DEPOSITS in the banking system recorded strong growth after one year of the increase of the maximum deposit insurance coverage (MDIC) to P1 million per depositor, per bank that took effect on March 15, 2025.

This was reported by the Philippine Deposit Insurance Corporation (PDIC) during the conduct of its PDIC 101: Understanding Deposit Insurance, held in partnership with the Philippine Information Agency (PIA) at the PIA Auditorium on August 5, 2026.

The PDIC, through Vice President Jose G. Villaret, Jr. (Corporate Affairs Group), shared that bank deposits grew by 9.8 percent as of end March 2026 following the implementation of the higher MDIC in the same period last year.

This marks a significant increase from the 5.3 percent growth recorded in the same period in 2024, before the higher coverage took effect.

The strongest growth came from depositors with balances of more than P1 million, whose deposits increased by 10.3 percent, nearly double the 5.4 percent growth recorded before the MDIC was adjusted.

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

“The increase in deposit insurance coverage has reinforced public trust in our banking system and encouraged more people to keep their savings in banks,” Mr. Villaret said.

The PDIC also noted that the Philippines’ deposit insurance coverage remains among the strongest in the ASEAN region.

Based on the ratio of deposit insurance coverage to the 2025 Gross Domestic product (GDP) per capita using the data from the World Bank, the Philippines ranks among the top three ASEAN economies, with a ratio of 4.2, following Malaysia and Indonesia, demonstrating that the country’s deposit insurance system is aligned with regional and international standards.

The adjustment in the MDIC, or the maximum amount of depositor’s money in an insured bank guaranteed as safe by the PDIC, was the first in 16 years.

The increase was made to keep depositor protection responsive to inflation, aligned with global best practices, and meaningful for the evolving needs of depositors. It also marked the first time the PDIC Board of Directors exercised its authority under the PDIC Charter to revise the MDIC, following amendments to the deposit insurance law in July 2022. ▲