2. Deposit Insurance Coverage

Deposit Insurance Coverage under RA 3591

The Philippine Deposit Insurance Corporation (PDIC) is created to insure the deposits of all banks entitled to the benefits of insurance under Republic Act No. 3591¹. An "insured bank" is any bank whose deposits are insured in accordance with the Act². The coverage extends broadly across the banking system, as the term "bank" or "banking institution" includes commercial banks, savings banks, mortgage banks, rural banks, development banks, cooperative banks, trust companies, branches and agencies in the Philippines of foreign banks, and all other entities performing banking functions in the Philippines².

A covered "deposit" means the unpaid balance of money or its equivalent received by a bank in the usual course of business for which it has given or is obliged to give credit to a commercial, checking, savings, time, or thrift account, or which is evidenced by its certificate of deposit, including trust funds held by the bank². An insured bank's liability for deposits forms its assessment base, calculated without deduction for depositors' indebtedness but subject to statutory deductions, such as certain balances due from another insured bank subject to immediate withdrawal and specified cash items³. This base is used to determine the bank's semiannual assessment at a rate set by the Board of Directors not exceeding one-twelfth of one percent per annum³.

When questioning an act or omission of the PDIC acting as a quasi-judicial agency, an aggrieved party must file a petition for certiorari with the Court of Appeals within the reglementary period prescribed by law, such as the thirty-day period provided under Republic Act No. 10846 (Servo v. Philippine Deposit Insurance Corporation, G.R. No. 234401, 5 December 2019)⁴. If the petition is not timely filed, the assailed ruling lapses into finality and can no longer be disturbed (Servo v. Philippine Deposit Insurance Corporation)⁴.