MANILA, Philippines–Regulators are puzzled over thousands of depositors of recently closed banks that seem to have vanished into thin air, failing to file claims to get their money back.
The state-owned Philippine Deposit Insurance Corp. (PDIC) noted the rising number of deposit accounts in shuttered banks that have simply gone unclaimed, leaving millions of pesos in cash sitting idle.
Left unclaimed, this cash may end up being tied up as the fates of closed banks are resolved by local courts.
In a statement on Tuesday, the PDIC said estimated deposit insurance claims collectively amounting to P21.2 million for 4,622 accounts have not been filed by depositors of Rural Bank of President M.A. Roxas (3,023 accounts), Gulf Bank in Lingayen, Pangasinan (1,544 accounts) and Cavite Rural Banking Corp. (55 accounts).
The three banks were ordered shut by the Bangko Sentral ng Pilipinas (BSP) last March, April and May, respectively.
As the banking industry’s post-mortem regulator, the PDIC is tasked to oversee the assets of these banks after their closure. It is also the PDIC’s duty to return deposits to their owners. Under the law, each deposit is insurable up to P500,000.
The PDIC’s call comes more than six months after the last of these three banks were ordered closed. Depositors have up to two years after a bank’s closure to file insurance claims.
“After the said dates, PDIC, as deposit insurer, shall no longer accept any deposit insurance claim,” the PDIC said in a statement. “Instead, the depositors shall file their claims with the PDIC as receiver and liquidator of the closed banks.”
Payment of these claims will be based on the realizable value of the assets of the closed banks, if any. Depositors will be paid following the priority and preference of credits upon approval of the liquidation court.
The PDIC reported that as of Oct. 31 this year, it had paid P27.6 million for Rural Bank of President M.A. Roxas, P333.7 million for Gulf Bank and P66.6 million for Cavite Rural Bank, or a total of P427.8 million in deposit insurance claims to depositors of the three closed banks involving a total of 14,547 accounts.