A chorus of influential business organizations is urgently calling on the Department of Finance and Congress to reinstate funds recently transferred from the Philippine Deposit Insurance Corp. (PDIC) back to the national Treasury. These groups argue that these resources are vital, existing solely to protect the hard-earned savings of Filipino citizens.
The concern centers around P107 billion, categorized as “unrestricted retained earnings” and included in the government’s dividend collection from state-owned corporations this year. This move mirrors a similar action taken last year with the Philippine Health Insurance Corp. (PhilHealth), which remitted P60 billion in excess funds under the same policy.
A glimmer of hope emerged in September when a former Finance Secretary indicated plans to restore PhilHealth’s remitted funds within the proposed 2026 national budget. Business leaders now insist the same logic must apply to the PDIC, emphasizing that funds specifically built to safeguard depositor savings should remain dedicated to that crucial purpose.
These organizations are advocating for a “ring-fence” around the deposit insurance fund (DIF), effectively shielding it from future dividend grabs and fiscal transfers. While assurances have been given that the DIF itself remains untouched, currently exceeding the 6.5% target with a 7.83% ratio to insured deposits, the very act of transferring PDIC reserves is deeply unsettling.
Transparency is paramount, the groups assert. They are urging the PDIC to publicly disclose detailed information regarding the fund’s current strength and its projected ability to weather potential systemic financial crises. This open accounting would bolster public trust and demonstrate preparedness.
The Philippine banking sector has proven its strength and stability, even amidst economic challenges. However, these business leaders recognize that unwavering public confidence is its most valuable asset. Maintaining an independent, transparent, and adequately capitalized PDIC is therefore essential to fulfilling its core mission: protecting the financial security of the Filipino people.
