THE Monetary Board has ordered the closure of the Rural Bank of Buguias (Benguet), Inc., placing it under receivership of the state deposit insurer.
In a statement on Monday, the Philippine Deposit Insurance Corp. (PDIC) said it would be gathering, verifying and validating the records of the six-unit rural bank.
The Rural Bank of Buguias’ head office is located in Abatan, Buguias, Benguet. Its five branches are in Cervantes, Ilocos Sur; Kabayan and La Trinidad towns in Benguet; and Bauko and Tadian towns in Mountain Province.
PDIC assured depositors that all valid deposits would be paid up to the maximum insurance coverage of P500,000.
As of June 30, 2015, the Rural Bank of Buguias had 16,244 accounts with total deposit liabilities of P347.4 million. Total insured deposits amounted to P303.1 million or 87.2 percent of total deposits.
Depositors with valid deposit accounts of P100,000 and below need not file deposit insurance claims, except when they have outstanding obligations with the Rural Bank of Buguias or acted as co-makers of the obligations, and have incomplete or have not updated their addresses.
“PDIC targets to start mailing payments to these depositors at their addresses recorded in the bank by the second week of November,” the insurer said.
Depositors have until November 5, 2015 to update their records using forms to be distributed by PDIC representatives at the rural bank’s premises.
For depositors required to file deposit insurance claims, the PDIC aims to start settlement operations by the third week of November.
The PDIC also announced that it would be conducting a depositors-borrowers forum from November 6 to 9. It urged depositors to attend so that they could verify if they were eligible for early payment.
The Rural Bank of Buguias is the 11th rural bank to be placed under PDIC receivership this year. The Monetary Board closed a total of 14 rural banks in 2014.