Termination and Reinstatement of Insured Status of Banks
Pursuant to the provisions in R.A 3591 as amended, and in relation to the PDIC
Amendment Rules and Regulations, PDIC issued the following guidelines on the
termination and reinstatement of insured status of banks due to non-payment of
assessment;
1. PDIC shall terminate the insured status of a bank upon its continued failure or
refusal to pay the assessment.
2. First demand letters shall be sent to banks through registered mail, thirty (30) days
after the 31 January and 31 July prescribed deadlines for filing the certified
statements and remitting the corresponding assessments. Interests charges at the
legal rate of 12% per annum, reckoned from due date/s shall be imposed upon
these banks.
3. Failure to comply within thirty (30) days after receipt of the first demand letter
shall continue willful failure or refusal of the bank to file the required certified
statement and pay the corresponding assessment and interest charges. Thereafter,
PDIC shall send the second demand letter through registered mail. Penalty
charges at twice the rate of interest charges of 24 % per annum shall be added
thereon, reckoned 30 days from receipt of the first de4mand letter.
4. Termination proceedings of the bank’s insured status shall start 30 days after
receipt by the bank of the PDIC’s demand letter.
5. The third and final demand letter shall be sent to the bank through registered mail.
6. The order termination shall shall be sent to the bank, by such mode of service as
may be expeditious and efficient, upon the expiration of the 30 day period from
date of mailing of the third and final demand letter.
7. The Corporation shall be publish the order of termination of the insured status in a
newspaper of general and/or local of three(3) consecutive days. The cost of
publication shall be chargeable to the bank. The bank shall give written notice of
such termination to each of the depositors at his last address recorded in the books
of the bank. Willful failure by the bank to do shall subject its directors and/or
officers to an administrative fine not exceeding one thousand pesos(P1000.00) per
day and/or render them criminally liable for violation thereof, which is punishable
by a fine of not more than twenty thousand pesos(P20,000.00) and by
imprisonment of not more than 5 years.
8. Failure of the bank for whatever reason to give written notice to t6he depositors
shall not in any way affect the validity and effectivity of the order of termination
of insured status against the depositors of the bank.
9. The insured deposits of each depositor in the bank as of the effective date of
termination, less all subsequent withdrawals/debit adjustments from any deposits
of such depositor, shall continue to be insured for a period of 90 days from the
date of such termination.
10. The bank whose insured status has been terminated shall not be advertise nor hold
itself out as having insured deposits unless, in the same connection, the bank shall
state with equal prominence. Any director/officer of such bank who violates or
causes he violation of the foregoing shall be criminally liable.
11. A bank whose insured status has been terminated may request for the
Reinstatement of its insured status by means of written application filed with the
Corporation.
The PDIC Board of Directors may approve such application based on a
recommendation that;
a. the cause or causes of termination of insured status has/have been corrected
b. that the bank may continue to operate with insurance cover depositors,
creditors, and the general public, thereby not exposing the Deposit Insurance
Fund to undue risk.
