State-owned Development Bank of the Philippines (DBP) has signed a memorandum of agreement with the Philippine Deposit Insurance Corporation (PDIC) to facilitate the payment of insurance claims to depositors of closed banks, a top official said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said that the bank’s Multi-Channel Disbursement Facility (MCDF) provides additional claim payment options for depositors including intrabank credit services and payment through PESONet.
“DBP is collaborating with PDIC in this initiative to further optimize the use of technology to provide more efficiency and convenience in the delivery of the government’s financial obligations,” Herbosa said.
DBP is the fifth largest bank in the country in terms of assets and has a network of 131 branches and 12 branch-lite units which are mostly situated in underserved areas of the country.
The intrabank credit facility of DBP’s MCDF allows PDIC to credit insurance claims directly to the DBP accounts of depositors. Under PESONet, PDIC may transfer the claims of depositors directly to their accounts in other banks, or with electronic money issuers (EMIs).
PDIC is the government instrumentality mandated to protect the depositing public and promote financial stability through deposit insurance of up to P500,000 per depositor per bank. Deposit insurance is a safety net and is paid by PDIC to depositors of banks ordered closed by the Monetary Board of the Bangko Sentral ng Pilipinas.
DBP Senior Vice President for Branch Banking George S. Inocencio said that this latest collaboration with PDIC reflects the bank’s commitment to be responsive to the evolving banking needs of the depositing public and aims to bring essential financial services closer to more Filipinos.