State-run Philippine Deposit Insurance Corp. (PDIC) is seeking to increase insurance coverage for bank accounts that Filipinos rely on for daily living and long-term security—such as payroll and retirement accounts—to cushion depositors against losses during bank failures.

The proposal is among five major reforms the PDIC is pushing in Congress, a year after doubling its maximum deposit insurance coverage (MDIC) to ₱1 million from ₱500,000.

“We are seeking authority to provide higher insurance coverage for accounts with high social and economic value, such as payroll, retirement, and settlement accounts, to reduce disruption when a bank fails,” PDIC President and Chief Executive Officer Roberto B. Tan said during an Aug. 5 press briefing hosted by the Philippine Information Agency.

Tan said the PDIC is building on reforms initiated in 2025 to ensure the deposit insurance system is “more responsive, more resilient, and future-ready” amid a changing financial landscape.

PDIC Vice President Jose G. Villaret Jr., who heads the corporate affairs group, noted that bank deposits grew by 9.8 percent in the first quarter following the higher MDIC rollout.

PDIC data showed insured deposits reached ₱5.29 trillion in the first quarter of 2026, accounting for nearly a quarter of the country's ₱22.04 trillion total bank deposits.

Villaret added that depositors with balances above ₱1 million drove the bulk of overall deposit growth. Prior to the MDIC increase, deposit growth was nearly half its current pace.

“Thrift and rural banks posted the most notable gains in large deposit balances, reflecting growing depositor confidence across the banking sector,” the state insurer said.

Beyond banking institutions, Tan said the agency wants to expand coverage to eligible deposits in non-bank financial institutions (NBFIs) and cooperatives. The move would protect institutions that currently accept deposits without PDIC coverage.

Maria Antonette Brillantes-Bolivar, PDIC general counsel, explained on the sidelines of the briefing that the agency plans to establish separate insurance funds for non-banks and cooperatives to protect the existing fund, which remains “exclusively for banks.”

She added that the PDIC is evaluating industry readiness ahead of a proposed three-year transition period.

The PDIC’s five-point legislative agenda also targets operational efficiency to streamline legal and administrative processes that delay reimbursements.

“We want to ensure faster payment of deposit insurance claims by enabling quicker verification of deposit records and removing unnecessary legal barriers that delay access to insured deposits,” Tan said.

Additionally, the PDIC is seeking authority to issue temporary blanket guarantees during periods of severe economic instability to preserve public confidence and prevent bank runs.

Despite the legislative push, Tan noted that the banking sector remained sound over the first half of the year: “It’s been healthy and improving for years—and the indicators show the banking system is in sound condition.”

Finally, the insurer aims to reinforce its institutional capacity and update its framework for resolving insolvent banks.

“We aim to strengthen our liquidation framework and the PDIC itself so we can resolve failed banks more efficiently and deliver on our mandate more effectively,” Tan said.

Stakeholder consultations are underway to refine the proposals. In support of the agenda, Senator Vicente C. Sotto III filed Senate Bill No. 1667 to amend the PDIC Charter and bolster its regulatory authorities.

The PDIC is also developing a Risk-Based Assessment System (RBAS) to align deposit premium rates with individual bank risk profiles, replacing its flat assessment rate of one-fifth of one percent

Brillantes-Bolivar, who heads the RBAS working group, said the framework promotes fairness while keeping the MDIC at ₱1 million per depositor, per bank.

Higher-risk institutions would pay higher premiums, while banks with stronger risk profiles would qualify for lower assessment rates.

Developed with technical assistance from the World Bank Group and in consultation with the Bangko Sentral ng Pilipinas and banking industry groups, the RBAS will evaluate financial and supervisory indicators to determine composite risk scores and corresponding premium rates.