President Gloria Macapagal Arroyo recently signed into law the Republic Act No. 9576 that aimed to increase the minimum deposit coverage provided by the Philippine Deposit Insurance corporation (PDIC) from its maximum deposit of P250,000 to P500,000.

PGMA signed it yesterday, April 29, 2009 during the Philippine Economic Zone Authority (PEZA) Investor’s Recognition day at the World Trade Center, Pasay City.

The new law was created to encourage depositors to keep their deposits in the bank to be protected in the midst of economic crisis. The new law will also keep the PDIC fiannciall and operationally strong to fulfill its task and mandate.

the law also gives regulatory and administravtive authority to PDIC to monitor and prescribed which deposit products (such as bonds, trust accounts, securities, fictitious accounts, etc.) covered by the insurance and trhe government which the PDIC provides.

The PDIC has now the authority to conduct investigations and examinations of banks and may even inquire deposit accounts to minimize the risk to the deposit Insurance Fund (DIF).

More enhanced leagl protection is also given to the directors, officers, employees and agents of PDIC from any unfounded and malicious prosecution arising from their performance and duties.

The PDIC also has given authority to reorganize their organizational structure to conform with the new law.