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PDIC to help depositors affected by bank holidays


MANILA, Philippines – State deposit insurers on Sunday assured that they will assist depositors of rural banks that have recently declared bank holidays. A GMA Flash Report said Philippine Deposit Insurance Corp. (PDIC) president Jose Nograles has assured that his office is drawing up measures for a swift payout to depositors of closed banks under its receivership. The receivership order meant the responsibility of recouping the bank’s unpaid loans has been transferred to the PDIC. Nograles said the PDIC augmented its workforce to speed up the process of verifying the legitimacy of depositors’ claims. “As a matter of procedure, PDIC conducts examination to validate claims…However, the sheer volume of accounts involved would mean a longer time would be needed,” Nograles said. Nograles said the PDIC will soon release a schedule of the payouts, adding that depositors of closed banks under its receivership will receive a P260,000 safety deposit guarantee. Last Thursday, the Bangko Senral ng Pilipinas (BSP) announced that eight rural banks have declared bank holidays, three of which have been taken over by PDIC. The BSP said Negros Oriental-based Rural Bank of Bais, Cebu-based Pilipino Rural Bank and Rural Bank of San Jose in Batangas have been placed under PDIC’s receivership. Another rural bank, the Rural Bank of Parañaque, was earlier reported to have been placed under its receivership. The four other banks that have been declared on holiday include the Philippine Countryside Bank based in Cebu, Dynamic Bank (Rural Bank of Calatagan) in Batangas, San Pablo City Development Bank and Nation Bank in Bacolod City. Operations are temporarily suspended when a financial institution declares a bank holiday. The Flash Report, however, quoted BSP officials as saying that depositors of closed banks should not yet panic, saying that declaring a holiday does not necessarily indicate bankruptcy. - GMANews.TV
Tags: bankholidays
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