MANILA — Deposits in the country’s banking system posted stronger growth one year after the maximum deposit insurance coverage (MDIC) was increased to P1 million per depositor, per bank, the Philippine Deposit Insurance Corporation (PDIC) said.

The state deposit insurer reported the figures during its “PDIC 101: Understanding Deposit Insurance” event held in partnership with the Philippine Information Agency on Aug. 5.

PDIC Vice President Jose G. Villaret Jr. said bank deposits grew by 9.8 percent as of the end of March 2026, following the implementation of the higher deposit insurance coverage on March 15, 2025.

The growth was higher than the 5.3 percent recorded during the same period in 2024, before the increase in the MDIC took effect.

According to the PDIC, the largest increase came from depositors with balances exceeding P1 million, whose deposits rose by 10.3 percent, nearly double the 5.4 percent growth recorded before the adjustment in deposit insurance coverage.

The agency said thrift and rural banks posted the strongest gains in large deposit balances, reflecting increased depositor confidence across the banking sector.

“The increase in deposit insurance coverage has reinforced public trust in our banking system and encouraged more people to keep their savings in banks,” Villaret said.

The PDIC also said the Philippines remains among the top three ASEAN economies in terms of deposit insurance coverage relative to gross domestic product (GDP) per capita, based on 2025 World Bank data.

It said the country’s ratio of deposit insurance coverage to GDP per capita stands at 4.2, behind only Malaysia and Indonesia, indicating that the Philippine deposit insurance system is aligned with regional and international standards.

The increase in the MDIC to P1 million marked the first adjustment in 16 years and was implemented to keep depositor protection responsive to inflation, consistent with global best practices, and relevant to the changing needs of depositors.

The PDIC said it was also the first time its Board of Directors exercised its authority under the amended PDIC Charter to revise the maximum deposit insurance coverage following changes to the deposit insurance law in July 2022.