Some of the country’s major business organizations are calling on the government to return more than P107 billion that the Philippine Deposit Insurance Corp. (PDIC) remitted to the National Treasury, saying the move could erode trust in the financial system.
In a joint statement, the Financial Executives Institute of the Philippines, Institute of Corporate Directors, Makati Business Club, Philippine Chamber of Commerce and Industry, and the Philippine Finance Association warned that the transfer of PDIC’s accumulated resources—booked as 2024 dividend collections from government-owned and controlled corporations—raises red flags about deposit protection.
Concerns Over Independence and System Integrity
The groups emphasized that although the banking sector remains resilient, public confidence is its most important safeguard. They argued that PDIC must remain independent, transparent, and sufficiently capitalized to fulfill its mandate of protecting depositors.
“Returning the remitted funds will reaffirm that PDIC’s resources are reserved exclusively for safeguarding public deposits and upholding confidence in the financial system,” the organizations said.
Officials have clarified that the Deposit Insurance Fund (DIF) remains untouched and that its current ratio to estimated insured deposits stands at 7.83%, above the 6.5% target. However, the business groups stressed that transferring any portion of PDIC’s reserves to the Treasury “raises serious concerns,” noting that the institution exists to protect depositors and maintain stability.
‘Dangerous Fiscal Precedent,’ Groups Warn
The remittance was enabled by a special budget provision under the 2024 Unprogrammed Allocations and is linked to ongoing controversy around flood control projects. Business groups argue that the move blurs the line between fiscal strategy and financial safeguards, setting a “dangerous precedent” and risking reputational damage to regulators and the government at a time of heightened public scrutiny over corruption and fiscal strain.
They urged the Department of Finance and Congress to return the full amount to PDIC and revisit its treatment in the 2026 national budget. They also called for measures to ring-fence the DIF from future remittances and require transparent reporting on PDIC’s ability to respond to systemic shocks.
“We urge policymakers, as they finalize the 2026 National Budget, to restore the transferred funds and strengthen PDIC’s role as the nation’s last line of defense for depositors,” the statement read.
