Business groups urge gov’t to return PDIC dividend remittances – BusinessWorld Online
BUSINESS GROUPS are pressing the Department of Finance and Congress to return the Philippine Deposit Insurance Corp.’s (PDIC) dividend remittances to the national Treasury, saying the funds should remain dedicated to protecting depositors’ savings.
“Returning the remitted funds will reaffirm that the resources of the PDIC are reserved exclusively for their intended purpose — to safeguard the savings of the Filipino people and to uphold confidence in the financial system,” the Financial Executives Institute of the Philippines (FINEX), Institute of Corporate Directors (ICD), Makati Business Club (MBC), Philippine Chamber of Commerce and Industry (PCCI) and Philippine Finance Association (PFA) said in a statement on Tuesday.
The groups were referring to the P107 billion remitted by PDIC to the Treasury as “unrestricted retained earnings,” counted as part of the government’s dividend haul from government-owned and -controlled corporations in 2024. The Philippine Health Insurance Corp. (PhilHealth) last year also remitted P60 billion in excess funds under the same policy.
In September, former Finance Secretary Ralph G. Recto said PhilHealth’s remitted amount would be restored as “savings” in the proposed 2026 national budget.
“The government has since recognized the importance of keeping those resources within the healthcare system… The same principle should apply to the PDIC,” the groups said. “Funds accumulated to insure the savings of Filipino depositors must remain dedicated to their original purpose.”
They urged the government to ring-fence the deposit insurance fund (DIF) to ensure it is excluded from future dividend collections and fiscal transfers.
While officials have said the DIF remains untouched — and that its ratio of 7.83% to estimated insured deposits is above the 6.5% target — the act of transferring any part of PDIC’s reserves raises serious concerns, the groups said.
They added that PDIC should publish clear disclosures on the fund’s present and projected capacity to withstand systemic shocks.
“The Philippine banking sector continues to demonstrate resilience and discipline amid economic headwinds,” they said. “However, public confidence remains its most valuable asset. The PDIC must remain independent, transparent and sufficiently capitalized to perform its core mandate of protecting depositors.” — Aaron Michael C. Sy
