MANILA – The Philippine Deposit Insurance Corporation’s capacity to meet its mandate of providing deposit insurance further strengthened with the 11.9 percent year-on-year growth of its deposit insurance fund as of February.

In a statement, the estate deposit insurer said its DIF as of the second month this year totaled to P72.62 billion, up from year-ago’s P64.91 billion.

“The growth of the DIF was achieved in spite of the payouts made for the insured deposits of closed banks including most of the 31 banks that were closed in 2011,” it said.

The DIF is invested in Philippine government securities and government guaranteed instruments mandated under PDIC’s Charter.

PDIC has received a multi-donor technical assistance grant dubbed the “Enhancement of Insurance Reserves Targeting Framework” under the Financial Sector Reform and Strengthening Initiative Project to further strengthen the DIF.

The FIRST initiative, which is being implemented by the World Bank, targets to strengthen the financial sector.

Closures of weak banks in the past years have made PDIC confident of the continued strengthening of the country’s banking system.

This development, it said, is beneficial both to the banking public as well as the DIF.

PDIC has been exercising vigilance in its onsite and offsite monitoring of the financial condition of member banks to further minimize the risk brought about by unsound banking practices among others.

It has also issued several Regulatory Issuances to implement the authorities granted to it under the new Charter to examine banks and investigate them if there are reports of unsafe and unsound practices.*PNA

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