MANILA — The Philippine Deposit Insurance Corporation (PDIC) has introduced a proposed Risk-Based Assessment System (RBAS) that would determine banks’ deposit insurance premium rates based on their individual risk profiles.

The proposed framework was presented during the “PDIC 101: Understanding Deposit Insurance” press conference held in partnership with the Philippine Information Agency (PIA) on Aug. 5 in Quezon City.

PDIC General Counsel Maria Antonette I. Brillantes-Bolivar, who heads the agency’s RBAS working group, said the proposed reform aims to strengthen risk governance among banks while maintaining the maximum deposit insurance coverage of P1 million per depositor, per bank.

Under the current system, banks pay a flat assessment rate equivalent to one-fifth of one percent of total deposit liabilities. The proposed RBAS would instead adopt a risk-based approach, with assessment rates determined by each bank’s overall risk profile.

The framework will consider factors including capital adequacy, liquidity, asset quality, governance, business model, and supervisory assessments adopted by the Bangko Sentral ng Pilipinas (BSP).

“The RBAS promotes fairness by ensuring that assessment rates better reflect a bank’s level of risk. It also encourages banks to strengthen governance, maintain adequate capital, and adopt sound risk management practices that contribute to a safer and more resilient banking system,” Atty. Bolivar shared.

The PDIC said the RBAS is being developed with advisory support from the World Bank Group and in consultation with the BSP and various banking associations.

Under the proposed system, financial and supervisory indicators will be combined to generate a composite risk score that will determine a bank’s assessment rate. Banks with stronger risk profiles may qualify for lower assessment rates.

The agency said the framework is also aligned with the Core Principles for Effective Deposit Insurance Systems of the International Association of Deposit Insurers, which encourage the use of risk-sensitive premium assessment systems.

Before its full implementation in 2028, the PDIC will conduct a one-year shadow run to test and refine the framework. During this period, banks will continue paying the existing flat assessment rate while receiving estimates of the premiums they would pay under the proposed system.

The PDIC said all bank-specific assessments, simulated scores, and risk ratings under the RBAS will remain confidential. It added that the framework includes mechanisms for clarification, review, and periodic recalibration to ensure it remains responsive to changing industry conditions.

The state deposit insurer said the proposed RBAS supports its role as a co-regulator of banks alongside the BSP by promoting prudent risk management, financial stability, and depositor protection.