State-run Philippine Deposit Insurance Corp. (PDIC) said it posted a double-digit growth in deposit insurance fund (DIF) last year and fully settled all valid claims within the target turnaround time (TAT).

In a report submitted to Finance Secretary Carlos G. Dominguez III, PDIC President Roberto Tan said that their DIF increased by 10 percent to P216.85 billion last year from P196.52 billion a year earlier.

Tan also said that PDIC settled all 7,072 valid deposit insurance claims within the target TAT for banks ordered closed in 2020. 

The DIF represents PDIC’s overall capacity to respond to insurance calls due to bank failures. The prompt settlement of deposit insurance claims, on the other hand, provides affected depositors the needed relief. 

The PDIC’s DIF adequacy level stood at 6.91 percent last year, above the minimum target of 5.5 percent for 2020.
Tan said that PDIC will endeavor to maintain adequate DIF cover at prudential level.

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 with deposits of P100,000 and below, were settled within TAT to eligible depositors. 

Another 339 deposits with balances of more than P100,000 were also settled on time by PDIC last year, Tan said.

As liquidator of closed banks, the PDIC was also able to cut its non-cash portfolio by reducing its closed bank loans by 12,502 accounts last year, exceeding its target of 12,121 accounts for 2020.  

Source: Manila Bulletin (