Uncooperative lender hampers deposit claims process

It is important that we pay the correct deposit insurance (because) what we are paying are public funds which we are all accountable for.

The processing of deposit claims against AMA Rural Bank of Mandaluyong, Inc. could take long as management refused to turn over its records to the state-run Philippine Deposit Insurance Corp. (PDIC).

The Bangko Sentral ng Pilipinas (BSP) earlier placed AMA Bank under receivership by the PDIC on 8 November.

PDIC executive vice president Ma. Ana Carmela Villegas said that since they took over, bank employees refused to cooperate, making it difficult for the regulator to process deposit claims.

“Since then, the bank employees refused to account for and turn over to the PDIC the records under their individual accountabilities. Without these records, the PDIC will be unable to immediately pay the claims of depositors for insured deposits,” Villegas told reporters at a news briefing in Makati City.

“The PDIC cannot overemphasize the importance of the bank employees’ compliance as they are mandated by law,” she said.

The PDIC executive said latest records show AMA Bank with total deposits of P1.4 billion comprised of 8,434 deposit accounts.

“For a closed bank of this size, the PDIC pays the depositors up to 15 working days from date of takeover,” she quickly added.

Moreover, Villegas said the PDIC has issued 65 demand letters to concerned individuals, giving them 24 hours upon receipt to comply.

“Until the bank employees comply, the payment schedule of insured deposits shall further be delayed. The PDIC will not hesitate to use the full force of the law to safeguard the interest of the depositing public,” she reiterated.

Likewise, PDIC senior vice president Romeo Mendoza Jr. stressed the importance of AMA Bank employees’ cooperation as this will help them quickly identify the valid deposits of the lender.

“It is important that we pay the correct deposit insurance (because) what we are paying are public funds which we are all accountable for. It is important to establish that what we are paying is correct and that the fund (goes to the right person),” Mendoza said.

According to him, they will hold a series of meetings for the bank’s clients starting 21 November to provide the necessary updates and explain to concerned stakeholders the full extent of their situation.

He said the timeline to which they could process the claims remains in question as they await the full cooperation of AMA Bank’s employees in cross examining the records and identifying valid deposit accounts.