NextGen Day

MANILA, Philippines — In 2021, the Philippine Deposit Insurance Corp. (PDIC) was able to considerably reduce its clearing time by settling a total of 19,184 deposit insurance claims and resolving over 30,000 loan accounts in closed banks thanks to the utilization of digital platforms.

Deposit insurance claims filed last year involving 10 banks with no more than 3,000 accounts each were settled in 17 to 22 working days, significantly faster than the PDIC’s target of 27 working days, according to PDIC president and CEO Roberto Tan in a report to Finance Secretary and PDIC Board chairman Carlos Dominguez III.

In the meantime, all deposit insurance claims made in two larger banks with about 3,000 to 10,000 accounts each were settled in 37 to 40 working days, which was faster than the target of 41 working days.

Insured deposits paid in closed banks increased from PHP219.68 million in 2020 to PHP471.15 million in 2021, according to Tan.

Tan revealed that the 30,384 loan accounts settled in 2021 were 70 percent more than its three-year aim of 17,826 loan accounts from 2019 to 2021.

A total of 79,474 loan accounts have been settled by the PDIC.

According to Tan, the PDIC’s aim of disposing of 807 real assets was met in 2021, when it finalized the sale of 1,141 real properties, increasing the total asset disposal to 3,551 since 2019.

The PDIC oversees a total of 32,000 real estate properties, with a five-year asset disposal plan in place to speed up the process.

Last year, the company continued to deploy electronic filing and payment arrangements for deposit insurance claims, as well as electronic bidding of properties as a new standard way of asset disposal, according to Tan.

The PDIC’s web-based claim form, as well as payment channels such as PesoNet, Instapay, and other electronic money issuers, are among these online channels.

In his report, Tan stated, “We also continued to employ digital media platforms and local information networks to offer fast and continuing information to depositors and other clients.”

He added that the PDIC’s Closed Bank Loan Incentive Program (CLIP), which allows borrowers of banks that have been ordered closed by the Monetary Board (MB) to make easy payments with no penalties, has also aided in the resolution of loan accounts.

CLIP provides significant reductions to closed-bank borrowers with principal loan balances of PHP1 million or less who choose to pay in one lump sum.

As part of the PDIC’s digitalization initiatives, Tan said the PDIC under the Duterte administration will continue to expand the usage of electronic forms of resolving deposit insurance claims.

The PDIC completed seven of its 16 main information and communications technology (ICT) projects in 2021, with the goal of boosting customer service and operational efficiency.

The corporation also helped to improve the ease of doing business by simplifying interagency processing of proposed bank mergers, consolidations, and acquisitions, reducing the number of paperwork required from 58 to 30 and decreasing the processing time from 160 to 55 days.

The PDIC also announced that the Deposit Insurance Fund (DIF) has grown by 13.8 percent from PHP214.44 billion in 2020 to PHP243.87 billion in 2021, indicating that the fund’s strength has been maintained.

Meanwhile, its corporate assets totaled PHP305.86 billion, up from PHP272 billion in 2020 by 12.4 percent.

Bank assessment collections increased by 8.3% in 2021, from PHP27.52 billion in 2020 to PHP29.81 billion.

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