THE Bangko Sentral ng Pilipinas (BSP) has ordered a Negros Oriental-based rural bank closed and placed under receivership of the state-run deposit insurer.
In a circular, the central bank said the Monetary Board, its policy-making body, placed the single-unit Rural Bank of Siaton Inc. under the receivership of the Philippine Deposit Insurance Corp. (PDIC).
The Monetary Board said the rural bank is now prohibited from doing business in the Philippines, with its assets and affairs placed under the control of the PDIC.
Rural Bank of Siaton’s head office is located in Poblacion Siaton, Negros Oriental.
Depositors of closed banks under PDIC receivership are entitled to be paid up to the maximum insurance coverage of P500,000.
As of March 31, 2016, Rural Bank of Siaton had 1,301 accounts with total deposit liabilities of P46.6 million. Total insured deposits amounted to P40.7 million or 87.3 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.
“PDIC will start mailing payments to concerned depositors at their addresses recorded in the bank by the third week of July 2016,” the insurer said.
Depositors have until July 14, 2016 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 fourth week of July.
The PDIC also announced that it would conduct a depositors-borrowers forum on July 19. It urged depositors to attend so they could verify if they are eligible for early payment.
Rural Bank of Siaton is the 12th rural bank to be placed under PDIC receivership this year.
In 2015, the Monetary Board closed down 14 banks and placed them under PDIC
receivership. In 2014, it closed down 15 banks.