Recently, a reputable bank named Banco Filipino has been taken over by the Philippine Deposit Insurance Corporation or PDIC due to bank run. Apparently, the bank claims they have been a victim of smear campaign by the Bangko Sentral ng Pilipinas (BSP) which caused panic on its depositors that a large number of them took out their savings all at the same time (hence, a case of a bank run.)
But whatever the case is, the most important question to ask is, how would its depositors take their money out, now that the bank has been declared closed and its assets seized by the BSP?
This issue is close to me because I have a family member who has a time deposit account with Banco Filipino, and we are all discussing on how to get back the savings that had been put on the time deposit account on this bank that just closed.
Since depositors of Banco Filipino are insured by the PDIC, legitimate depositors can file their insurance claims at the said corporation. For deposits of P5,000 or less, the process will take place in the next few weeks, however for depositors with account above the insured amount of P500,000 the process might take up to 4 months.
Below are the steps outlined by PDIC on claiming for deposit insurance:
STAGE 1 – Examination of Deposit Accounts
Deposit accounts are examined and validated against records of a closed bank upon takeover.
STAGE 2 – Filing of Claims
Filing of claims for deposit insurance by the depositor following the steps laid down in the Notice to the Depositors published by the PDIC.
STAGE 3 – Evaluation of Claims
Filed claims are evaluated by the PDIC in accordance with established guidelines.
STAGE 4 – Decision on the Claims
Claims are resolved by the PDIC in accordance with established guidelines.
STAGE 5 – Reconsideration of Denied Claims
1. Depositor(s) with claims wholly or partially denied may request for a reconsideration within 60 days from receipt of the notice of denial of their claim(s).
2. The request must be in writing. It must be accompanied by a duly notarized affidavit together with documents that would support the deposit(s) made in the bank. The supporting documents must be new evidence that have not been submitted at the time the claims were filed.
3. Request for reconsideration filed after the abovementioned 60-day period shall no longer be entertained by the PDIC and the decision of the PDIC denying such claim(s) shall be deemed final and executory.
This bulletin (#2010-31) was issued to the general public by PDIC President Jose C. Nograles
The link to this bulletin is found at the PDIC website: Claims for Deposit Insurance
One lesson to learn from the Banco Filipino experience would be, to not keep a deposit in the bank of amount greater than the insured amount. From what I’ve read so far, the amount in excess of the insured amount has no guarantees of being returned back to the depositor. It would be a shame to lose that hard earned money.