorities that can be deployed during periods of crisis,” Tan said .

The PDIC said it will continue to collaborate with legislators, regulators, and industry stakeholders to push for the bill’s passage .