State deposit insurer Philippine Deposit Insurance Corp. (PDIC) built up its Deposit Insurance Fund (DIF) to P216.85 billion in 2020, the Department of Finance (DOF) said Friday.
In a statement, the DOF said the PDIC was also able to settle 100% of the 7,072 valid deposit insurance claims within its target turnaround time (TAT) for banks ordered closed in 2020.
The DIF represents PDIC’s overall capacity to respond to insurance calls due to bank failures, according to the Finance Department.
It added that the prompt settlement of deposit insurance claims, on the other hand, provides affected depositors the needed relief.
Citing PDIC President Roberto Tan’s report to Finance Secretary Carlos Dominguez III, the DOF said the state deposit insurer posted a 10.3% growth or by P20.33 billion in its DIF from P196.52 billion in 2019.
“The increase resulted in an adequacy level of 6.91% in terms of ratio of the DIF to the banking system’s estimated total insured deposits. The ratio was above the minimum target of 5.5% for 2020,” Tan said.
The PDIC’s DIF consists of reserves for insurance losses of P193.64 billion, retained earnings of P20.21 billion, and Permanent Insurance Fund of P3.0 billion.
The PDIC also reported that of the total deposit insurance claims involving 7,072 deposit accounts in five banks closed in 2020, 6,733 accounts involved deposits of P100,000 and below, were settled within target turn-around-time to eligible depositors, while 339 were for deposits with balances of more than P100,000.
To support the government’s COVID-19 response efforts and to comply with the provisions of the Bayanihan 1 and 2 laws, the PDIC extended the statutory deadlines for filing of deposit insurance and creditors’ claims; granted relief measures to lessees, borrowers, and property buyers; and swiftly addressed the settlement of special claims, according to the DOF. — DVM, GMA News