PDIC needs financial auditor for Exportbank valuation

CEBU, Philippines - The Philippine Deposit Insurance Corporation (PDIC) is considering to engage the services of a financial auditor to help the agency determine the valuation of Export & Industry Bank (EIB).

In a statement, PDIC announced that the proposal will be submitted to the PDIC Board and the Monetary Board that will ultimately approve the proposal.

PDIC has 90 days to determine the rehabilitation proposal that is most advantageous to depositors, creditors and taxpayers.

BDO has submitted a proposal to rehabilitate EIB with certain conditions. PDIC is reviewing the legal and economic viabilities of said proposal. Some of the conditions as proposed are not within the authority of PDIC.

According to PDIC its immediate concern now is to take stock of the deposit liabilities of EIB and conduct payout for all valid insured deposits as soon as possible. Payment for accounts with balances of P10,000 and below will start by the end of the month. 

Holders of these accounts who have no outstanding loans and who have updated their addresses in the bank in the past year, need not file deposit insurance claims.

Claims servicing operations for accounts of over P10,000 are expected to commence no later than end of June 2012.

PDIC took over the bank on April 27, 2012 through the MB Resolution number 686, and it currently gathering all the assets of the closed bank and verify and validate all bank record. 

Export & Industry Bank is a 50-unit bank with Head Office located in Exportbank Plaza, Chino Roces Avenue corner Sen. Gil Puyat Avenue, Makati City. Latest available records show that as of December 31, 2011, the Bank had 50,092 accounts with total deposit liabilities of P15.98 billion.

According to the latest General Information Sheet filed by Export & Industry Bank with the Securities and Exchange Commission, the bank is majority owned by Ridderbrecht B.V. (11.62 percent), Lead Bancfund Holdings, Inc. (10.03 percent), Apex Bancrights Holdings, Inc. (10.03 percent), Extra Year Investments Ltd. (9.5 percent), Asiawide Refreshments (8.45 percent), Medco Asia Investments Corp. (7.86 percent), among others. Its Chairman is Jaime C. Gonzalez and its President is Juan Victor S. Tanjuatco.

PDIC conducted Depositors Forums started on May 2, 2012 to explain the requirements and procedures for filing deposit insurance claims.

During the Depositors Forum, PDIC will also discuss matters pertaining to loan obligations of borrowers with the closed Export & Industry Bank.

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 permanent and continuing deposit insurance. —

Effective June 1, 2009, the maximum deposit insurance coverage is P500,000 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.  (FREEMAN)