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Executive Orders

Further Amending the Charter of the Philippine Deposit Insurance Corporation

Executive Order No. 890

EXECUTIVE ORDER NO. 890 April 8, 1983

FURTHER AMENDING THE CHARTER OF THE PHILIPPINE DEPOSIT INSURANCE CORPORATION

WHEREAS, developments in the Philippines financial system make it necessary to institute organizational and procedural reforms in the present system for the administration of the insurance of bank deposits;

WHEREAS, to achieve this, there is need to effect adaptive changes in the organization of the Philippine Deposit Insurance Corporation, which shall include a reconstitution of its governing board and top management structure; and

WHEREAS, under Presidential Decree No. 1416 as amended, the President is empowered to undertake such organizational and related improvements as may be appropriate in the light of changing circumstances and new developments.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and the authority vested in me by Presidential Decree No. 1416 as amended, do hereby order and ordain:

Sec. 1. Section 2 of Republic Act No. 3591, as amended, is hereby further amended to read as follows:

"Sec. 2. The powers...

Summary of Executive Order No. 890

Reconstitution of the Philippine Deposit Insurance Corporation (PDIC) Board of Directors
- The Board shall have 3 members: (Sec. 1)
    - Governor of the Central Bank of the Philippines as Chairman
    - President of PDIC as ex-officio member
    - Deputy Minister of Finance designated by the Minister of Finance
- Quorum is 2 members, decisions require concurrence of at least 2 members
- Board members receive per diem up to P500 per meeting, max P2,000 per month (Sec. 1)

Appointment and Powers of the PDIC President
- Appointed by the President of the Philippines for 6-year term (Sec. 2-A)
- Must have qualifications in economics, banking, finance, law, management, or insurance (Sec. 2-A)
- Prepares agenda, executes policies, directs operations, represents PDIC (Sec. 2-A)
- Assisted by a Vice President and other officials approved by the Board (Sec. 2-A)

Powers of the Board of Directors
- Issue rules and regulations for effective discharge of responsibilities (Sec. 2)
- Direct management, operations, and administration of PDIC (Sec. 2)
- Appoint, rank, fix remuneration, and remove officers and employees (Sec. 2)
- Authorize expenditures for effective administration and operation (Sec. 2)

Examination of Insured Banks and Claims
- Board appoints examiners to examine insured banks (Sec. 9(b))
- Board appoints claim agents to investigate and examine claims (Sec. 9(b))
- PDIC and Central Bank have access to each other's reports (Sec. 9(d))

Regulation of Insured Banks
- Insured banks must display signs and include statements about PDIC insurance (Sec. 16(a))
- Penalties for violating advertising requirements (Sec. 16(a))
- Restrictions on paying dividends or distributing assets while in default (Sec. 16(b))
- Prior consent required for mergers, consolidations, or liability assumptions (Sec. 16(c))
- PDIC may require insured banks to have protection against losses (Sec. 16(d))
- Penalties for failure to file statements or pay assessments (Sec. 16(e))

Reorganization of PDIC
- PDIC shall be reorganized within 6 months (Sec. 6)
- Current personnel continue functions during interim period (Sec. 6)
- After reorganization, all positions deemed vacant, laid off personnel entitled to benefits (Sec. 6)

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