• BSP shuts down Negros Occidental-based rural bank

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    THE Bangko Sentral ng Pilipcinas (BSP) has ordered the Negros Occidental-based Community Rural Bank of Magallon closed and placed under receivership of the state-run Philippine Deposit Insurance Corp. (PDIC).

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    In a statement over the weekend, the PDIC said the Monetary Board, the BSP’s policy-making body, placed the single-unit rural bank under receivership, in effect prohibiting it from doing business in the Philippines and placing its assets and affairs under PDIC’s control.

    The Community Rural Bank of Magallon head office is located in Moises Padilla, Negros Occidental. Depositors of closed banks under PDIC receivership are entitled to be paid up to the maximum insurance coverage of P500,000.

    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 have acted as co-makers of loans and have incomplete or have not updated their addresses.

    “They may update their addresses until November 28, 2016 using the Mailing Address Update Forms to be distributed by PDIC representatives at the bank premises,” it said.

    “For more information on the requirements and procedures for filing claims and settlement of loan obligations, all depositors and borrowers of the bank are enjoined to attend the Depositors-Borrowers’ Forum on December 2, 2016,” it added.

    Latest available records show that as of June 30, 2016, Community Rural Bank of Magallon had 1,315 accounts with total deposit liabilities of P28.5 million. Total insured deposits amounted to P24.5 million involving 85.9 percent of total deposit accounts.

    The Community Rural Bank of Magallon is the 20th 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.

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