PDIC bidding out assets of shuttered banks

Philippine Deposit Insurance Corp. is seeking to raise a total of at least P190.1 million from the sale of 275 residential, agricultural and commercial lots that will be put up for auction in September.

The state-run PDIC is selling these assets that belonged to banks that had been shut down and placed under liquidation.

Of these, 202 lots are located in Gardenville Subdivision in Tiaong, Quezon province. These are previously owned by Hermosa Savings and Loan Bank Inc.

The Tiaong lots are being offered in blocks of six up to 18 lots each, with an aggregate area between 464 square meters (sqm) and 1,439 sqm per block.

These are being sold on an “as-is, where-is” basis, with floor prices ranging from P1.4 million to P4.1 million per block.

Also, there are 34 lots on the block, including 16 vacant residential lots, nine residential lots with improvements, and nine commercial lot with improvements. These are spread out across Metro Manila, Batangas, Bulacan, Nueva Ecija, Pampanga, Pangasinan, Quezon, Samar and Surigao del Norte. These have an area of between 100 sqm and 5,639 sqm and with floor prices ranging from P238,700 to P25.2 million.

Further, there are 39 mostly idle agricultural lots located in Aklan, Bataan, Batangas, Bulacan, Camarines Sur, Iloilo, Laguna, Leyte, Marinduque, Mindoro Occidental, Pangasinan, and Quezon. Their floor prices range from P167,300 to P14.5 million.

As the statutory receiver, the PDIC sells closed bank-owned assets through public bidding and negotiated sale. Proceeds from the liquidation of such properties are added to the pool of liquid assets of these banks for distribution to uninsured depositors and other creditors subject to the rules on concurrence and preference of credits.

The disposal of these assets increases the chances of uninsured depositors and creditors recovering funds trapped in the closed banks.

So far, since the start of this year, the Monetary Board (MB) has issued closure orders to eight rural banks.

In 2021, the highest policy making body of the BSP ordered shut 13 rural banks. In 2020, during the initial impact of the COVID-19 pandemic, the MB issued orders of liquidation on just five rural banks.
Before that, there were 11 banks shuttered in 2019, 12 in 2018, six in 2017, and 22 in 2016.