State insurer Philippine Deposit Insurance CORP. (PDIC) hiked the amount of valid deposits of closed bank depositors eligible for outright payment to P50,000.
In a statement on Monday, PDIC said that its board of directors has approved to increase the amount from P15,000 to P50,000.
“Valid deposits eligible for payment without the need to file deposit insurance claims are accounts with balances of P50,000 and below, which have no outstanding obligations with the bank as of date of closure, and have complete and updated addresses in the bank’s records,” it stated.
The PDIC explained that historically, 84.5 percent of the total number of accounts in a closed bank have balances of P50,000 and below.
“It is therefore expected that under the new policy, only about 15 percent of a closed bank’s depositors will be required to file deposit insurance claims,” it said.
PDIC also noted that these are depositors who have account balances greater than P50,000 or have outstanding obligations with the closed bank; and those who do not have complete or updated addresses in the bank’s records as of date of closure.
“This increase will therefore make it even more convenient for most of the depositors of closed banks, because there will be no need to go to the site where PDIC conducts its field operations claims settlement to file claims,” it added.
Last year, the Monetary Board of the Bangko Sentral ng Pilipinas ordered a total of 18 banks closed and placed under the receivership of PDIC. This was lower than the 24 banks closed in 2012, where 120,000 depositors lost about P19.5 billion.
The PDIC attributed the lower number of shuttered banks last year to the current mergers and consolidation in the industry, particularly because of the Strengthening Program for Rural Banks Plus.