P223M from sale of shuttered banks’ assets earmarked for clients left holding bag

The Philippine Deposit Insurance Corporation (PDIC) generated almost P250 million from the sale of assets in the first seven months of 2019 earning enough money to pay depositors and creditors left holding the bag by shuttered banks, the agency said on Wednesday (Aug. 28).

In a press statement, the PDIC said it made P223.1 million from the sale of properties of 533 closed banks in a total of six public auctions this year.

The pieces of property sold included 438 residential lots owned by Accord Savings Bank Inc., which is now closed. These lots are in Green Farm Royale Subdivision in Silang town, Cavite province.

Proceeds from the sale of closed banks’ properties are added to the pool of funds of these banks for distribution to creditors and uninsured depositors in accordance with the rules on concurrence and preference of credits.

The expeditious liquidation of assets is one of the strategic directions of the PDIC as liquidator of closed banks. To help ensure that recoveries from closed banks’ assets are maximized, PDIC sells assets via competitive biddings.

The agency encouraged interested buyers to visit the PDIC website for information on the inventory of available assets for sale.

Unsold assets from public biddings may be acquired by interested parties via negotiated sale. Prospective buyers may communicate with the PDIC through its public assistance department.

Established in 1963 by Republic Act 3591, the PDIC provides depositor protection and help maintains stability in the financial system by providing deposit insurance. Since 2009, the maximum deposit insurance coverage has stood at P500,000 per depositor./TSB