D. Deposit Insurance (RA 3591, as amended mainly by RA 11840)

Deposit Insurance under RA 3591

The Philippine Deposit Insurance Corporation is created to insure the deposits of all banks entitled to the benefits of insurance under Republic Act No. 3591 ¹. Under the statute, an "insured bank" refers to any bank whose deposits are insured in accordance with the Act². A "deposit" is defined as the unpaid balance of money or its equivalent received by a bank in the usual course of business and 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 such bank².

The assessment rate for insured banks is determined by the Board of Directors, provided that it shall not exceed one-twelfth of one percent per annum³. The semiannual assessment paid by each insured bank corresponds to one-half of the assessment rate multiplied by the assessment base, which consists of the bank's deposit liability without deduction for depositor indebtedness, subject to specific statutory deductions such as certain deposit balances due from other insured banks and qualified cash items³.

In seeking judicial review of an act or omission of the Corporation acting as a quasi-judicial agency, a petition for certiorari must be timely filed with the Court of Appeals within the reglementary period prescribed by law (Servo v. Philippine Deposit Insurance Corporation, G.R. No. 234401, 5 December 2019)⁴. If the petition is filed beyond the prescribed period, the assailed ruling lapses into finality (Servo)⁴.