New Bank Deposit Insurance to take effect June 1, 2009

The new bank deposit insurance of 500 thousand pesos will take effect on Monday, June 1, 2009.

In last sunday's newspaper (May 17, 2009), one full page was dedicated to Republic Act No. 9576 (R.A. 9576), an act increasing the maximum deposit insurance coverage, otherwise knows as the PDIC charter.  The following public advisory can be found on the same page.
President Gloria Macapagal-Arroyo signed into law Republic Act No. 9576 that amended the Charter of the Philippine Deposit Insurance Corporation (PDIC).

RA 9576 will take effect on Monday, June 1, 2009.

Upon the effectivity of the law, the Maximum Deposit Insurance Coverage shall be increased from P250,000 to P500,000 per deposition.  PDIC is also given the following powers under the new law:

1. Authority to exclude certain deposit accounts and transactions from the coverage of deposit insurance.
2. Authority to conduct special bank examinations.
3. Authority to inquire into or examine deposit accounts under certain condition.
4. Authority to issue bonds and other debt issuance with sovereign guarantee.

The period within which splitting of deposit accounts is prohibited was likewise increased from 30 days to 120 days before bank holiday or closure.

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