PDIC settles claims of over half of Legacy depositors

MANILA, Philippines - The state-run Philippine Deposit Insurance Corp. (PDIC) announced yesterday that it has settled more than half of the almost P14 billion claims from depositors of the 12 affiliated banks of controversial Legacy Group.

PDIC president Jose Nograles told reporters yesterday that the government-owned deposit insurer has paid P7.8 billion consisting of 74,779 claims or about 56 percent of the total claims covering 121,354 accounts worth P13.83 billion.

Nograles pointed out that approved claims as of June 18 already amounted to P8.9 billion, covering 80,448 depositors.

He explained that the remaining P4.93 billion covering 40,866 deposit accounts of the Legacy banks are still being verified.

“The balance are composed of claims approved but have yet to be paid and claims that are problematic for various reason, including insufficient documentary support,” he added.

Nograles reiterated that PDIC pays deposit insurance only on valid deposit accounts.

While there is adequate prudential regulation that provides the necessary safety net for depositors, he said the depositing public still needs to be more aware and cautious in their bank transactions in order to protect themselves.

The Bangko Sentral ng Pilipinas (BSP) has already issued Circular Letter No. 2008-071 prohibiting transacting outside bank premises without prior approval from the BSP, pursuant to Section X213 of the Manual of Regulations for Banks.

PDIC is currently overhauling its claim processing in its bid to simplify the scheme after an unprecedented spate of bank closures in December last year.

Nograles ordered a review of the company’s systems relative to claims processing especially after the closure of 12 thrift banks under the controversial Legacy group.

The 12 Legacy banks alone had deposits of around P14 billion in about 135,000 accounts. In comparison, all the 17 banks closed in the whole of 2007 had combined deposits of only P1.6 billion in over 68,000 accounts.