1. Definition of Insured Deposit

Deposit and Insured Deposit Liabilities under RA 3591

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 its certificate of deposit, and trust funds held by such bank whether retained or deposited in any department of such bank or deposited in another bank, together with such other obligations of a bank as the Board of Directors shall find and prescribe¹.

An insured bank refers to any bank the deposits of which are insured in accordance with the provisions of the law¹. Any banking institution engaged in the business of receiving deposits may insure its deposit liabilities with the Philippine Deposit Insurance Corporation, provided that before approving the bank's application, the Board of Directors determines, based on a thorough examination, that the bank's assets in excess of capital requirements are adequate to meet its liabilities to depositors and other creditors².

For purposes of assessment, the assessment base of an insured bank corresponds to the amount of its liability for deposits as defined under the law, without deduction for indebtedness of depositors, subject only to statutory exclusions such as certain interbank deposit balances and process-of-collection cash items³.