THE central bank’s Monetary Board (MB) has ordered a Surigao City-based rural bank closed and placed under receivership of the state-run deposit insurer.
The MB placed Surigao City Evergreen Rural Bank 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 April 15, 2016.
“Please be advised that upon takeover of the bank by PDIC as receiver, all officers and employees of the bank cease to have any authority to act for and in behalf of the Bank in whatever capacity,” the PDIC said in a bulletin posted on its website.
The PDIC has 90 days to determine if the rural can be rehabilitated or allowed to resume business. Whatever the PDIC decides must be approved by the MB.
“In this regard, all qualified parties must manifest in writing their interest to rehabilitate the bank and submit pre-qualification requirements within ten (10) days from the date of publication or posting of this notice whichever comes first. For the list of requirements you may visit our website at www.pdic.gov.ph,” it said.
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 and have incomplete or have not updated their addresses.
Surigao City Evergreen Rural Bank is the eighth 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.