THE central bank’s Monetary Board (MB) has ordered an Aklan-based rural bank closed and placed under receivership of the state-run deposit insurer.
In a circular, the central bank said the Monetary Board placed the six-unit Rural Bank of Malinao 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 Malinao’s head office is located in Malinao, Aklan.
Depositors of closed banks under PDIC receivership are entitled to be paid up to the maximum insurance coverage of P500,000.
As of December 31, 2015, Rural Bank of Malinao had 8,745 accounts with total deposit liabilities of P170.2 million. Total insured deposits amounted to P157.7 million or 92.62 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 these depositors at their addresses recorded in the bank by the first week of April 2016,” the insurer said.
Depositors have until April 5 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 second week of April.
The PDIC also announced that it would conduct a depositors-borrowers forum on April 8. It urged depositors to attend so they could verify if they are eligible for early payment.
Rural Bank of Malinao is the seventh rural bank to be placed under PDIC receivership this year.
In 2015, the Monetary Board closed down and placed 14 banks under PDIC receivership compared with 15 banks in 2014.