THE Bangko Sentral ng Pilipinas (BSP) has ordered a Batangas-based rural bank closed and placed under receivership of the state-run deposit insurer.
In a statement on Friday, the Philippine Deposit Insurance Corp. (PDIC) said the five-unit Countryside Cooperative Rural Bank of Batangas was placed under its receivership on January 12 this year.
This means that the rural bank is now prohibited from doing business in the Philippines, with its assets and affairs placed under the control of the PDIC.
The rural bank’s head office is located in Kanluran, Batangas City. Depositors of closed banks under PDIC receivership are entitled to be paid up to the maximum insurance coverage of P500,000.
As of September 30, 2016, the rural bank had 10,552 accounts with total deposit liabilities of P193.2 million. Total insured deposits amounted to P167.7 million or 86.8 percent of total deposits.
According to the PDIC, depositors with valid deposit 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 January 27, 2017 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 January 25 to 27.
Countryside Cooperative Rural Bank of Batangas is the first bank to be placed under PDIC receivership this year.
In 2016, the Monetary Board closed down 22 banks and placed them under PDIC receivership. In 2015 it closed down 14 banks.