This development follows amendments to Republic Act No. 3591, also known as the PDIC Charter, and was officially announced through PDIC Bulletin 2024-09.
The change means that depositors in IBs and IBUs now enjoy the same maximum deposit insurance coverage (MDIC) of ₱1 million per depositor, per bank, as those with conventional bank accounts. The updated MDIC took effect on March 15, 2025.
According to PDIC, there were 12,514 Islamic deposit accounts in the banking system as of December 2024.
“This reform ensures that depositors of Islamic banks are equally protected and promotes greater confidence in the Islamic banking sector,” said PDIC president and CEO Roberto B. Tan. “It also supports the government’s thrust toward wider financial inclusion and a more robust Islamic finance ecosystem.”
Islamic banks and IBUs operate under Shari’ah principles, offering financial services that uphold ethical conduct, prohibit interest, and promote risk-sharing. Their products cater to clients seeking faith-compliant banking and socially responsible finance.
The inclusion of Islamic deposits in PDIC coverage is expected to encourage broader participation in formal banking, especially in underserved Muslim communities.
It also strengthens the institutional framework supporting the growth of Islamic finance in the Philippines—a sector viewed as having strong potential to contribute to sustainable and inclusive economic development, PDIC said. —Ed: Corrie S. Narisma
