Philippine Deposit Insurance Corp. (PDIC). INQUIRER FILE PHOTO
Proceeds from the sale of assets of corporates and closed banks grew by 4.5 percent in the first half of the year amid ongoing initiatives meant to speed up fundraising to help keep creditors and depositors protected, the Philippine Deposit Insurance Corp. (PDIC) said.
In a statement, it said it raised P162 million from the disposal of 151 corporate and closed bank assets via public biddings and negotiated sales in the six months ending June, higher than the year-ago total sales of P155 million.
The assets sold comprised of 141 residential lots, four agricultural lots, three commercial lots and three mixed residential/agricultural lots. Broken down, 101 were owned by closed banks and 50 were acquired assets of the PDIC.
The majority of properties sold were located in Bulacan (47 percent), Laguna (21 percent) and Metro Manila (11 percent). The PDIC said the total sales in the first semester surpassed the combined minimum disposal price for all 151 assets by 14.1 percent or P20 million.
READ: PDIC puts up for auction residential lots, motor vehicles
The PDIC, acting as the statutory receiver of closed banks, liquidates assets owned by shuttered lenders through public biddings and negotiated sales. The proceeds, in turn, are added to the closed banks’ funds held in trust by PDIC for distribution to creditors and uninsured depositors.
Meanwhile, the funds raised from the sale of corporate assets are channeled to the “Deposit Insurance Fund,” which the PDIC can tap to settle deposit insurance claims.
It said the 151 properties it sold in the first half exceeded the 27 assets it liquidated in the same period in 2023.
READ: PDIC asset sales raised P1.5B in 2022
To accelerate asset disposal, the PDIC said it began conducting electronic public biddings for corporate and closed bank assets during the pandemic, providing a “safe and convenient platform for interested buyers.”
Established in 1963, the PDIC is mandated to protect depositors and help maintain stability in the financial system by providing deposit insurance, co-regulating banks with the Bangko Sentral ng Pilipinas, and liquidating closed banks.