PDIC wants govt to shoulder higher deposit insurance coverage

Philippine Deposit Insurance Corp. is in favor of proposals to increase the maximum deposit insurance coverage to P1 million for a three-year period without higher charges, provided the national government shoulders the cost and its capital increased by P24 billion.

Speaking at the accepted associates affair of the Chamber of Austerity Banks yesterday, PDIC admiral Jose Nograles said the access in the drop allowance advantage was agnate to what had been done in added countries in the face of the all-around banking meltdown.

Nograles said while the Philippines had not been decidedly afflicted by the meltdown, the country was bigger off advancing for it now afore the appulse of the crisis was acquainted in full. He said a college drop allowance advantage was a confidence-building measure.

Both houses of Congress are apperception a accessible access in the country’s best drop allowance advantage to P500,000 to P1 actor from the accepted P250,000.

Nograles said accretion the drop allowance to P1 actor would be abundant to awning 98.2 percent of deposits in austerity banks.

The average deposit account in a thrift bank is estimated at P119,000 or well within the insurance coverage. He said higher insurance coverage would entice people to keep their money within the Philippines, instead in overseas accounts.