PDIC settles over P600 million in deposit insurance claims

MANILA, Philippines — State-run Philippine Deposit Insurance Corp. (PDIC) settled P600.5 million in deposit insurance claims from January to October, demonstrating its steadfast commitment to protect the welfare of depositors affected by bank closures.

A total of 19,289 deposit insurance claims were paid during the 10-month period as PDIC expedited the processing and payment.

According to the PDIC, the amount settled accounted for 92 percent of the P651.4 million total estimated insured deposits in seven banks ordered closed by the Bangko Sentral ng Pilipinas (BSP) from January to October.

This was well within the established turnaround time for claims settlement.

Filing of deposit insurance claims is waived for depositors with valid deposits of up to P100,000 and who are eligible for automatic payments. These depositors were paid through postal money orders involving 16,390 claims worth P136.8 million or 22.8 percent of the total payments made.

The PDIC dispatched the PMO payments within 10 to 17 working days from the date of the corporation’s takeover of the bank, faster than the target dispatch of 14 to 19 days as determined by the number of deposit accounts in a closed bank.

For depositors with balances exceeding P100,000 who were required to file claims, the PDIC also achieved the necessary turnaround time to settle claims within 15 to 27 working days from the bank takeover date, surpassing the target of 21 to 27 days.

PDIC paid P463.7 million in insured deposits or 77.2 percent of  the total payments made to 2,899 claimants or 15 percent of the total number of claims.

The BSP Monetary Board ordered the closure of  Rural Bank of San Agustin (Isabela), Rural Bank of San Marcelino (Zambales), Binangonan Rural Bank (Rizal), Rural Bank of San Juan (Southern Leyte), Bangko Pangasinan – A Rural Bank, United Consumers Rural Bank (Isabela), and Rural Bank of Talisay (Cebu).

With the easing of COVID restrictions in 2022, the PDIC resumed its field operations claims settlement at the premises of closed banks for the convenience of depositors.

Under Republic Act 3591 or the PDIC Charter, the depositors of closed banks have two years from the date of the PDIC’s takeover of the closed bank to file their deposit insurance claims.

The PDIC is committed to protecting depositors by providing deposit insurance of up to P500,000 per depositor, per bank, as well as to raising awareness on deposit insurance in support of the government’s thrust to promote financial inclusion.