What is the PDIC?
- Established on June 22, 1963 by RA 3591
- Under this Charter, the corporation is mandated to give bank depositors protection and financial stability by providing permanent and continuing deposit insurance.
- Corporations shall insure deposits of all banks which are entitled to insurance.
What are the functions of PDIC?
- Deposit and Insurance
- Examination and Resolution
- Receivership and Liquidation
What are the functions and obligations in Receivership?
- The functions and obligations:
a. Gather and take charge of all assets and liabilities of the institution
b. Exercise general powers
c. Determine in not later than 90 days from take over whether the institution should be rehabilitated or may resume business with safety
What is the Maximum Deposit Insurance Coverage of PDIC?
- Since June 2009, the MDIC is P500,000 per depositor per bank.
What are covered by the PDIC?
- PDIC insures valid deposits in domestic offices of its member-banks.
How to determine if deposits are considered valid?
- Upon determination by PDIC, deposits are recorded in the bank’s records and are evidenced by inflow of cash.
How to determine if deposits are considered valid?
- Upon determination by PDIC, deposits are recorded in the bank’s records and are evidenced by inflow of cash.
What specific risks to a bank does PDIC cover?
covers only the risk of bank closure ordered by the Monetary Board; thus bank losses due to theft, fire, closure by reason of strike or existence of public disorder, revolution or civil war are not covered
What are not covered by the PDIC?
- Under RA 9576, PDIC will not pay deposit insurance for the following accounts or transactions:
a. ) Investment products such as bonds, securities, and trust accounts.
b. ) Deposit accounts which are unfunded, fictitious, or fraudulent.
c. ) Deposit products constituting or emanating from unsafe and unsound banking practices.
d. ) Deposits that are determined to be proceeds of an unlawful activity as defined under AMLA.
What are the provisions for joint accounts?
- Joint account regardless of whether the conjunction “and”, “or”, “and/or” is used, shall be insured separately from any individually-owned deposit accounts.
- If the account is held jointly by two or more natural or juridical persons or entities, the maximum insured deposit shall be divided into as many equal shares as there are individuals, juridical person or entities, unless a different sharing is stipulated in the document of deposit.
- If the account is held by a juridical person or entity jointly with one or more natural persons, the maximum insured deposit shall be presumed to belong entirely to such juridical person or entity.
When are the depositors not required to file deposit insurance claims?
- Depositors with valid deposit accounts with balances of P100,000 and below are not required to file claims, provided they:
1. ) Have no obligations with the closed bank, or have not acted as co-makers of these obligations, or are not spouses of the borrowers;
2. ) Have complete mailing address found in the bank records or have updated their addresses through the Mailing Address Update Form or PDIC before the start of the onsite claims settlement operations; and
3. ) Have not maintained the account under the name of business entities.
When are claims filed?
- Filed during the onsite Claims Settlement Operations (CSO) period, as announced in the Notice to Depositors published in national or local newspapers, or posted in the bank premises and conspicuous places within the locality, and in the PDIC website.
- Claims should be filed within the two-year prescriptive period after PDIC’s takeover of the closed bank.
Who are required to file deposit insurance claims?
Depositors:
a. ) With valid deposit accounts with balances of more than P100,000;
b. ) With outstanding obligations with the closed bank either as borrower, co-maker, or as spouse of borrower;
c. ) With incomplete mailing address found in the bank records, or failed to update them through MAUF;
d. ) With accounts maintained under the name of business entities;
e. ) With accounts not eligible for early payment, regardless of type of account and account balance per advice of PDIC; and
f. ) Who are deceased whose filing of claim is through the legal heirs.
Who should sign the claim form?
A. For depositor 18 years old and above – DEPOSITOR
B. For depositor below 18 years old – PARENT
C. In the case of “by” account – AGENT
D. In the case of “In Trust For (ITF)” account – TRUSTEE
E. In the case of joint accounts – EACH DEPOSITOR/AACCOUNT HOLDER for account maintained as “Or”, “And/or” or “And”
F. For business entities, deceased depositors and person who has Special Power of Attorney (SPA) from the depositor – AUTHORIZED REPRESENTATIVES
Claims that are incomplete and lacking:
- The PDIC will not accept claims that are incomplete or lacking in requirements and may also require additional documents in the course of claims processing.
Claims that are incomplete and lacking:
- The PDIC will not accept claims that are incomplete or lacking in requirements and may also require additional documents in the course of claims processing.
Documents executed abroad
- Should be duly authenticated by the Philippine Consulate nearest the residence of the depositor.
What is the authority of the PDIC as the receiver if the unpaid interest rate is deemed unreasonably higher compared to market rates?
- As Receiver, the PDIC has the authority to adjust the unpaid interest rate on deposits.
What happens if the closed bank fails to properly turn over to the PDIC their complete records?
- The standard procedures for claims settlement may not apply. Without the complete records, the PDIC will not be able to conduct the validation process for bank deposits, a requirement before deposit insurance claims are paid.
