Financial Sector Assessment Program Update : Assessment of Philippines Deposit Insurance Corporation

The global economic and financial sector crisis of 2008-09 became a stark reminder to countries around the world of the need for an effective process for maintaining the confidence of depositors and resolving troubled financial institutions with the least amount of adverse impact on the financial sector and the community served by the institutions. The role of deposit insurance was highlighted during this difficult time. Nations without a formal system found the need to reassure their citizens by announcing formal government guaranties. Nations with established systems were not immune from the public's concern and as a result many increased the allowable coverage. The Philippines, although somewhat immune from the global crisis, none the less felt the impact of the crisis and responded, as did other countries, by taking steps to address the possible impact of the crisis by bolstering depositor confidence. The Philippines stands out among its Asian neighbors at being in the forefront of deposit insurance. Long before deposit insurance became popular at the peak of the Asian financial crisis of the late 1990's, the Philippines already had an established formal deposit insurance system. The Philippine Deposit Insurance Corporation (PDIC) is a government instrumentality. It was established in June 1963 with the passage of Republic Act (RA) 3591. The role of PDIC at that time was to help build the banking sector by encouraging citizens to save and to deposit those savings in the formal banking system. It was to do this by assuring depositors of the safety of their deposits by providing a government sponsored insurance of up to a P 10,000 per depositor in the event of a bank failure. The underlying motivation was to promote a safe and sound banking system and to foster public confidence in it.

