THE central bank’s Monetary Board (MB) has ordered a Negros Occidental-based rural bank closed and placed under receivership of the state-run deposit insurer.
The MB placed the New Rural Bank of Binalbagan Inc. under the receivership of the Philippine Deposit Insurance Corp. (PDIC).
The rural bank is now prohibited from doing business in the Philippines, with its assets and affairs placed under PDIC control.
The PDIC took over the bank and its assets, records and affairs on June 10.
The PDIC has 90 days to determine if the rural bank can be rehabilitated and allowed to resume business. Whatever the PDIC decides must be approved by the MB.
Depositors of closed banks under PDIC receivership are entitled to be paid up to the maximum insurance coverage of P500,000.
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, or have not updated their addresses.
New Rural Bank of Binalbagan Inc. is the 11th bank to be placed under PDIC receivership this year.