Manila: Islamic banks (IBs) and Islamic banking units (IBUs) are now officially included in the country's deposit insurance system, as announced by the Philippine Deposit Insurance Corporation (PDIC). Deposits in these banks will be insured similarly to conventional deposits, with coverage up to the maximum deposit insurance coverage (MDIC) of PHP1 million per depositor, per bank.
According to Philippines News Agency, PDIC emphasized that the inclusion of Islamic deposits under the deposit insurance scheme ensures that depositors in Islamic banks receive the same level of protection as those in conventional banks. This move is aimed at fostering confidence in the Islamic banking system. PDIC President and CEO Roberto Tan stated, "The expansion of deposit insurance to include Islamic deposits guarantees that depositors of Islamic banks have the same level of protection as those of conventional banks."
The initiative supports the national government's goals of promoting financial inclusion and strengthening the Islamic banking sector in the Philippines. By offering similar protections, the government encourages more individuals and businesses to save in banks. As of the end of December last year, there were 12,514 Islamic deposit accounts within the banking system.
Islamic banks and banking units offer financial products and services compliant with Shari'ah Law, emphasizing ethical financing, risk-sharing, and socially responsible practices.
