THE PHILIPPINE Deposit Insurance Corp. (PDIC), the central bank’s co-regulator, is reviewing its rules on banks’ record-keeping as it steps up its oversight on the domestic banking industry.

The deposit insurer said strict rules on the recording of bank transactions are needed to ensure the safety of deposits amid a prolonged market turmoil that has weighed on depositors’ confidence.

The move would also allow PDIC, which provides a deposit insurance of up to P250,000, to process depositors’ claims in an orderly fashion in the event of a bank failure.

"While the review was started before the US financial crisis, the activity addresses some of the some lessons learned from the crisis such as the importance of regulatory vigilance and transparency," PDIC President Jose C. Nograles said in a statement.

The Commission on Audit, in a report, said doubts on the validity of claims have resulted in unpaid claims for insured deposits of P438.62 million last year, representing more than 11,000 accounts. (Business World Online - October 8, 2008