PDIC to start processing claims of Banco Filipino depositors

CEBU, Philippines - Following the takeover of the Philippine Deposit Insurance Corporation (PDIC) over the ill-fated Banco Filipino, the state-owned bank insurance agency assured depositors of the bank that they will pay all valid deposit insurance claims as soon as possible.

PDIC president Jose C. Nograles said that through the implementation of Monetary Board Resolution No. 372, PDIC is now the receiver of Banco Filipino.

Insurance payment for accounts with balances of P5,000 and below comprising about 53 percent of the bank’s total deposit accounts of 176,313 is targeted to start a week after the takeover.

According to Nograles, this will be made through postal money order (PMO) mailed directly to depositors via registered mail. This is to assure the Banco Filipino depositors that their money will be given back as soon as possible.

These PMOs can be encashed at any of the over 1,400 postal offices and over 300 Land Bank of the Philippines (LBP) branches nationwide.

“Holders of these accounts who have no outstanding loans and whose address is current in the bank records do not need to file deposit insurance claims,” Nograles said.

Depositors of troubled Banco Filipino Savings and Mortgage Bank with deposits of P5,000 or less will be the first ones to get their money back, now that the Philippine Deposit Insurance Corp. (PDIC) has taken over the bank.

For depositors with account balances of more than P5,000, claim forms will be distributed during Depositors Forums to be conducted nationwide next week.

During the Forums, procedures, instructions and requirements for filing claims will be discussed. The schedule for claims receiving will be announced shortly after the examination of bank records.

In 2009, the Philippine Deposit Insurance Corporation (PDIC) has announce the increase of its maximum deposit insurance coverage (MDIC) for bank deposit to P500 thousand.

The doubling of the MDIC through the passage of Republic Act No. 9576 is a means to promote and safeguard the interests of the depositing public, PDIC announced earlier.

About 97.2 percent of total deposit accounts in the banking system is protected with deposit insurance.

Meanwhile, the Cebu Bankers Club (CBC0 maintained its advice to depositors to stay calm and not panic, as everything will be handled carefully by the PDIC.

Banco Filipino closed operations early this week. In a report, a Banco Filipino official was quoted saying that the bank is "fixing something with the BSP".

Banco Filipino reportedly has been seeking P25 billion in rehabilitation assistance and P19 billion in damages from the BSP for the 1985 closure that the Supreme Court said was illegal.

Last week, Banco Filipino thinly traded stock was de-listed by the stock exchange, together with four other companies, for failure to submit regular reports.

Bangko Sentral ng Pilipinas (BSP) Deputy General Counsel Elmore Capule said this early Friday even as he stressed that the BSP's “immediate concern is to secure the records of the bank lest they be tampered or lost."

He said the BSP expects the processing of claims to be fast, as Banco Filipino (BF)’s records are computerized.

According to him, the PDIC took over the BF Thursday night, shortly after the BSP ordered the bank's closure and placed it under the receivership.

But those with deposits higher than P500,000 may have to wait to get any amount in excess of P500,000 back as the PDIC can only insure deposits of up to P500,000.

“Dadaan pa sa korte yan. Yan ang pagkakataon habang kino-convert sa asset (There will be court proceedings, while the bank’s assets are converted to cash)," he said.

Also, Capule asked depositors for understanding for the BSP’s move, saying it could not return depositors’ money as long as the bank remained open.

“Kung hindi namin isinara di sila pwede bayaran ng PDIC. Hanggang bukas ang bangko hanggang walang bayad galing sa PDIC," he said.

Procedures

Capule said depositors can proceed to Banco Filipino’s branches and fill out application forms to get their money back. He said PDIC teams will be at the branch offices.

 He said those who want to go to the bank’s branches must bring their passbooks, automated teller machine (ATM) cards, deposit slips, and other proofs that they are depositors.

Charges vs BF officials eyed

Capule said the BSP is studying whether to file charges against BF's officials for the bank’s closure.

“We are studying if the bank’s officers had committed actions in violation of administrative, criminal and civil laws. We are investigating the matter," he said.

Capule also belied BF official Perfecto Yasay Jr.’s claim that the BSP is to blame for the bank's woes because of its “mismanagement."

He argued that the BSP has nothing to gain from mismanaging Banco Filipino because taxpayers will have to shoulder the costs of reimbursing depositors if the bank is closed.

 “Pag nagsara yan sino ang magbabayad ng deposits niyan, PDIC, diba? Napaka-irresponsible naman namin kung pabagsakin ang bangko, tapos pababayaran sa gobyerno ang deposito. Mga P9 billion ang insured deposits dito," he said.

(If it closes, who will pay for the deposits, the PDIC, right? We would have been very irresponsible if we deliberately forced the bank’s closure then have the government shoulder the costs. The bank has P9 billion in insured deposits.)

Also, he belied Yasay’s claim the BSP managed the bank through a controller, adding that the BSP merely has an enhanced monitoring team that acts as an external auditor, with no powers other than keeping watch over the bank’s operations," he said. (FREEMAN)