Benise Balaoing

Article (news)

Philippine Deposit Insurance Corporation

ABS-CBN News

MANILA -- Business groups have asked the government to return P107 billion in funds to the Philippine Deposit Insurance Corporation (PDIC). Earlier this year, the PDIC said it deposited more than P107 billion worth of its idle funds to the Bureau of the Treasury to support priority government projects.<div><a href="https://www.abs-cbn.com/news/business/2025/1/13/pdic-over-p107-billion-idle-funds-remitted-to-treasury-2126" rel="noopener noreferrer" target="_blank">PDIC: Over P107 billion idle funds remitted to Treasury</a></div>Back then, the PDIC said Philippine deposit insurance levels were &quot;consistent with international standards” despite the multi-billion peso remittance.Business groups, however, are now asking the government to return the P107 billion, despite the deposit insurance fund&#x27;s ratio to estimated deposits remaining above target.&quot;The act of transferring any part of PDIC’s reserves to the Treasury raises serious concerns,&quot; the business groups said.The Makati Business Club (MBC), Philippine Chamber of Commerce and Industry (PDIC), Financial Executives of the Philippines (FINEX), Institute of Corporate Directors (ICD), and Philippine Finance Association (PFA) said the fund transfer sets a dangerous fiscal precedent.The groups said this move blurs the line between a fiscal instrument and a financial safety net, and creates uncertainty about the independence and integrity of the deposit insurance system. The groups also said this risks the reputation of government, regulators, and the banking sector at a time when public trust is already strained by corruption scandals.Aside from returning the P107 billion and restoring it in the 2026 budget as part of the PDIC’s balance sheet, the business groups also asked the government to exclude the deposit insurance fund from future dividend collections and fiscal transfers.They also called on the Department of Finance to publish transparent disclosures on the current and projected capacity of the PDIC fund to respond to potential systemic shocks. The groups noted that, when state health insurer Philippine Health Insurance Corporation (PhilHealth) made a similar fund transfer to the government, the <a href="https://www.abs-cbn.com/news/nation/2025/9/20/philhealth-s-p60-b-excess-funds-reverted-to-treasury-to-be-returned-marcos-jr-1305" rel="noopener noreferrer" target="_blank">P60 billion</a> excess funds were eventually returned.&quot;The same principle should apply to the PDIC. Funds accumulated to insure the savings of Filipino depositors must remain dedicated to their original purpose.&quot;&quot;Both PhilHealth and PDIC exist to protect the public in moments of vulnerability,&quot; the groups said.<div><a href="https://www.abs-cbn.com/news/business/2025/4/3/philhealth-admits-it-lost-contributors-trust-after-p89-9-b-fund-transfer-1845" rel="noopener noreferrer" target="_blank">PhilHealth admits it lost contributors&#x27; trust after P89.9-B fund transfer</a></div>&quot;The Philippine banking system today stands on solid ground. It boasts strong capitalization, improving asset quality, and robust regulatory oversight under the Bangko Sentral ng Pilipinas (BSP),&quot; the groups said.&quot;However, public confidence remains its most valuable asset,&quot; they said.&quot;Returning the remitted funds will reaffirm that the resources of the PDIC are reserved exclusively for their intended purpose, to safeguard the savings of the Filipino people,&quot; they added.

Business groups have asked the government to return P107 billion in funds to the Philippine Deposit Insurance Corporation (PDIC).

Business groups have asked the government to return P107 billion in funds to the Philippine Deposit Insurance Corporation (PDIC).

Business groups urge gov't to return P107 billion to PDIC

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Business groups urge gov't to return P107 billion to PDIC

Benise Balaoing,

ABS-CBN News

Published Nov 19, 2025 12:21 PM PHT

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Philippine Deposit Insurance Corporation

PDIC

National Treasury

Bureau of the Treasury

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