3. Splitting of Deposits

Deposit Insurance and Judicial Review of PDIC Actions

The Philippine Deposit Insurance Corporation (PDIC) was established to insure the deposits of all qualifying banks and to exercise designated statutory powers¹. Under Republic Act No. 3591, a "deposit" is defined as 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 a certificate of deposit, including trust funds held by such bank². An insured bank is any bank whose deposits are insured in accordance with the statutory provisions, and banking institutions may insure their deposit liabilities upon the PDIC Board of Directors' determination that their assets are adequate to meet liabilities²,³.

With respect to challenging actions and decisions of the PDIC, strict adherence to reglementary periods is required⁴. In Servo v. Philippine Deposit Insurance Corporation, G.R. No. 234401, 5 December 2019, the Supreme Court ruled that a petition for certiorari involving an act or omission of a quasi-judicial agency must be filed with the Court of Appeals within the prescribed period; otherwise, the assailed ruling lapses into finality⁴. In Servo, because the petition was filed beyond the 30-day reglementary period provided under Republic Act No. 10846, the ruling had become final and executory, warranting dismissal of the petition⁴.