Your deposit is insured up to P250,000.

PDIC Depositor Awareness Program for Overseas Filipino Workers

Understanding Deposit Insurance

Ms. Maria Leonida Fres-FelixVice President

Communication and Stakeholder Relations GroupPhilippine Deposit Insurance Corporation

Your deposit is insured up to P250,000.

“A good provider is one who leaves…”

New York Times MagazineApril 22, 2007

Your deposit is insured up to P250,000.

Your deposit is insured up to P250,000.

‘Italian Village’

Your deposit is insured up to P250,000.

Some OFW deployment statistical data

For 2006, remittances through banks reached $12.8B and $1.2B through informal channels.

Average remittances of nearly $15B a year, comprising nearly 10.9 percent of GDP

Your deposit is insured up to P250,000.

Remittance allocation

Payment of debts Basic household expenses Purchase of appliances/furniture Children’s education Capital for business Purchase of land, house and lot Personal cash savings

Your deposit is insured up to P250,000.

Remittance allocation

Your deposit is insured up to P250,000.

Remittance flow

Formal and regulated-banks-money transfer agencies-door-to-door

Informal and unregulated-padala (through friends, co-workers, relatives, etc.)-inserted in mails, cargoes, etc.

Your deposit is insured up to P250,000.

Remittance channels

69% of the respondents in the nationwide NSO Survey on Overseas Filipinos in 2005 regularly send remittances through banks or other regulated channels.

Mode % of Total

Cash 92

Formal (banks & non-banks) 69

Informal channels 23

Non-cash 8

Source: 2005 NSO Survey on Overseas Filipinos

Your deposit is insured up to P250,000.

Gov’t agencies concerned with OFWs

DOLE, OWWA, POEA, DFA and financial regulators such asthe Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit Insurance Corporation (PDIC) can initiate programs on:

financial literacy consumer awareness savings mobilization

Your deposit is insured up to P250,000.

PDIC signages

Your deposit is insured up to P250,000.

Corporate profile

Philippine Deposit Insurance CorporationPhilippine Deposit Insurance Corporation

government agencygovernment agency created in 1963 by virtue of RA 3591created in 1963 by virtue of RA 3591

Your deposit is insured up to P250,000.

To protect depositors and help strengthen To protect depositors and help strengthen public confidence in the stability of the public confidence in the stability of the

banking system.banking system.

Corporate mandate

Your deposit is insured up to P250,000.

1963 - P 10,0001963 - P 10,0001978 - 15,0001978 - 15,0001984 - 40,0001984 - 40,0001992 - 100,0001992 - 100,0002004 - 250,0002004 - 250,000

MDIC increases

Your deposit is insured up to P250,000.

PDIC member banks

PDIC has 862 member banks.

As of December 2006:As of December 2006:

Commercial banks 39Thrift banks 84Rural banks 739

Total Number of Member Banks 862

Your deposit is insured up to P250,000.

Board of DirectorsBoard of Directors(as of Dec.31, 2005)(as of Dec.31, 2005)

Upper Row, from left to right: PDIC President and CEO Ricardo M. Tan (Vice-Chairman); Finance Secretary Margarito B. Teves (Chairman); BSP Governor Amando M. Tetangco,

Jr. (Director); Lower Row, from left to right: BSP Deputy Governor Nestor A. Espenilla, Jr. (Alternate

Director); Director Carmen De Venecia-Lim; Director Ruben D. Almendras; and Finance Undersecretary Gabriel R. Singson, Jr.

Acting President Michael A. Acting President Michael A. OsmeñaOsmeña

Corporate profile

Your deposit is insured up to P250,000.

Insurance assessment collectionInsurance assessment collection Claims settlementClaims settlement Receivership and liquidationReceivership and liquidation Failure resolutionFailure resolution Risk assessment and managementRisk assessment and management Bank examination and investigationBank examination and investigation

Functions

Your deposit is insured up to P250,000.

Insurance and assessment collectionInsurance and assessment collectionPremium assessment rates:Premium assessment rates:

-1992 to present – 1/5 of 1 -1992 to present – 1/5 of 1

percentpercent

Functions

Your deposit is insured up to P250,000.

Functions

Claims settlementClaims settlement- - Processing and settlement of claims for Processing and settlement of claims for

insured insured deposits of up to Php250,000 per deposits of up to Php250,000 per depositor. depositor.

Insured deposit means Insured deposit means the amount due to any the amount due to any depositor net of any depositor net of any obligation of the obligation of the depositor to the bank as depositor to the bank as of date of closure. of date of closure.

Your deposit is insured up to P250,000.

Receivership and liquidation Receivership and liquidation - Inventory and preservation of assets, - Inventory and preservation of assets,

records and records and affairs of closed banks affairs of closed banks- Conversion of loans and disposal of fixed - Conversion of loans and disposal of fixed

assets into assets into cash cash- Processing of creditors’ claims- Processing of creditors’ claims- Implementation of final settlement of claims- Implementation of final settlement of claims

Functions

Your deposit is insured up to P250,000.

