00:00Tomorrow, 1 million pesos of insurance will be effective for all deposits in the bank starting from our half a million pesos.
00:09This is what Rod Laguzat reported.
00:14For the depositors in the bank, the amount of insurance in your deposits will increase.
00:19Because starting tomorrow, the maximum deposit insurance coverage or MDIC for each depositor in each bank
00:27according to the Philippine Deposit Insurance Corporation or PDIC.
00:31This is double compared to the current 500,000 pesos of MDIC,
00:34where the last increase was in 2009 or 16 years ago.
00:40This includes savings, time and demand deposits, as well as foreign currency deposits in the Philippines.
00:46According to the PDIC, this will help to increase the confidence of the public in the banking system
00:52and to encourage them to deposit money in the bank.
00:55The doubled amount of the MDIC spells a welcome development as this provides enhanced protection
01:01not only to the depositing public, but the whole Philippine banking system,
01:07lessening the likelihood of panic-driven withdrawals when a crisis occurs.
01:13According to Tan, this will help financial stability and to strengthen the economy.
01:18Compared to the past years, the board of directors of PDIC now has the ability to adjust the deposit coverage
01:24where every 3 years, it will be under review and will be adjusted if necessary,
01:29just like the effect of inflation and others.
01:31The PDIC also explains that the insurance will only be effective
01:34if a bank is closed by the Central Bank of the Philippines.
01:37The agency has an advice to the public when it comes to depositing money in the bank.
01:42For any depositor, you should choose your bank that you think your money will be well kept or maintained, managed.
01:51He also gives a high interest rate and a lot of privies,
01:56which is hard for a bank to recover.
01:58That's why you should be careful and watch out.
02:01Rod Laguzad for Pambansang TV in Bagong, Philippines.