Bibliographic Details

Main Authors:	International Monetary Fund, World Bank
Language:	English en_US
Published:	World Bank, Washington, DC 2011-02
Subjects:	ACCESS TO DEPOSIT, ACCOUNTING, ACCURATE INFORMATION, ADMINISTRATIVE PROCEDURES, ALL LIABILITIES, AMOUNT DUE, ASPECTS OF DEPOSIT INSURANCE, ASSET DETERIORATION, ASSET RECOVERIES, ASSOCIATION OF DEPOSIT INSURERS, AUDIT COMMITTEE, AUDITORS, AUDITS, BANK CLOSURE, BANK CUSTOMERS, BANK FAILURE, BANK FOR INTERNATIONAL SETTLEMENTS, BANK LIQUIDATIONS, BANK OWNERS, BANK SECRECY, BANK SUPERVISORS, BANKING ASSETS, BANKING LAWS, BANKING PRACTICE, BANKING PRACTICES, BANKING SECTOR, BANKING SERVICES, BANKING SUPERVISION, BLANKET GUARANTEE, BLANKET GUARANTEES, BOND, BRANCH NETWORK, BUSINESS BORROWER, CAPITAL MARKETS, CENTRAL BANK, CLAIM, CLAIM FORMS, CLOSED BANKS, CODE OF CONDUCT, CODE OF ETHICS, COMMERCIAL BANKS, CONFLICTS OF INTEREST, COOPERATIVE BANKS, CORPORATE GOVERNANCE, COST OF DEPOSIT INSURANCE, COVERAGE AMOUNT, COVERAGE AMOUNTS, COVERAGE LIMIT, COVERAGE LIMITS, CREDIBILITY, CREDITORS, CREDITS, CRIMINAL ACTS, DEFALCATION, DEFAULTS, DEPOSIT, DEPOSIT ACCOUNT, DEPOSIT ACCOUNTS, DEPOSIT COVERAGE, DEPOSIT INSURANCE, DEPOSIT INSURANCE AGENCIES, DEPOSIT INSURANCE CLAIMS, DEPOSIT INSURANCE CORPORATION, DEPOSIT INSURANCE COVERAGE, DEPOSIT INSURANCE COVERAGE LIMIT, DEPOSIT INSURANCE FUND, DEPOSIT INSURANCE PROGRAM, DEPOSIT INSURANCE REGIME, DEPOSIT INSURANCE SYSTEM DESIGN, DEPOSIT INSURANCE SYSTEMS, DEPOSIT INSURER, DEPOSIT TAKING INSTITUTION, DEPOSIT TAKING INSTITUTIONS, DEPOSITOR, DEPOSITOR CONFIDENCE, DEPOSITORS, DEPOSITORY, DEPOSITS, DEPOSITS OF BANKS, DERIVATIVE, DERIVATIVE TRANSACTIONS, DEVELOPMENT BANKS, DISCLOSURE OF INFORMATION, EFFECTIVE DEPOSIT INSURANCE, EFFECTIVENESS OF DEPOSIT INSURANCE, ESTATE, EXTENT OF COVERAGE, FAILING BANK, FAILURE RESOLUTION, FEDERAL DEPOSIT INSURANCE, FEDERAL DEPOSIT INSURANCE CORPORATION, FINANCIAL CONDITION, FINANCIAL CRISIS, FINANCIAL DIFFICULTIES, FINANCIAL DIFFICULTY, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL STABILITY, FINANCIAL SYSTEM, FORBEARANCE, FOREIGN BANKS, FOREIGN BRANCHES, FORMAL BANKING SYSTEM, FORMAL DEPOSIT INSURANCE, FORMAL DEPOSIT INSURANCE SYSTEM, FRAUD, GENERAL OBSERVATIONS, GOOD FAITH, GOVERNANCE STRUCTURE, GOVERNMENT DEPOSITS, INDIVIDUAL DEPOSIT, INDIVIDUAL DEPOSITORS, INFLATION, INFORMATION DISSEMINATION, INSOLVENT, INSTITUTIONS FOR DEPOSIT, INSURABLE DEPOSIT, INSURANCE FUND, INSURED BANK, INSURED BANKS, INSURED COVERAGE, INSURED DEPOSIT, INSURED DEPOSITORS, INSURED DEPOSITORY INSTITUTION, INSURED DEPOSITORY INSTITUTIONS, INSURED DEPOSITS, INTERNATIONAL BANK, INTERNATIONAL SETTLEMENTS, INTERPRETATION OF LAWS, INVENTORY, INVENTORY OF ASSETS, INVESTMENT POLICY, JUDGES, JUDICIAL PROCESS, JUDICIARY, JURISDICTIONS, LEGAL ACTIONS, LEGAL FRAMEWORK, LEGAL PROTECTION, LEGISLATION, LENDER, LEVEL OF COVERAGE, LIABILITY, LIMITED COVERAGE, LIMITED COVERAGE SYSTEM, LINES OF CREDIT, LIQUIDATION, LIQUIDATION OF ASSETS, LIQUIDITY, LOAN, LOAN ASSOCIATIONS, LOAN PAYMENTS, LOCAL GOVERNMENT, MANDATE, MANDATES, MANDATORY DEPOSIT INSURANCE, MANDATORY PARTICIPATION, MONETARY FUND, MORAL HAZARD, MORAL HAZARD RISK, MORTGAGE, MORTGAGE BANKS, NUMBER OF BANKS, OBJECTIVES FOR DEPOSIT INSURANCE, OBLIGATIONS TO DEPOSITORS, OPEN BANK, OPEN BANKS, PENALTIES, PRIVATE BANKS, PROMPT CORRECTIVE ACTION, PROMPT CORRECTIVE ACTIONS, PROMPT PAYMENT, PRUDENTIAL REGULATIONS, PUBLIC CONFIDENCE, PUBLIC FUNDS, PUBLIC POLICY, RECEIVER, RECEIVERSHIP, RECORD KEEPING, REGULATORY SYSTEM, REHABILITATION PLAN, REHABILITATION PLANS, RESERVE REQUIREMENTS, RIGHT OF SUBROGATION, RISK MANAGEMENT, RISK TAKING, ROLE OF DEPOSIT INSURANCE, RURAL BANKS, SAFETY NET, SALARIES, SALARY, SAVINGS, SAVINGS BANKS, SETTLEMENT, SMALL BUSINESS, SMALL BUSINESSES, SMALL DEPOSITORS, SOVEREIGN GUARANTEE, SPECIAL ASSESSMENTS, SUBROGATION, SUPERVISORY POWERS, TRANSFER OF DEPOSITS, UNINSURED DEPOSITOR, UNSOUND BANKING, VOLUME OF DEPOSITS,
Online Access:	http://documents.worldbank.org/curated/en/2011/02/18019633/assessment-philippines-deposit-insurance-corporation https://hdl.handle.net/10986/16057
Tags:	Add Tag No Tags, Be the first to tag this record!