NOTE: PDIC has to determine that the costs of actual NOTE: PDIC has to determine that the costs of actual payout and liquidation of the banks in danger of closing payout and liquidation of the banks in danger of closing will be more expensive than the grant of financial will be more expensive than the grant of financial assistance.assistance.

Functions

Failure resolution through:Failure resolution through:- Extension of loans- Extension of loans- Purchase of assets- Purchase of assets- Assumption of liabilities- Assumption of liabilities

Your deposit is insured up to P250,000.

Functions

Risk assessment and management: Risk assessment and management: - Offsite monitoring of financial condition of - Offsite monitoring of financial condition of

member member banks banks- Identification of risk areas- Identification of risk areas- Institution of prompt corrective actions- Institution of prompt corrective actions

Your deposit is insured up to P250,000.

Functions

Bank examination and investigation Bank examination and investigation - Onsite examination of member banks with - Onsite examination of member banks with

prior prior approval by the Monetary Board approval by the Monetary Board

The revised PDIC CHARTER authorizes the The revised PDIC CHARTER authorizes the Corporation Corporation to investigate banks for suspected anomalous to investigate banks for suspected anomalous and fraudulent actions detrimental to the and fraudulent actions detrimental to the depositing public. depositing public.

Your deposit is insured up to P250,000.

MDIC under Section 4(g) of RA 9302

All deposits in the bank maintained in the same All deposits in the bank maintained in the same right andright andcapacity shall be added together and covered up capacity shall be added together and covered up to P250,000.to P250,000. A joint account regardless of conjunctions (a, A joint account regardless of conjunctions (a, and/or, and) shall be insured separately from and/or, and) shall be insured separately from individually-owned or singleindividually-owned or singleaccount.account. The MDIC of joint accounts shall be equally The MDIC of joint accounts shall be equally divided among the account owners.divided among the account owners. The shares of an account owner in several joint The shares of an account owner in several joint accounts maintained in the same right and accounts maintained in the same right and capacity shall be consolidated and subject to the capacity shall be consolidated and subject to the MDIC of P250,000.MDIC of P250,000. The aggregate of the interests of each co-owner The aggregate of the interests of each co-owner over several joint accounts shall be subject to the over several joint accounts shall be subject to the MDIC.MDIC.

Your deposit is insured up to P250,000.

Claims settlement

Illustrative caseIllustrative case- Jose- Jose P300,000P300,000- Jose and Pilar- Jose and Pilar 400,000 400,000- Jose and/or Pilar - Jose and/or Pilar 250,000 250,000- Jose and/or Anita- Jose and/or Anita 300,000 300,000

Your deposit is insured up to P250,000.

The computation will be as follows:

Claims settlement

Deposit Account Name Account Insured UninsuredBalance Deposit Portion Jose Pilar Anita

Jose 300,000 250,000 50,000 250,000Jose and/or Pilar 250,000 250,000 125,000 125,000Jose and Pilar 400,000 250,000 150,000 125,000 125,000Jose and/or Anita 300,000 250,000 50,000 125,000* 125,000Total Deposit 1,250,000Total Insured Deposit 500,000 250,000 125,000Total Uninsured Deposit 250,000

Share in the Insured Deposit

*Excess after consolidating Jose’s shares in the three joint accounts under his name.

Your deposit is insured up to P250,000.

June 16-22: Depositor June 16-22: Depositor Protection and Awareness WeekProtection and Awareness Week(Proclamation No. 358, April 4, (Proclamation No. 358, April 4, 2003)2003)

Depositor Protection

Your deposit is insured up to P250,000.

Depositor Protection

- Hanging of streamers - Hanging of streamers by banksby banks- Newspaper Newspaper supplementssupplements- TV appearancesTV appearances

Your deposit is insured up to P250,000.

Depositor Protection

Depositor’s Assistance Bureau. PDIC’s response Depositor’s Assistance Bureau. PDIC’s response action desk that attends to queries and complaints action desk that attends to queries and complaints of depositors and the general public.of depositors and the general public.

- Provides information on queries about - Provides information on queries about deposit deposit insurance. insurance.

- Provides frontline depositor assistance - Provides frontline depositor assistance during during field operations. field operations.

Your deposit is insured up to P250,000.

Depositors Assistance Bureau’s communication facilities:

•Website: www.pdic.gov.ph

•Email: dab@pdic.gov.ph•Phone: 841-4631 (direct line)

841-4000 (trunk line)841-4637 (telefax)

•Mail and visit: The Depositors Assistance Bureau6/F SSS BuildingAyala Avenue corner V.A. Rufino St.Makati City

•E-complaint form

Depositor protection

Your deposit is insured up to P250,000.

Information and education activities

Conducting informal meetings/forum during takeover of closed banks Assistance during filing of claims Local and national media relations Liaising with LGUs and NGOs Production of multimedia information tools

Your deposit is insured up to P250,000.

Information and education activities

Production of multimedia information tools

Your deposit is insured up to P250,000.

“The depositor’s vigilance in trying to get as much information about his bank and the banking industry is still the best protection against loss of his deposit.”

Vigilance is the best defense.

Your deposit is insured up to P250,000.

MARAMING SALAMAT!