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PDIC resolves more deposit requests and loan accounts in 2021 as process goes live

PHILIPPINE Deposit Insurance Corp. (PDIC) settled 19,184 deposit insurance claims and resolved more than 30,000 loan accounts from closed banks in 2021, the Department of Finance (DoF) said in a statement on Tuesday.

PDIC President and CEO Roberto B. Tan said in a report to PDIC Finance Secretary and Chairman of the Board Carlos G. Dominguez III that the implementation of depository arrangements payment systems has allowed PDIC to process deposit insurance claims more quickly.

Mr. Tan said the PDIC “will continue to expand the use of electronic methods of resolving insurance claims as part of society’s digitization efforts,” he said in a DoF statement on Tuesday.

Insurance claims from 10 banks involving around 3,000 accounts were settled between 17 and 22 days, faster than their target of 27 working days, Tan said.

Meanwhile, claims from two large banks with 3,000 to 10,000 accounts were settled in 37 to 40 business days, slightly better than the target of 41 business days.

Mr. Tan added that the 30,384 loan accounts resolved in 2021 were above their target of 17,826. PDIC resolved a total of 79,474 loan accounts between 2019 and 2021.

Meanwhile, paid insured deposits amounted to 471.15 million pesos in 2021, more than the 219.68 million pesos in the previous year.

Mr. Tan said that the implementation of the PDIC’s closed bank lending incentive program, which offThe ease of payment and the absence of penalties for borrowers from banks ordered to close have also improved the rate of resolution of loan accounts.

The program offers rebates to borrowers from closed banks whose loan principal balance is equal to or less than 1 million pesos and to those who can pay cash through a one-time settlement.

The PDIC also disposed of 1,141 properties in 2021, exceeding its target of 807. It manages an inventory of 32,000 properties and a five-year asset disposal program has been developed to expedite the process.

It cut documentary requirements for proposed mergers, consolidations and acquisitions of banks to 30 from 58, cutting processing time to 55 days from 160.

The PDIC’s Deposit Insurance Fund increased by 13.8 percent to 243.87 billion pesos in 2021, from 214.44 billion pesos the previous year. Meanwhile, its business assets stood at 305.86 billion pesos, up 12.4% year-on-year. Assessment collections from banks also increased by 8.3% to reach 29.81 billion pesos in 2021.

The PDIC is an agency attached to the DoF. A measure in Congress proposes amendments to its charter to place it under the Bangko Sentral ng Pilipinas and increase deposit insurance coverage. — TJT