PDIC pays PhP1.18-B in deposit insurance claims for 2019
The Philippine Deposit Insurance Corporation (PDIC) paid a total of PhP1.18 billion in deposit insurance covering 51,278 valid deposit accounts from January to December 2019, or 92.25% of the total amount of deposit insurance claims of depositors from banks ordered closed in 2019 by the Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP).
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.
PDIC took over 11 banks ordered closed by the MB in 2019: 1) Bagong Bangko Rural ng Malabang (Lanao del Sur), Inc.; 2) Rural Bank of Mabitac (Laguna), Inc.; 3) The Palawan Bank (Palawan Development Bank), Inc.; 4) Valiant Bank, Inc. (A Rural Bank); 5) Rural Bank of Basey (Samar), Inc.; 6) Rural Bank of Guihulngan (Negros Oriental), Inc.; 7) East Coast Rural Bank of Hagonoy, Inc.; 8) Rural Bank of Larena (Siquijor), Inc.; 9) Rural Bank of Lemery, Inc.; 10) AMA Rural Bank of Mandaluyong, Inc.; and 11) Maximum Savings Bank, Inc. The state deposit insurer conducted payout operations for 10 of the 11 closed banks before the year ended. The estimated insured deposits in these 10 closed banks amounted to PhP1.27 billion involving 76,650 accounts.
The PDIC was unable to conduct payout operations 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 November 25, 2019 in favor of the bank’s majority stakeholders. The TRO constrained PDIC from continuing its deposit insurance and liquidation operations in said closed bank. PDIC has asked the CA to lift and dissolve the TRO.
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.
As of June 2019, AMA Rural Bank reported total deposit liabilities of PhP1.4 billion for 8,434 deposit accounts.
The PDIC has since advised depositors and creditors of the closed AMA Bank to communicate only with PDIC through its Public Assistance Department at telephone number (02) 8841-4141, or via e-mail PDIC at email@example.com. Depositors and clients of AMA Bank outside Metro Manila may call the PDIC Toll Free Hotline at 1-800-1-888-7342 (PDIC). Inquiries may also be sent to the official PDIC Facebook account at www.facebook.com/OfficialPDIC.
* * * * *
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.
Corporate Communications Dept.