THE PHILIPPINE Deposit Insurance Corp. (PDIC) sold P277 million worth of 559 properties previously owned by closed banks last year, higher compared to the total sold in 2018.

In a press release yesterday, PDIC said last year’s total sales was 46% more than the 383 properties sold in 2018 and accounted for 34.9% of P792.8 million worth of assets offered for sale in various public biddings.

The state deposit insurer said last year’s sale also generated P69 million in premiums over the aggregate minimum disposal price of P208 million for properties offered for sale.

“Part of the responsibility of PDIC as Receiver of closed banks is to liquidate the banks’ assets to be able to settle claims of creditors and uninsured depositors as quickly and efficiently as possible, either through public biddings or negotiated sale,” PDIC President and CEO Roberto B. Tan was quoted as saying.

PDIC said the assets were disposed of via three regional public biddings held in Davao and Cebu City and 10 public biddings held in Manila in 2019 and consisted mostly of residential, commercial, and industrial lots, some of which have improvements. For 2019, sales also included a lahar lot, a commercial condominium unit and a number of motor vehicles.

The assets, which were mostly residential, commercial, and industrial lots and also included a lahar lot, a commercial condominium unit and a number of motor vehicles, were auctioned off via three regional public biddings held in Davao and Cebu City and ten public biddings held in Manila last year.

Proceeds from disposal of assets were added to the funds held in trust for closed banks to assist the shuttered banks’ creditors and uninsured depositors to recover their trapped funds.

“We continuously improve and innovate our services for the benefit of our customers and stakeholders. The conversion of non-cash portfolio is a major corporate initiative under our Strategy Map,” Mr. Tan added.

The state deposit insurer earlier reported that it paid a total of P1.18 billion in deposit insurance last year to 51,278 valid deposit accounts, covering 92.25% of the total claims from closed banks.

It took over a total of 11 banks last year following the closure orders issued by the Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP).

These banks were the Bagong Bangko Rural ng Malabang in Lanao del Sur, Inc., the Rural Bank of Mabitac in Laguna, Inc., The Palawan Bank (Palawan Development Bank), Inc., Valiant Bank, Inc. (A Rural Bank), the Rural Bank of Basey in Samar, Inc., the Rural Bank of Guihulngan in Negros Oriental, Inc., the East Coast Rural Bank of Hagonoy, Inc., the Rural Bank of Larena in Siquijor, Inc., the Rural Bank of Lemery, Inc., the AMA Rural Bank of Mandaluyong, Inc. and the Maximum Savings Bank, Inc. — Beatrice M. Laforga

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