Philippine Deposit Insurance Corporation Overview
16 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which type of account is excluded from PDIC deposit insurance?

  • Fictitious deposit accounts (correct)
  • Savings accounts in rural banks
  • Mortgage loans
  • Foreign currency deposits

What is the mandatory requirement regarding banks and PDIC membership?

  • All operating banks are mandatory members of PDIC. (correct)
  • Only rural banks are required to be members of PDIC.
  • All banks must apply for PDIC membership annually.
  • Banks can choose to opt out of PDIC membership.

Which of the following types of deposits may be insured by PDIC with additional approvals?

  • Deposits in banks that fail
  • Deposits in foreign branches of Philippine banks (correct)
  • Deposits in investment accounts
  • Deposits in offshore accounts

Which of the following is true regarding the coverage of foreign currency deposits by PDIC?

<p>Foreign currency deposits are insured under RA 6426. (A)</p> Signup and view all the answers

Which transaction type is insured by PDIC?

<p>Deposit accounts in cooperative banks (B)</p> Signup and view all the answers

What is the condition under which PDIC may insure deposits in branches of foreign banks?

<p>If the foreign bank is licensed by Bangko Sentral ng Pilipinas. (A)</p> Signup and view all the answers

Under the Anti-Money Laundering Law, which type of deposits will PDIC not insure?

<p>Deposits determined to be proceeds of unlawful activities (C)</p> Signup and view all the answers

What types of banks are included under PDIC deposit insurance coverage?

<p>Private development banks and savings and loan associations (A)</p> Signup and view all the answers

What year was the Philippine Deposit Insurance Corporation (PDIC) established?

<p>1963 (D)</p> Signup and view all the answers

What is the maximum deposit insurance coverage provided by PDIC effective June 1, 2009?

<p>P500,000 (D)</p> Signup and view all the answers

Which of the following is NOT a function of PDIC?

<p>Issuer of Bank Loans (A)</p> Signup and view all the answers

What significant power was granted to PDIC under the amendments in RA 10846?

<p>Hastening the liquidation process for closed banks (A)</p> Signup and view all the answers

What is one of the primary mandates of PDIC?

<p>To provide depositors access to funds during bank closures (C)</p> Signup and view all the answers

Which statement accurately describes an 'insured deposit' according to PDIC?

<p>It refers to the amount due to a bona fide depositor not exceeding P500,000. (C)</p> Signup and view all the answers

What does R.A. No. 9576 allow PDIC to do concerning the maximum deposit insurance coverage?

<p>Adjust the coverage subject to presidential approval (A)</p> Signup and view all the answers

Who exercises complementary supervision of banks alongside PDIC?

<p>Central Bank of the Philippines (A)</p> Signup and view all the answers

Flashcards

PDIC's Purpose

The Philippine Deposit Insurance Corporation insures bank deposits to build public trust and financial stability.

PDIC Mandate

PDIC ensures timely deposit payments, supervises banks, manages resolutions & liquidations efficiently.

PDIC Functions

PDIC acts as a deposit insurer, co-regulator and receiver/liquidator of failing banks.

Maximum Deposit Insurance

The maximum insured deposit per depositor is PHP 500,000.

Signup and view all the flashcards

Insurable Deposit

The amount a depositor is owed, up to a maximum, after subtracting any debts owed to the bank.

Signup and view all the flashcards

Joint Account Insurance

Joint accounts are insured separately from individual accounts.

Signup and view all the flashcards

PDIC's Status

PDIC is an attached agency to the Department of Finance.

Signup and view all the flashcards

PDIC's Authority Changes

RA 10846 strengthened PDIC's power to help depositors and resolve bank issues quickly and effectively.

Signup and view all the flashcards

PDIC deposit insurance exclusions

RA 9576 lists specific types of accounts and transactions not covered by deposit insurance, including investment products (bonds, securities, trusts), unfunded/fraudulent deposits, deposits from unsafe banking practices, and proceeds of illegal activities.

Signup and view all the flashcards

PDIC membership

All operating banks in the Philippines are required to be members of the Philippine Deposit Insurance Corporation (PDIC).

Signup and view all the flashcards

Insured deposit types

PDIC insures deposits from various bank types—commercial, savings, mortgage, rural, development, cooperative, and savings & loan associations—including foreign bank branches and authorized banking corporations in the Philippines.

Signup and view all the flashcards

Foreign currency deposits

Foreign-currency deposits are also insured by PDIC, following RA 6426 and CB Circular 1389.

Signup and view all the flashcards

Overseas Philippine bank branches

Philippine banks with branches outside the Philippines can elect to insure their overseas deposits with PDIC, subject to board approval.

Signup and view all the flashcards

Foreign bank branch deposits

PDIC covers deposits in branches or subsidiaries of foreign banks licensed in the Philippines by the Bangko Sentral ng Pilipinas (BSP).

Signup and view all the flashcards

Philippine bank branches abroad

Philippine banks with branches abroad can choose to get their overseas deposits insured by the PDIC, but it is not mandatory.

Signup and view all the flashcards

Excluded accounts

Investment products, unfunded/fraudulent accounts, deposits from unsound banking practices, and proceeds of illegal activities are not insured by PDIC.

Signup and view all the flashcards

Study Notes

Philippine Deposit Insurance Corporation (PDIC)

  • Established by Republic Act 3591 in 1963 to insure bank deposits
  • Amended by Republic Act 10846 in 2016, strengthening its powers to protect depositors and promote financial stability
  • Attached agency of the Department of Finance
  • Mandate is to provide deposit insurance, promote public trust, and ensure banking stability
  • Functions include deposit insurance, co-regulation of banks, and receivership/liquidation of closed banks

Maximum Deposit Insurance Coverage

  • P500,000 per depositor per insured bank, regardless of the different accounts held in the same bank
  • Maximum deposit insurance coverage (MDIC) may be adjusted by the PDIC, subject to Presidential approval, if the stability of the banking system is threatened
  • Joint accounts are insured separately
  • Investment products, unfunded deposits, fictitious deposits, fraudulent deposits, proceeds of unlawful activities, and products from unsafe/unsound banking practices are not insured

Insured Deposits

  • Insured deposit is the amount owed to a depositor minus any obligations to the insured bank, up to a maximum of P500,000, at the time of bank closure
  • Foreign currency deposits are insured, and payment is made in the same currency
  • Types of insured deposits include those held in commercial banks, savings/mortgage banks, rural banks, private development banks, cooperative banks, savings and loan associations, and foreign bank branches/agencies, all authorized in the Philippines to perform banking functions
  • Philippine banks with branches abroad may choose to insure those deposits with PDIC approval

Exclusions from Insurance

  • Investment products (bonds, securities, trust accounts)
  • Unfunded, fictitious, or fraudulent deposits
  • Deposits resulting from unsafe/unsound banking practices
  • Proceeds from unlawful activities

PDIC Membership

  • Membership is mandatory for all operating banks in the Philippines

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Description

This quiz covers the establishment, functions, and maximum deposit insurance coverage of the Philippine Deposit Insurance Corporation (PDIC). It delves into the key amendments and the importance of ensuring banking stability and protecting depositors. Test your knowledge on how the PDIC promotes public trust in the banking system.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser