Press Release
October 19, 2008

To strengthen banks amid Global Financial Turbulence
ANGARA BATS FOR INCREASE IN DEPOSIT INSURANCE COVERAGE

Senator Edgardo J. Angara today filed a bill which seeks to increase the maximum deposit insurance coverage of Philippine Deposit Insurance Corporation (PDIC) from P250,000 to P500,000 this is to promote enhanced depositor protection, depositor confidence and a stronger banking system.

"Financial reforms must be sustained in order to cushion the perceived impacts of the Global Financial Turbulence. Our purpose is to allay fears of the investing public and to restore confidence in the Philippine banking system and the Philippine economy," said Angara, who chairs Senate Committee on Banks, Financial Institutions and Currencies.

He added, "This can be done by instituting protective or remedial measures to ensure that the Philippine financial market is resilient enough to weather the crisis. Financial reform in the PDIC is very timely since it aims to safeguard the interest of the depositing public."

The Philippine Deposit and Insurance Corporation (PDIC) is a vital institution that acts as a deposit insurer, statutory receiver and co-regulator of banks in order to promote the interest of the depositing public and thereby contributing to the promotion of financial stability in the market.

R.A. 3591, as amended, otherwise known as the "Charter of the Philippine Deposit Insurance Corporation" guides the operations of PDIC and caps the maximum deposit insurance coverage (MDIC) at P250,000. Increasing the limit to P500,000 will boost depositors' confidence and protection amid the turmoil created by the Global Financial Turbulence.

"As we know the Government is working with other countries along with World Bank (WB) and International Monetary Fund (IMF) on a multilateral level. Now for our part, let us do our homework and give our banking system a much needed lift in order to weather this financial turbulence," said Angara.

Angara filed S.B 2687 which seeks to amend the charter of PDIC in order to increase its maximum deposit insurance coverage from P250,000 to P500,000.

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