Deposit protection scheme could spur reckless lending

The central bank continues to consult on the DPF, which would insulate customers’ funds in the event of a bank default, with a focus on small savers. By September, commercial banks held deposits of about P75 billion, with about P15.3 billion of these owed to individual customers.

While the Financial Stability Council, made up of the BoB, NBFIRA and the Financial Intelligence Agency, has already concluded consultations on the macro-prudential policy framework, talks with the banks are ongoing.