November 28, 2017

The Philippine Deposit Insurance Corporation (PDIC) generated a total of PHP13.4 million from the sale of seven corporate and closed banks’ properties during its public bidding held on November 16, 2017 at the Bangko Sentral ng Pilipinas (BSP)–Legazpi Branch, Barangay 18 Rizal, St. Cabagñan, Legazpi City. The properties sold are located in Albay, Camarines Norte, and Camarines Sur.

Closed banks’ assets sold comprised a vacant residential lot, two commercial lots with improvements, and three residential lots with improvements. A vacant agricultural lot located in Goa, Camarines Sur and owned by PDIC was likewise disposed. The bidding yielded an aggregate premium of PHP4.1 million based on the combined minimum disposal price of PHP9.3 million.

Proceeds from the sale of closed banks’ properties are added to the pool of liquid assets of these banks for distribution to creditors and uninsured depositors in accordance with the rules on concurrence and preference of credits. Meanwhile, gains from the sale of corporate assets are added to the Deposit Insurance Fund, PDIC’s fund source mainly for payment of valid deposit insurance claims.

The expeditious liquidation of assets is one of the strategic directions of PDIC as statutory receiver and liquidator of closed banks. To help ensure that recoveries from closed banks’ assets are maximized, PDIC sells assets via competitive biddings and auctions. After which, unsold assets may be acquired by interested parties via negotiated sale.

Interested buyers are encouraged to visit the PDIC website at www.pdic.gov.ph and click the Assets for Disposal section for information on available inventory of assets for sale. Prospective buyers may also communicate with the PDIC Public Assistance Department at (02) 841-4630 to 31 or at e-mail address pad@pdic.gov.ph.

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The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is PHP500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.

PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.