State-run Philippine Deposit Insurance Corp. (PDIC) said Wednesday that Islamic banks (IBs) and Islamic banking units (IBUs) are now covered by the country’s deposit insurance system.
The PDIC’s Bulletin 2024-09 follows amendments to Republic Act No. 3591, also known as the PDIC Charter.
Under the new framework, deposits in IBs and IBUs are insured in the same way as conventional deposits, up to a maximum deposit insurance coverage (MDIC) of P1 million per depositor, per bank.
The new MDIC took effect on March 15, 2025. As of the end of December 2024, there were 12,514 Islamic deposit accounts in the Philippine banking system.
“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,” PDIC president and chief executive Roberto Tan said.
Tan said this aligns with the government’s goal of promoting financial inclusion and strengthening the Islamic banking sector.
IBs and IBUs offer financial products and services, including deposits, that comply with Shari’ah Law, focusing on ethical financing, risk-sharing and socially responsible practices.
