The Philippine Deposit Insurance Corporation (PDIC) sold P277 million worth of properties previously owned by 559 closed banks last year, higher than the total sold in 2018.

In a statement issued on Monday, PDIC said that last year’s total sales reached 46% more than the 383 properties sold in 2018 and considered for 34.9% of P792.8 million worth of assets put up for sale in different public biddings around the country.

The state deposit insurer said last year’s sale also generated P69 million in premiums over the aggregate minimum disposal price of P208 million for properties offered for sale.

“Part of the responsibility of PDIC as Receiver of closed banks is to liquidate the banks’ assets to be able to settle claims of creditors and uninsured depositors as quickly and efficiently as possible, either through public biddings or negotiated sale,” PDIC President and CEO Roberto B. Tan said.

To adapt assets under its care as receiver of closed banks, PDIC pursued aggressive asset marketing through different on-ground and online avenues.

The profit from asset disposal initiatives is added to the funds held in trust for closed banks to help increase the chances of closed bank creditors and uninsured depositors to recover their trapped funds, according to a statement from the PDIC. Creditors’ claims are settled by the PDIC as liquidator, in accordance with the rules on unanimity and preference of credits.

Proceeds from disposal of assets were added to the funds held in trust for closed banks to assist the shuttered banks’ creditors and uninsured depositors to recover their trapped funds.

“We continuously improve and innovate our services for the benefit of our customers and stakeholders. The conversion of non-cash portfolio is a major corporate initiative under our Strategy Map,” Tan added.

The state deposit insurer earlier reported that it paid a total of P1.18 billion in deposit insurance last year to 51,278 valid deposit accounts, covering 92.25% of the total claims from closed banks.

It took over a total of 11 banks last year following the closure orders given by the Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP).

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