THE Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has ordered the closure of the Rural Bank of Magsingal (Ilocos Sur), placing the bank under the receivership of state deposit insurer Philippine Deposit Insurance Corp. (PDIC).
In a statement, PDIC said that upon takeover, all bank records of the single-unit rural bank will be gathered, verified and validated.
The state deposit insurer assured depositors that all valid deposits will be paid up to the maximum deposit insurance coverage of P500,000.
PDIC said that as of December 31, 2014, Rural Bank of Magsingal had 458 accounts with total deposit liabilities of P17.4 million, all of which are insured.
It said depositors with valid deposit accounts with balances of P50,000 and below need not file deposit insurance claims, except when they have outstanding obligations with the Rural Bank of Magsingal, acted as co-makers of the obligations, and have incomplete and/or have not updated their addresses with the bank.
“PDIC targets to start mailing payments to these depositors at their addresses recorded in the bank by the second week of March,” it said.
Depositors may update their addresses until March 10, 2015 using the Mailing Address Update Forms to be distributed by PDIC representatives at the bank premises, it said.
For depositors that are required to file deposit insurance claims, the PDIC said it targets to start claims settlement operations for these accounts by the third week of March 2015.
Rural Bank of Magsingal is the second rural bank placed under PDIC receivership this year. The Monetary Board closed a total of 14 rural banks in 2014.