THE PHILIPPINE Deposit Insurance Corp. (PDIC) plans to dispose of 807 real properties and resolve 17,826 loan accounts of closed banks.

PDIC President and Chief Executive Officer Roberto B. Tan said the state deposit insurer plans to reduce its non-cash portfolio this year by using its electronic bidding process for properties.

“The proceeds from the disposal of the PDIC’s non-cash assets are added to the funds held in trust for closed banks to help increase the chances of closed-bank creditors and uninsured depositors to recover their funds,” the Department of Finance (DoF) said in a statement on Wednesday.

“Creditors’ claims are settled by PDIC as liquidator, in accordance with the rules on concurrence and preference of credits.”

PDIC has disposed of 2,917 real properties since 2019, 507 of which were sold by June this year.

Mr. Tan said that the deposit insurance fund, the capital and funding source for deposit insurance payments, stood at P234.84 billion as of July, increasing by 15% year on year.

The agency’s total assets went up by 3.6% to P302.84 billion in July, which was driven by assessment collections and income on investments.

Meanwhile, liabilities dropped by 22.8% to P68 billion.

“PDIC paid P470 million in insured deposits from four banks ordered closed by the Monetary Board (MB) from January to July 2021,” the statement said.

“The MB shut down Occidental Mindoro Rural Bank, Palm Tree Bank in Cagayan de Oro City, Rural Bank of Alimodian in Iloilo, and the Rural Bank of Caloocan.”

PDIC plans to settle claims on two more closed banks, the Rural Bank of Datu Paglas in Maguindanao and the Grand Agri Rural Bank in Lucena City, Quezon.

PDIC is an attached agency of the DoF. — Jenina P. Ibañez

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