PDIC to pay insurance claims of depositors of 12 rural banks

The Philippine Deposit Insurance Corp. (PDIC) said it would start paying out the deposit insurance claims of the depositors of 12 rural banks that have been placed under receivership by the Bangko Sentral ng Pilipinas (BSP).

PDIC president Jose C. Nograles said these 12 banks combined have estimated deposit accounts of over 135,000 in 50 locations all over the country, with total deposit insurance claims of at least P14 billion.

Nograles said PDIC had already deployed more than half of PDIC’s personnel complement as it also engaged a central bank-accredited external auditor to assist in the pre-settlement examination.

“The pre-settlement examination is a prerequisite to claims payout. PDIC’s paramount concern is to pay valid claims of depositors at the soonest possible time to provide them immediate relief,” Nograles said. “However, as in any claim for insurance, we need to examine bank records and evaluate these to verify their validity before we can begin payout.”

Payments for the claims, according to Nograles, would come out of the PDIC’s Deposit Insurance Fund (DIF). He said the PDIC wants to ensure that the fund as well as depositors are protected by ensuring that payments are made to the right persons.

“The outsourcing of pre-settlement examination will speed up the process and will enable PDIC to start payout by middle of February,” Nograles said.

According to Nograles, the PDIC is prioritizing the claims of small depositors with deposits of P100,000 and below.

Based on available data, Nograles said these small depositors represent about 62 percent of deposit accounts in these 12 closed banks.

Nograles said the PDIC has already begun discussions with top audit firms to finalize the contract.

These firms included Manabat, Delgado, Amper & Co. (Deloitte Touche Tohmatsu), Isla Lipana & Co. (Price Waterhouse Coopers), Manabat San Agustin & Co. (KPMG), SGV (Ernst & Young) and Punongbayan & Araullo (Grant Thornton International) – all have signified interest to undertake the engagement.

First in line, according to Nograles, were depositors of Rural Bank of Paranaque, Pilipino Rural Bank, Rural Bank of Bais (Negros Oriental), Rural Bank of San Jose (Batangas), Bank of East Asia, First Interstate Bank, Philippine Countryside Rural Bank, Dynamic Rural Bank, Nation Bank, Rural Bank of Carmen (Cebu), Rural Bank of DARBCI, and San Pablo City Development Bank.