The Philippine Deposit Insurance Corporation (PDIC) transfers a significant amount of funds to the national treasury, raising questions about the adequacy of its Deposit Insurance Fund (DIF). Experts weigh in on the potential impact on banking sector stability.
The Philippine Deposit Insurance Corporation ( PDIC ) recently transferred P107.23 billion of its funds to the national treasury to support government projects. This move, while ensuring compliance with the 2024 General Appropriations Act, has raised concerns among economists about the adequacy of the PDIC 's Deposit Insurance Fund (DIF).
PDIC president and chief executive officer Roberto Tan emphasized that the DIF remains robust, exceeding P250 billion, and capable of covering potential risks within the banking system. He further clarified that this transfer was a one-time event and that the PDIC's future financial obligations primarily involve the annual remittance of dividends to the national government.However, economist JC Punongbayan, drawing parallels with a similar transfer of P87 billion from the Philippine Health Insurance Corporation (PhilHealth), expressed concerns about the potential impact on the banking sector's stability. He stressed that funds within the DIF are not surplus assets and should not be readily accessed. Punongbayan cautioned that such withdrawals could undermine the overall health and resilience of the banking system. Despite these concerns, the PDIC maintains that the transfer was conducted in accordance with both legal requirements and expert legal opinion. Looking ahead, the PDIC plans to increase the maximum deposit insurance coverage, currently at P500,000 per depositor per bank, to adjust for inflation and bolster financial security for depositors. This move, however, requires approval from the PDIC board, and the exact new insured amount remains to be determined.
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