PDIC strengthens support for rural banks’ resilience

STRENGTHENING RURAL BANKS’ RESILIENCE. Philippine Deposit Insurance Corporation (PDIC) General Counsel Maria Antonette Brillantes-Bolivar shares how the PDIC continues to create opportunities and develop initiatives to further strengthen the resilience of rural banks in the face of challenges in the banking landscape. Atty. Bolivar was a resource person during the recent Annual Management Conference of the Confederation of Central Luzon Rural Banks held in Baguio City.

By Francis Allan L. Angelo

The Philippine Deposit Insurance Corporation (PDIC) is stepping up its efforts to bolster the resilience of rural banks, aiming to enhance depositor confidence and financial stability.

This commitment was highlighted during the recent Annual Management Conference of the Confederation of Central Luzon Rural Bankers (CCLRB) in Baguio City.

PDIC General Counsel Atty. Maria Antonette Brillantes-Bolivar outlined the state deposit insurer’s initiatives to support rural banks in navigating the dynamic banking landscape.

A key focus for PDIC is enhancing depositor protection mechanisms, including reviewing and potentially adjusting current deposit insurance coverage to benefit more depositors.

“The depositor protection provided by PDIC assures bank depositors that their money in banks is insured up to the coverage limit. The increase in coverage will bolster our shared goal of promoting saving in banks, and in building confidence in the banking system and thus, create opportunities and build resilience for our banks,” Atty. Bolivar explained.

Recognizing the challenges faced by rural banks, PDIC is exploring ways to offer targeted support and assistance. This includes capacity-building initiatives and digital transformation projects aimed at helping rural banks adapt to changing market conditions.

In late 2024, PDIC will launch a case study-based capacity-building program focused on deposit record-keeping and operations.

Additionally, PDIC plans to introduce a secure online reporting system to streamline financial data submission for insured banks.

By 2025, this system will be integrated into PDIC’s Assessment and RI Monitoring System, facilitating seamless reporting and offering additional online payment options for assessments.

To reduce the regulatory burden on member banks, PDIC has revised rules on record-keeping, eliminating the requirement to submit the Financial Reporting Package and the Capital Adequacy Ratio Report, which are also required by the Bangko Sentral ng Pilipinas (BSP). An agreement with the BSP on information exchange further aims to minimize regulatory burdens and improve efficiency through joint bank examinations.

In its efforts to contribute to financial stability, PDIC is also focusing on outreach and educational campaigns.

The “Maniguro, Magbangko, Umasenso” campaign promotes financial advancement through saving in banks and supports financial inclusion by highlighting the ease of opening a Basic Deposit Account.

This year, PDIC will launch the “Be an Empowered Saver Handbook” (BESH), a practical guidebook outlining the Rights of Depositors. BESH aims to educate bank savers on their rights from account opening to maintaining deposits and navigating bank closures.

Atty. Bolivar emphasized PDIC’s commitment to deepening engagement with rural banks and implementing programs to enhance their resilience, ultimately supporting greater financial stability in the sector.

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