MONETARY authorities have ordered a rural bank in Batangas province shuttered and placed under receivership.

In a circular released on Monday night, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi Fonacier said the Rural Bank of Lemery Inc. was ordered closed by the central bank's policy-setting Monetary Board on October 31.

“The Philippine Deposit Insurance Corp. (PDIC) has been designated as receiver with a directive to proceed with the takeover and liquidation of the aforementioned rural bank,” she added.

The rural lender is on Illustre Avenue in Lemery's District 1 village.

As receiver, the PDIC took over the bank and its assets, records and affairs on Monday.

“Please be informed that upon placement of the bank under liquidation, the powers, functions and duties of the directors, officers and stockholders of the bank are terminated,” the state-run deposit insurer said in a separate bulletin released on Tuesday.

Accordingly, the directors, officers and stockholders shall be barred from interfering in any way with the assets, records and affairs of the bank, it added.

“Therefore, should you be in possession of any asset and/or records of the closed Rural Bank of Lemery Inc., you are advised not to allow or honor any transaction affecting the same without the consent of the receiver and to immediately turnover the said assets and/or records to the deputy receiver.”

Depositors of closed banks under PDIC receivership are entitled to be paid up to the maximum insurance coverage of P500,000.

Depositors with valid accounts of P100,000 and below do not need to file deposit insurance claims, except when they have outstanding obligations with the closed bank or acted as co-makers of obligations.

The Rural Bank of Lemery was the ninth lender to be placed under PDIC receivership this year.

The Monetary Board closed 12 banks in 2018 and seven banks in 2017.