The Philippine Deposit Insurance Corporation (PDIC) announced that Islamic banks (IBs) and Islamic banking units (IBUs) are now officially included in the country’s deposit insurance system.
In a statement on Wednesday, PDIC said deposits in IBs and IBUs are insured just like conventional bank deposits, with coverage of up to PHP1 million per depositor, per bank.
“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, thereby fostering confidence in the Islamic banking system,” said PDIC President and CEO Roberto Tan.
“This aligns with the national government’s pursuit of promoting financial inclusion and strengthening of the Islamic banking sector in the country as this encourages more individuals and businesses to save in banks,” he added.
As of end-December 2024, there were 12,514 Islamic deposit accounts in the banking system.
Islamic banks and their units provide financial services compliant with Shari’ah Law, emphasizing ethical financing, risk-sharing, and socially responsible practices.