THE Bangko Sentral ng Pilipinas (BSP) has ordered a Lipa City-based Empire Rural bank closed and placed under receivership, state-run Philippine Deposit Insurance Corp. (PDIC) announced on Friday.
The rural bank, which is headquartered at in 154 C.M. Recto Avenue, Poblacion Barangay 4, Lipa City, Batangas, has been prohibited from doing business and its assets and affairs placed under the control of the PDIC.
Depositors of closed banks under PDIC receivership are entitled to be paid up to the maximum insurance coverage of P500,000.
As of December 31, 2017, the rural bank had 564 accounts with total deposit liabilities of P36.4 million. Total insured deposits amounted to P31.6 million or 86.8 percent of total deposits.
According to the PDIC, depositors with valid accounts of P100,000 and below are 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 obligations, and have incomplete or have not updated their addresses.
Depositors have until February 28, 2018 to update their records using forms to be distributed by PDIC representatives at the rural bank’s premises. The PDIC also announced that it would conduct a depositors-borrowers forum on March 5.
Empire Rural Bank is the second bank to be placed under PDIC receivership this year.
Last year, the Monetary Board closed down seven banks and placed them under PDIC receivership. In 2016, it closed down 22 banks.