Duterte signs five local laws

MANILA, Philippines — President Duterte has signed into law five measures related to local maritime industry offices and schools.

The new laws were signed last April 29.

Republic Act 11760 creates an extension office of the Maritime Industry Authority in Vigan, Ilocos Sur, while RA 11761 converts the satellite office of the Maritime Industry Authority in Maasin City, Southern Leyte into an extension office.

Also signed were laws changing the name of Pinaglabanan High School in Goa, Camarines Sur to Pinaglabanan National High School (RA 11762); converting the Molmol Elementary School in Davao Occidental into an integrated school to be known as Mariano Anoy Sangay Integrated School (RA 11763) and changing the name of Salin Elementary School in Bauko, Mountain Province to Talban P. Bitayan Elementary School.

Meanwhile, the P500,000 current insurance for bank deposits may be increased to P750,000 or as much as P1 million, when Duterte signs into law the bill that has been approved both by the Senate and House of Representatives.

The House and Senate previously ratified the conference committee report on the bill.

The Congress-approved bill, now awaiting the Chief Executive’s signature, grants the state-run Philippine Deposit Insurance Corp. the power to increase the MDIC (maximum deposit insurance coverage) per depositor per bank.

Makati City Rep. Luis Campos Jr., a member of the House committee on banks and financial intermediaries, expects Duterte to sign the measure before he steps down on June 30.

Under the bill, the PDIC’s governing board “may increase the amount of the MDIC to an amount indexed to inflation or in consideration of other economic indicators as may be deemed appropriate.”

The measure also empowers the PDIC to review the amount of the MDIC every three years and enlarge it as may be warranted.

“The PDIC has no choice but to increase the MDIC because spiraling inflation is eroding at a faster rate the value of depositor protection afforded by the prevailing P500,000 ceiling,” Campos said.

The country’s inflation accelerated to a three-year high of 4.9 percent in April due to sustained price increases and lingering food supply issues. Economists see inflation surging to as high as 5.7 percent by June.

In House Bill 5812, Campos had originally proposed to double to P1 million the 13-year-old MDIC of P500,000 per depositor per bank.

However, instead of increasing the MDIC, as it did it in the past, Congress this time decided to give the PDIC the power to raise the ceiling.

Campos expressed confidence that the anticipated increase in the MDIC would further reinforce public confidence in the banking system and encourage even more Filipinos to save.

The Philippine banking system held P16.2 trillion in total deposits as of Dec. 31, 2021.

The deposits are spread over 87.1 million bank accounts owned by 81.7 million depositors, according to the Bangko Sentral ng Pilipinas.

Over the last five years, tens of thousands of depositors have been affected by the collapse or closure of 47 banks, including seven banks shut this year.

The MDIC was initially fixed at P10,000 in 1963 and then increased to P15,000 in 1978; P40,000 in 1984; P100,000 in 1992; P250,000 in 2004 and P500,000 in 2009.

Banks pay for the compulsory insurance premiums that guarantee the MDIC. – Delon Porcalla