Press Release
October 16, 2008

CHIZ BILL DOUBLES MAXIMUM DEPOSIT INSURANCE COVERAGE

As the government hammered out an agreement for a $10 Billion crisis fund package among its ASEAN neighbors, Senator Chiz Escudero filed a bill to insulate depositors at the home front.

The senator file Senate Bill (SB) No. 2678 which seeks to increase the maximum deposit insurance coverage per depositor and investor from P250, 000.00 to P500, 000.00.

The bill amends the charter of the Philippine Deposit Insurance Corporation (PDIC) as the government institution concerned.

In doubling the statutory limitation for the maximum deposit insurance coverage, Escudero, Chairman of the Senate Ways and Means Committee said the bill seeks to strengthen the very foundation of the banking system and continue to foster confidence among investors and depositors in the country.

Escudero said SB No. will provide the needed requirement to maintain and promote stability in the country's banking sector amid the current global economic melt-down.

"The current global financial crisis, now being dubbed as the great financial depression in modern time, if not even worse, requires appropriate attention and prompt consideration" Escudero said.

Although the government and banking sectors consistently claim that the Philippine banking system is showing strength and stability in the face of the global financial crisis, the senator said there is still a need to ensure public trust and confidence in banking and investment if only to overcome the worst financial debacle in eight decades.

"This bill benefits not only individual depositors but the banking sector and officials as well. We might not need and may not afford any bailout package at the moment, but this bill provides the needed requirement to maintain and promote stability in the banking sector".

With PDIC supporting the doubling of the maximum insurance coverage proposal, it projects 97.2% coverage of all deposit accounts in the banking system compared with 95.1 percent in the present maximum coverage.

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