PDIC settles P614 million in deposit insurance claims

MANILA, Philippines — State-run Philippine Deposit Insurance Corp. (PDIC) has settled P614 million in deposit insurance covering 15,796 accounts from padlock banks in 2023.

The claims are from depositors of the seven banks that were ordered closed by the Bangko Sentral ng Pilipinas (BSP) in 2023.

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

The amount of insurance payout accounted for 78 percent of the total claims at P477 million filed by depositors from shuttered banks.

The remaining 22 percent equivalent to P137 million was paid to depositors who were not required to file deposit insurance claims.

PDIC noted that valid deposit accounts with balances of P100,000 and below that qualified for waived filing of claims were settled within 10 to 17 days.

This is better than the turnaround time of up to 20 days in 2022.

Valid deposit accounts with balances of P100,000 and below that qualified for automatic payment and paid via postal money order comprised 86 percent of the total claims last year.

On the other hand, claims for deposits with balances above P100,000 and those that did not qualify for waived filing were also settled faster within 15 to 26 days.

The PDIC said closed bank depositors who filed claims now have more convenient options to secure payments through the multi-channel disbursement facility.

This allows for payments via electronic transfers to deposit accounts with other banks or accounts with electronic money issuers.

As provided for by the PDIC Charter, depositors of the seven banks who have not yet filed their deposit insurance claims have until two years from the date PDIC took over their banks to do so.