[2] The primary function of PDIC is to protect small investors/depositors and build strong confidence in banking.

In 1978, the maximum deposit insurance coverage was increased to 15,000 pesos per depositor, according to Presidential Decree 1451.

As a result, PDIC drafted an Institutional Strengthening Program laying the groundwork for an institutional/organizational restructuring to cope with the expanded function; setting of upgraded standards, hiring procedures and intensive training programs; and innovations in systems and procedures with emphasis on computerization and automation.

The funds were invested in high-yielding, risk-free government securities, which can be availed of by member rural banks in the event of liquidity crisis.

In 1996, innovations were adopted to facilitate claims payment, including: In 2004, the institution made amendments with the goal of protecting depositors from loss.

PDIC, as liquidator, completed 78 final projects of distribution (POD) for closed banks.

POD refers to the specific distribution plan of a closed bank's assets and is submitted to the Liquidation Court for approval.