Pdic Wants Govt To Shoulder Higher Deposit Insurance Coverage

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PDIC wants govt to shoulder higher deposit insurance coverage By Eileen A. Mencias Philippine Deposit Insurance Corp. is in favor of proposals to increase the maximum deposit insurance coverage to P1 million for a three-year period without higher charges, provided the national government shoulders the cost and its capital increased by P24 billion. Speaking at the general membership meeting of the Chamber of Thrift Banks yesterday, PDIC president Jose Nograles said the increase in the deposit insurance coverage was similar to what had been done in other countries in the face of the global financial meltdown. Read the whole story belowhttp://www.manilastandardtoday.com/?page=b...ess5_nov19_2008

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PDIC wants govt to shoulder higher deposit insurance coverage By Eileen A. Mencias Philippine Deposit Insurance Corp. is in favor of proposals to increase the maximum deposit insurance coverage to P1 million for a three-year period without higher charges, provided the national government shoulders the cost and its capital increased by P24 billion. Speaking at the general membership meeting of the Chamber of Thrift Banks yesterday, PDIC president Jose Nograles said the increase in the deposit insurance coverage was similar to what had been done in other countries in the face of the global financial meltdown. Read the whole story belowhttp://www.manilastandardtoday.com/?page=b...ess5_nov19_2008
This would be a good change for me personally, but I'm not sure it's worth the cost. If they need an additional 24 billion plus expenses, I'm not sure what they get in return. They cite an avearage account balance of 119000php, well with in current coverage, so what benefit are they expecting to see? One million pesos is about 25k USD. In my experience, if a Filipino has this much money, they've got a whole lot more than that as well. I really don't see this change leading to a big change in either the amount on deposit or money moving offshore.Seems like the RP could use the excess of 24billion in more effective ways to help the economy. For starters, how about low cost govt. loans to farmers so they don't need to borrow under the 5/6 system? That would help the economy far more than anything else would. Of course, then the oligarchs wouldn't be able to bleed the farmers dry so may as well increase the deposit insurance for the wealthy instead.
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