January 16, 2018

The process of Assessment of Member-Banks (AMB), one of the frontline services of the Philippine Deposit Insurance Corporation (PDIC), continued to be certified under ISO 9001:2008 standards following the first surveillance ISO audit conducted by TÜV Rheinland Philippines, Inc. (TÜV Rheinland) on December 4-5, 2017. This affirms that PDIC has established and continues to maintain an effective quality management system to ensure compliance with its policy and objectives. The certificate for AMB under ISO 9001:2008 standards was awarded in January 2017.

TÜV Rheinland’s audit revealed that PDIC had zero non-conforming practices. The certifying body also recommended PDIC’s maintenance of the certification for its AMB.

PDIC provides a maximum deposit insurance coverage of PHP500,000.00 per depositor per bank. As such, PDIC is mandated to prudently manage and build up the level of the Deposit Insurance Fund (DIF), the main fund source for payment of deposit insurance claims in case of bank closures. Member-banks are currently assessed the annual flat rate of 1/5 of one percent of their total deposit liabilities and the assessment collected by PDIC semi-annually (every January and July) from member-banks form part of, and help continuously build up the DIF. As of end-September 2017, 592 member-banks with combined total accounts of 56.5 million for total deposits of PHP11.3 trillion are assessed by PDIC. As of end-September 2017, the DIF is 6.4% of total estimated insured deposits, higher than the international benchmark of 5.5%.

The PDIC’s recent recognition as top Government-Owned or -Controlled Corporation (GOCC) in governance, an award given by the Governance Commission for GOCCs and the Institute of Corporate Directors, was among the positive findings cited by TÜV Rheinland. PDIC’s recognition as an active partner of the Philippine Postal Corporation in providing outright payment to eligible depositors without the need to file deposit insurance claims; and as an ISO-certified organization by the Government Quality Management Committee for its frontline processes were also positive findings noted by the certifying body.

TÜV Rheinland Group, founded in 1872, is a global provider of technical, safety, and certification services with headquarters in Germany and operates in 520 offices in 69 countries.

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The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is PHP500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.

PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.