Last year, over P106 million was returned to individuals and businesses affected by the closure of two Philippine banks. The Philippine Deposit Insurance Corporation (PDIC) diligently processed claims following the central bank’s decisions to shut down Emerald Rural Bank, Inc. and Oriental Tamaraw Rural Bank of Naujan, Inc.
The payouts provided crucial financial relief to 3,736 depositors, representing funds held in 3,111 separate accounts. Emerald Rural Bank, located in Bulacan, and Oriental Tamaraw Rural Bank of Naujan, in Oriental Mindoro, both ceased operations after being taken over by the PDIC in January and May of last year, respectively.
PDIC streamlined the claims process, offering both formal claim filing and outright payments. Depositors meeting specific criteria – those not associated with outstanding loans from the closed banks and with updated contact information – were eligible for automatic payouts, simplifying a potentially stressful situation.
The majority of claims, a remarkable 92%, qualified for this expedited “outright payment” system. This translated to P44.4 million distributed swiftly, representing over 42% of the total funds disbursed. Payments were efficiently delivered through postal money orders and Land Bank of the Philippines Visa debit cards.
Speed was a priority; most outright payments were completed within just 10 to 13 working days after the PDIC takeover. For those depositors required to file formal claims, the process took slightly longer, averaging 15 to 20 working days from receipt of complete documentation, but still demonstrating a commitment to timely resolution.
While a significant portion of claims were resolved quickly, PDIC emphasizes that depositors of the closed banks still have time to file. Individuals and businesses have up to two years from the date of the takeover to submit their claims and access their insured deposits, ensuring a safety net remains available.
The remaining P62.5 million, representing 58% of the total payouts, was distributed to depositors who submitted the necessary claim documentation. This underscores the PDIC’s comprehensive approach to protecting depositors’ funds, even in the face of bank closures.
