PDIC starts paying BF depositors

MANILA, Philippines - State-run Philippine Deposit Insurance Corp. (PDIC) yesterday started paying small depositors of beleaguered Banco Filipino Savings & Mortgage Bank that was ordered closed by the Bangko Sentral ng Pilipinas (BSP) last March 17.

PDIC executive vice president Cristina Orbeta said in a statement that the government-owned insurer has started mailing postal money orders (PMOs) to depositors of Banco Filipino with account balances of P5,000 and below and those with no outstanding loans and whose addresses are complete in the bank’s records.

“This is the first batch of payments and mailing of PMOs to depositors will continue daily. Please allow time for the delivery of the PMOs to your houses,” Orbeta stressed.

She pointed out that the PMOs could be encashed in more than 1,400 post offices and over 300 branches of Land Bank of the Philippines all over the country.

As of end-December, accounts with balances of P5,000 and below make up 53 percent of the total number of deposit accounts maintained with Banco Filipino.

Orbeta said depositors with balances of P5,000 and below are not required to file deposit insurance claims, provided they have no outstanding loans and their addresses are complete in the bank records. Payment would be delivered by mail directly to their addresses.

On the other hand, she explained that depositors with balances of above P5,000 and those who have outstanding loans and incomplete address would need to file claims.

Orbeta said that though claims are not yet being received, PDIC is already preparing for the processing of claims and payment would start within 120 days or in mid-July.

“The speed of payout depends on the completeness and accuracy of records turned over by Banco Filipino to PDIC, the completeness of documents submitted by claimants, as well as the volume of deposit accounts to be examined.

We reassure the public that we will pay deposit insurance for all valid accounts. The whole organization is being mobilized to fasttrack the claims settlement operations to pay these accounts as soon as possible,” she added.

The BSP said officers of Banco Filipino mismanaged P15 billion worth of deposits through unsafe and unsound banking practices resulting anew in the collapse and closure of the erstwhile biggest savings bank in the country.

The BSP said in a statement release over the weekend that officers of Banco Filipino engaged in unsafe and unsound banking practices by offering high interest rates, continued lavish spending, and leaving loans extended to stockholders, officers and related entities unpaid.