THE Monetary Board has ordered the two rural banks based in Pangasinan and Camarines Sur closed and placed under the receivership of the state-run deposits insurer.
In circulars released on Monday, the central bank said the Monetary Board placed the Rural Bank of Caba (La Union) and Peñafrancia Rural Bank of Calabanga (Camarines Sur) Inc. under the Philippine Deposit Insurance Corp. (PDIC).
The Monetary Board said the rural banks are prohibited from doing business in the Philippines, placing its assets and affairs under the PDIC.
Depositors of closed banks under PDIC receivership are entitled to be paid up to the maximum insurance coverage of P500,000.
According to the PDIC, depositors with valid deposit accounts of P100,000 and below shall be eligible for early payment and need not file deposit insurance claims, except when they have outstanding obligations with the closed bank or acted as co-makers of the obligations and have incomplete or have not updated their addresses.
The Rural Bank of Caba and Peñafrancia and the Rural Bank of Calabanga Inc. is the 13th and 14th rural bank, respectively, to be placed under PDIC receivership this year.