Arroyo signs bill doubling deposit insurance

MANILA, Philippines-President Gloria Macapagal-Arroyo will enact the amendatory bill doubling the insurance for bank deposits on Wednesday in a bid to enhance confidence in the banking system, a Malacanang statement said. Mrs. Arroyo will sign into to law the amendments to the charter of state-run Philippine Deposit Insurance Corp. (PDIC) on the sidelines of the Philippine Economic Zone Authority Investors' Recognition Night at the World Trade Center in Pasay City. "The amendments to the PDIC charter form part of the financial reforms designed to bolster the protection of bank deposits, enhance confidence in, and contribute to a stronger banking system," the statement read. An attached agency to the Finance department, PDIC is the deposit insurer, co-regulator of banks, receiver and liquidator of closed banks. Right now, the maximum deposit insurance coverage is P250,000 per depositor. As Republic Act 3591 will be amended, the insurance coverage of bank deposits will increase to P500,000. Expected to witness the signing ceremony are Finance Secretary Margarito Teves, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr., Trade Secretary Peter Favila, PDIC president Jose Nograles and the principal sponsors of the amendments including Sen. Edgardo Angara and Manila Rep. Jaime Lopez. -GMANews.TV