PDIC Act

Philippine Deposit Insurance Act is also known as R.A ___

• 3590

• 3591

• 3592

• 3593

What is the main purpose of PDIC Law?

• To promote financial literacy among depositors.
• To regulate interest rates for banks.
• To oversee bank mergers and acquisitions.
• To promote and safeguard the interests of the depositing public by providing insurance coverage on all insured deposits

PDIC has the authority to help depositors have quicker access to their insured deposits should: (Select the exception)

• The Bank Close 

• Resolve problem banks while still close

• Hasten the liquidation process for closed banks 

• Mete out stiffer sanctions, and penalties against those who engage in unsafe, and unsound banking practices 

The new law does away with the __-day receivership period, and allows PDIC to proceed directly to liquidation 

• 60
• 30
• 45
• 90

What are the functions of PDIC? (Select the exception)

• Deposit Insurer

• Co-regulator of Banks

• Receiver, and Liquidator of Closed Banks

• Formation of Insurance Coverage Banks

Under PDIC Law, what is risk insured against?

• Bank Closure

• Financial losses from unforeseen events.

• Protection against market competition.
• Coverage for routine maintenance costs.

What is the Liability of the PDIC for Insured Deposits? 

• The PDIC covers insured deposits up to PHP 1,000,000 per depositor, per bank.
• The PDIC is liable for any valid deposits placed in a bank that is covered by PDIC Insurance

• The PDIC guarantees insured deposits only for corporate accounts.
• The PDIC is liable for insured deposits. as long as there is a certificate documenting the insurance

The Corporation (PDIC) shall not pay deposit insurance for the following accounts or transactions (Select the exception)

• Investment products such as bonds and securities, trust accounts, and other similar instruments 

• Deposit accounts or transactions which are fictitious or fraudulent 

• Deposit accounts or transactions constituting, and/or emanating from, safe and sound banking practice 

• Deposits that are determined to be the proceeds of an unlawful activity 

Does deposits located outside the Philippines covered by the PDIC?

• Deposits outside the Philippines are partially covered by the PDIC.
• Only certain deposits outside the Philippines are covered by the PDIC.
• Yes, deposits located outside the Philippines are covered by the PDIC.
• No, deposits located outside the Philippines are not covered by the PDIC.

What is Insured Deposit under PDIC Law?

• Insured Deposit is the amount covered by the PDIC for depositors in case of bank failure, up to a limit of PHP 500,000.
• Insured Deposit is a type of insurance policy for personal loans.
• Insured Deposit is the amount covered by the PDIC for depositors in case of bank failure, up to a limit of PHP 1,000,000

• Insured Deposit refers to the interest earned on savings accounts.