The Philippine Deposit Insurance Corporation (PDIC) recently issued Regulatory Issuance (RI) 2009-01 promulgating rules and regulations on the advertisement of membership in the PDIC and the new maximum deposit insurance coverage (MDIC) of P500,000.

PDIC President Jose C. Nograles said that the draft RI was exposed to various industry groups by way of consultative dialogues attended by representatives from the Bankers Association of the Philippines (BAP), Chamber of Thrift Banks (CTB), Rural Bankers Association of the Philippines (RBAP) and Bank Marketing Association of the Philippines (BMAP).

Under RI 2009-01, all member-banks are required to display in the bank premises of head offices and branches, and automated teller machines the official PDIC signs in the form of decals and standees. These indicate the official insurance statement with the PDIC emblem and the new MDIC.

The official statement, "Member: PDIC. Maximum Deposit Insurance for Each Depositor P500,000", is likewise required in general advertisements of banks as well as advertisements relating to deposit products (such as those evidenced by passbooks and certificates of time deposit) and services appearing in print ads, TV, film strips and websites. The abridged version of the official insurance statement, “Member: PDIC”, is required for radio advertisements relating to deposit products and services.

At the same time, the RI strictly provides that member-banks shall advertise PDIC’s deposit insurance protection only with reference to legitimate deposits held by bona fide depositors. Furthermore, RI 2009-01 prohibits the use of the PDIC insurance statement in advertisements pertaining to trust business or trust department products or services, safekeeping box business or services, real estate business or services, armored car services, securities business, travel department business, loan services, trade financing, and credit card services, except when the acquisition of a credit card requires the maintenance of a deposit account. The insurance statement shall also be excluded in bank advertisements promoting human values and those pertaining to the recruitment of personnel, except when these advertisements are also included in another advertisement announcing the opening of a new bank branch or office.

Violation of RI 2009-01 is subject to a penalty of not more than P1,000.00 for each day the violation subsists.

President Nograles said that PDIC is slating more consultative industry dialogues to get inputs for rules and regulations to be issued in support of Republic Act 9576 or the law that amended the PDIC Charter. In the pipeline are those relating to splitting of deposits, beneficial ownership and use of deposit insurance coverage in marketing deposit products.