The Market Monitor Minding the Nation's Business
The Philippine Deposit Insurance Corporation (PDIC) has officially expanded its deposit insurance coverage to include Islamic banks (IBs) and Islamic banking units (IBUs), ensuring that depositors in these institutions enjoy the same level of protection as those in conventional banks.
In a statement released Wednesday, PDIC confirmed that Islamic bank deposits are now insured up to the Maximum Deposit Insurance Coverage (MDIC) of P1 million per depositor, per bank.
“The expansion of deposit insurance to include Islamic deposits guarantees that depositors of Islamic banks have the same level of protection as those of conventional banks, thereby fostering confidence in the Islamic banking system,” said PDIC President and CEO Roberto Tan.
“This aligns with the national government’s pursuit of promoting financial inclusion and strengthening of the Islamic banking sector in the country, as this encourages more individuals and businesses to save in banks,” he added.
As of end-December 2023, a total of 12,514 Islamic deposit accounts were recorded in the Philippine banking system.
IBs and IBUs operate based on Shari’ah principles, offering financial products and services rooted in ethical financing, risk-sharing, and socially responsible practices.