MANILA - The unprecedented spate of closures of Legacy banks last year has prompted the Philippine Deposit Insurance Corp. (PDIC) to review and simplify its claims processes.
In a statement, PDIC President Jose Nograles ordered the review of the corporation's systems relative to claims processing so it can process huge numbers of accounts.
"Admittedly, our claims systems and processes were not structured to cope with the voluminous number of accounts involved in the almost simultaneous closure of the 12 Legacy banks," Nograles said.
Since PDIC's inception in 1963, Nograles said the corporation has seen such closures, which are "unparalleled in Philippine banking history." The 12 closed Legacy banks had deposits of around P14 billion in about 135,000 accounts, he said.
"Not surprisingly, the Legacy closures challenged our systems and procedures as well as our resources...We will henceforth enhance our systems to be able to process huge numbers of accounts," Nograles said.
A total of 25 banks were closed last year, while some 19 banks were shut down as of the first quarter of 2009. These successive closures, Nograles said, have stretched PDIC's resource to the limit.
Nograles stressed that PDIC is committed to pay all valid deposit insurance claims, but is challenged by its limited capacity to validate deposits and process claims.
Nograles said the PDIC has engaged top-notch consultant Professor Ronaldo Polancos of the De La Salle University College of Industrial Engineering to undertake a business process review of claims-related processes as well as a simplification of documentary requirements.
"Digital imaging is also being planned for the tons of bank records used for the examination and validation processes in the interest of efficiency. This will speed up the review of documents and records review as well conserve physical space," PDIC said.
In the meantime, PDIC appealed for patience from its depositors as the corporation continues to improve its claims processes.