The Philippine Deposit Insurance Corp. (PDIC) remitted P107.23 billion to the national treasury, aligning with the 2024 General Appropriations Act and the Office of the Government Corporate Counsel's opinion.

The funds will support government infrastructure and social programs, including those for disaster relief, rural electrification, and foreign-assisted projects.

PDIC president Roberto B. Tan assured the public that the Deposit Insurance Fund (DIF) remains adequate to cover risks in the banking system, even after the remittance.

"The DIF continues to be maintained within the target level set by its Board of Directors based on international best practices," Tan said in a statement.

The current DIF level stands at P202.85 billion, or 5.8 percent of the country's estimated insured deposits, falling within the target range of 5 to 8 percent set by the PDIC Board.

The International Association of Deposit Insurers recommends a target reserve ratio between 2 and 5 percent of insured deposits, with variations depending on a country's risks and banking environment.

The PDIC remitted P107.23 billion in compliance with the Congressional mandate under the General Appropriations Act of 2024 and strictly in accordance with the opinion rendered by the Office of the Government Corporate Counsel (OGCC).

PDIC’s multibillion-peso remittance to the national government went to projects aimed at spurring economic activities, which are envisioned to lead to higher deposits in banks and growth of financial institutions to provide more financial products and services to Filipinos nationwide.

These include major infrastructure and social programs such as the maintenance, repair, and rehabilitation of major infrastructure facilities; the Protective Services for Individuals and Families in Difficult Circumstances/Assistance to Individuals in Crisis Situations; the Philippine Food Stamp Program; and various projects to advance the government’s disaster-related infrastructure projects; and rural electrification efforts through the Financial Subsidy for the Purchase of Photovoltaic Mainstreaming (Solar Home System).

Additionally, the unutilized funds were used to support counterpart financing for foreign-assisted projects, including the Panay-Guimaras-Negros Island Bridges; the Metro Manila Subway Project; the Philippine Multi-Sectoral Nutrition Project; the Mindanao Inclusive Agriculture Development Project; the Cebu-Mactan Bridge and Coastal Road Construction Project; the North-South Commuter Railway System; the Support to Parcelization of Lands for Individual Titling Project; the Teacher Effectiveness and Competencies Enhancement Project; and the Philippine Fisheries and Coastal Resiliency Project, among others.

These projects are envisioned to drive economic growth by generating employment, boosting incomes and reducing poverty, thus creating a positive multiplier for society.

The IADI is a global standard-setting body dedicated to enhancing the effectiveness of deposit insurance systems worldwide. Established in 2002 and headquartered at the Bank for International Settlements in Basel, Switzerland, the association promotes financial stability by developing international standards and providing guidance for deposit insurance practices.