Thu, 21 Nov 2019

Monetary Board shuts down Rural Bank of Larena

Philippine Information Agency
18 Oct 2019, 16:38 GMT+10

SIQUIJOR, Oct. 11 (PIA) -- The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) prohibited Rural Bank of Larena (Siquijor), Inc. from doing business in the Philippines through MB Resolution No. 1570.A dated Oct. 10, 2019, according to a press release from the Philippine Deposit Insurance Corporation (PDIC).

The MB Resolution also directed the PDIC to proceed with the takeover and liquidation of Rural Bank of Larena.

In an interview with PDIC Corporate Executive Officer I Nathanael Tumbokon, he said the order to close the bank was issued on Oct. 10 and implementation was made the day after, Oct. 11, with the PDIC already taking over.

Rural Bank of Larena is a single-unit rural bank located on Bonifacio St., Brgy. North Poblacion, Larena, Siquijor.

Latest available records show that as of June 30, 2019, Rural Bank of Larena has 482 deposit accounts with total deposit liabilities of P12.9 million, of which 96.25 percent or P12.4 million are insured deposits, the PDIC release said.

PDIC assured depositors that all valid deposits and claims shall be paid up to the maximum deposit insurance coverage of P500,000.

Individual account holders of valid deposits with balances of P100,000 and below do not need to file deposit insurance claims, provided they have no outstanding obligations or have not acted as co-makers of obligations with the said bank.

Individual depositors must ensure that they have complete and updated addresses with the bank.

PDIC representatives will be distributing Mailing Address Update Forms at the bank premises and depositors may submit the forms until Oct. 16, 2019.

For business entities and all other depositors who are required to file claims for deposit insurance, the schedule for filing of claims will be announced through posters in the bank premises and in other public places, the PDIC website www.pdic.gov.ph, and PDIC's official Facebook account.

PDIC also reminded borrowers to continue paying their loan obligations with the closed Rural Bank of Larena and to transact only with designated PDIC representatives at the bank premises.

For more information on the requirements and procedures for filing of claims for deposit insurance and settlement of loan obligations, all depositors and borrowers of the bank are enjoined to attend the Depositors-Borrowers' Forum on Oct. 22, 2019.

Details will be posted at the bank premises and in other public places.

Pursuant to Section 13 of R.A. 3591, as amended, PDIC shall likewise accept Letters of Intent from interested banks and non-bank institutions for possible Purchase of Assets and Assumption of Liabilities (P&A) as a mode of liquidating Rural Bank of Larena within 60 days from PDIC takeover subject to compliance with the requirements prescribed under the Guidelines in Pre-qualifying Proponents and Evaluating the Proposals for Purchase of Assets and Assumption of Liabilities Mode of Liquidating Closed Banks posted in the PDIC website.

All stakeholders and interested parties may communicate with PDIC Public Assistance personnel stationed at the bank premises or call the PDIC Public Assistance Hotline at (02) 8841-4141 or the Toll Free Hotline at 1-800-1-888-PDIC (7342) for those outside Metro Manila.

Inquiries may also be sent by e-mail to pad@pdic.gov.ph or via private message to the official PDIC Facebook account at www.facebook.com/OfficialPDIC or visit www.pdic.gov.ph.

PDIC was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance.

Effective June 1, 2009, the maximum deposit insurance coverage is P500,000 per depositor.

All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together.

A joint account shall be insured separately from any individually-owned deposit account. (rac/PIA7-Siquijor with PDIC PR)

More Philippines News

Access More

Sign up for Philippines News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!