PDIC pays P1.18 billion in deposit insurance for closed banks in 2019

PDIC 010518 - PDIC pays P1.18 billion in deposit insurance for closed banks in 2019BW FILE PHOTO

THE PHILIPPINE Deposit Insurance Corp. (PDIC) paid a total of P1.18 billion in deposit insurance last year to 51,278 valid deposit accounts, it reported on Thursday.

In a statement yesterday, PDIC said the amount covered 92.25% of the total deposit insurance claims from the banks that were closed in 2019.

The state deposit insurer took over a total of 11 banks that the Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) ordered closed last year.

These banks were the Bagong Bangko Rural ng Malabang in Lanao del Sur, Inc., the Rural Bank of Mabitac in Laguna, Inc., The Palawan Bank (Palawan Development Bank), Inc., Valiant Bank, Inc. (A Rural Bank), the Rural Bank of Basey in Samar, Inc., the Rural Bank of Guihulngan in Negros Oriental, Inc., the East Coast Rural Bank of Hagonoy, Inc., the Rural Bank of Larena in Siquijor, Inc., the Rural Bank of Lemery, Inc., the AMA Rural Bank of Mandaluyong, Inc. and the Maximum Savings Bank, Inc.

“Deposit insurance claims were paid within the target turnaround time of 12 to 42 working days proportioned on the number of valid deposit accounts maintained in the closed bank,” it said.

In 2019 alone, PDIC estimated that insured deposits reached P1.27 billion from 76,650 accounts, based on the payout operations they conducted from 10 closed banks out of the total 11.

PDIC said it was not able to make payouts for the closed AMA Rural Bank of Mandaluyong, Inc. due to the 60-day temporary restraining order (TRO) issued by the Court of Appeals (CA) on Nov. 25.

It said the TRO further delayed the payouts to depositors.

“Prior to the issuance of the TRO, PDIC was unable to immediately pay the claims of depositors of AMA Rural Bank for insured deposits due to the delay caused by the refusal of the bank’s directors and accountable officers and employees to turn over bank records to PDIC. The TRO has further delayed payouts to depositors,” it added.

As of June last year, AMA Rural Bank had total deposit liabilities of P1.4 billion for 8,434 deposit accounts. — B.M. Laforga

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