The Philippine STAR 08/22/2006
The Philippine Deposit Insurance Corp. (PDIC) published a regulatory issuance and operations manual recently prescribing standards of record keeping of bank deposits for all member banks.
PDIC Regulatory Issuance 2006-01 on deposit record keeping implements Section 9(d)(1) of Republic Act 9302 stipulating that each insured bank should maintain a true and accurate record or statement of its daily deposit transactions consistent with the standards set by the Bangko Sentral ng Pilipinas (BSP) and the PDIC.
“Proper record keeping by banks will greatly assist PDIC and the Bangko Sentral ng Pilipinas (BSP) in their monitoring operations. This is seen to contribute to banking stability and ultimately, strengthening of the financial system,” the PDIC said in a statement.
With the new regulation, banks are required to submit the required operations manual on record keeping of deposits, features of computerized database, schedule of deposit products, and bank certification within 30 days from the date of the issuance’s effectivity. Then, the schedule of deposit products and the required bank certification will be submitted on a semestral basis, i.e., Jan. 31 and July 31 of each year.
“Orderly record keeping is vital to prompt deposit insurance payout. Properly maintained records can expedite insurance payouts,” it added.
Once BSP orders the closure of a bank, the PDIC will pay insured deposits as soon as possible. For the past two years, it maintained a single digit turnaround time. This means that claims servicing starts within less than 10 days from date of closure.
However, there are instances when PDIC’s efforts are hampered due as bank records are missing or were not maintained properly. Hence, its interest in accurate bank record keeping.
PDIC RI 2006-01 will take effect on Aug. 30 this year. It is also posted at PDIC’s official website www.pdic.gov.ph.