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Rewarding stronger risk management today to better protect Filipino depositors tomorrow. The Philippine Deposit Insurance Corporation (PDIC) is gearing up for the Risk-Based Assessment System (RBAS) for banks, a landmark reform that aims to align banks’ deposit insurance premium with their individual risk profiles. Under the proposed RBAS, banks that manage their risks better will not be required to contribute to the PDIC’s Deposit Insurance Fund (DIF) in exactly the same way as banks that do not manage their risks well, thereby promoting sound governance, stronger financial condition, and prudent risk management. This will ultimately benefit the depositing public through a stronger and more resilient banking system. RBAS was discussed by PDIC General Counsel Maria Antonette I. Brillantes-Bolivar (inset and 3rd from left) during the “PDIC 101: Understanding Deposit Insurance”, a joint press conference of the PDIC and the Philippine Information Agency (PIA) on August 5, 2026. Also in photo are (L-R): PIA Division Chief Darrel Winthrop G. Torres (Program Management Division), PDIC President and CEO Roberto B. Tan, and PDIC Vice President Jose G. Villaret, Jr. (Corporate Affairs Group).

State deposit insurer Philippine Deposit Insurance Corporation (PDIC) has introduced its proposed Risk-Based Assessment System (RBAS), a landmark reform that will strengthen the country's deposit insurance framework by aligning banks' deposit insurance premium rates with their individual risk profiles.

The new initiative was presented to members of the media during the conduct of “PDIC 101: Understanding Deposit Insurance”, a press conference held in partnership with the Philippine Information Agency (PIA) on August 5, 2026 at the PIA office in Quezon City.

PDIC General Counsel Maria Antonette I. Brillantes-Bolivar, who heads the PDIC RBAS working group, said the reform will promote stronger risk governance among banks while preserving full depositor protection through the maximum deposit insurance coverage of P1 million per depositor, per bank.

Unlike the current system, where all banks pay a flat assessment rate of one-fifth of one percent of total deposit liabilities, the RBAS will adopt a risk-based approach. Assessment rates will reflect each bank's overall risk profile, taking into account factors such as capital adequacy, liquidity, asset quality, governance, business model, and supervisory assessments adopted by the Bangko Sentral ng Pilipinas (BSP).

"The RBAS promotes fairness by ensuring that assessment rates better reflect a bank's level of risk. It also encourages banks to strengthen governance, maintain adequate capital, and adopt sound risk management practices that contribute to a safer and more resilient banking system," Atty. Bolivar shared.

RBAS is being developed with the advisory services of the World Bank Group and in consultation with the BSP and the different bank associations. Under the framework, financial and supervisory indicators will be combined to generate a composite risk score that will determine each bank's assessment rate. Banks with stronger risk profiles may qualify for lower assessment rates. RBAS is also aligned with the Core Principles for Effective Deposit Insurance Systems of the International Association of Deposit Insurers (IADI), which encourage the use of risk-sensitive premium assessment frameworks.

To ensure a smooth transition, the Corporation will conduct a one-year shadow run before full implementation by 2028. During this period, banks will continue paying the current flat rate while receiving estimates of what their premiums would be under the RBAS. The exercise will also allow the state deposit insurer to test and refine the framework.

The PDIC emphasized that all bank-specific assessments, simulated scores, and risk ratings will remain strictly confidential. The framework also includes mechanisms for clarification, review, and periodic recalibration to keep the methodology responsive to evolving industry conditions.

As co-regulator of banks alongside the BSP, the PDIC said the RBAS reinforces its commitment to financial stability and depositor protection by creating stronger incentives for prudent risk management and a safer, fairer, and more resilient banking system.

The Philippine Deposit Insurance Corporation (PDIC) was established on 22 June 1963 by Republic Act 3591 to protect depositors and help maintain stability in the financial system. The PDIC is an attached agency of the Bangko Sentral ng Pilipinas and a member of the Financial Sector Forum, the Financial Stability Coordination Council, and the Financial Inclusion Steering Committee. PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.

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