PDIC sets Oct 1 auction of closed banks’ assets

MANILA, Philippines - State-run Philippine Deposit Insurance Corp. (PDIC) is raising close to P23 million from the sale of assets of closed banks in the provinces scheduled on Oct. 1.

The deposit insurer is set to auction 10 vacant residential lots in a 35,842-square meter property in Gen. Santos City worth P14.3 million on Thursday.

PDIC is also selling off an auto shop and transportation equipment as well as various generator sets.

PDIC, as liquidator of closed banks, regularly conducts biddings and auctions to expeditiously dispose non-financial assets. 

Proceeds from the sale of closed banks’ properties are used to settle claims of uninsured depositors and creditors.

On the other hand, gains from the sale of corporate assets are added to the Deposit Insurance Fund that serves as main fund source for payment of valid deposit insurance claims.

Prospective buyers are advised to physically inspect the properties they are interested in, examine and verify the titles and other documents, and determine any unpaid taxes, fees or expenses before participating in the auction.

Interested bidders are required to submit a participation fee of P25,000 that would be deducted from the bid of the winning participant or returned to a losing participant immediately after the bidding.

The winning bidder should also be ready to pay the required 10 percent down payment while the balance of the purchase price is payable in full within seven working days from the receipt of Certificate of Highest Bid.

The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of 10 banks and placed them under the supervision of the PDIC so far this year. There include Xavier-Punla Rural Bank in Bukidnon, Community Bank (Rural Bank of San Alfonso) Inc., Community Rural Bank of Magsaysay (Davao del Sur) Inc., Rural Bank of Labrador (Pangasinan) Inc., Rural Bank of Magsingal (Ilocos Sur) Inc., Rural Bank of Pres. Roxas (North Cotabato) Inc., Rural Bank of Sta. Magdalena (Sorsogon) Inc., Siargao Bank (A Rural Bank) Inc., Surigaonon Rural Banking Corp., and Farmer’s Rural Bank Inc. in Batangas.

PDIC is tasked to gather, verify, and validate all bank records and valid deposits of closed banks. Valid deposit accounts are paid up to the maximum deposit insurance coverage of P500,000.

Depositors with valid deposit accounts with balances of P100,000 and below shall be eligible for early payment and need not file deposit insurance claims.

PDIC is a government instrumentality created in 1963 to insure the deposits of all banks. It exists to protect depositors by providing permanent and continuing deposit insurance coverage for the depositing public and help promote financial stability.