Another Negros Oriental rural bank closed down

The Bangko Sentral ng Pilipinas (BSP) has shuttered another rural bank in Negros Oriental, the second in the province so far this year.

In a March 3 circular letter, the BSP said the Monetary Board—its highest policy-making body—had decided to prohibit Rural Bank of Basay (Negros Oriental) Inc. from doing business.

The Dumaguete City-based rural bank’s assets and affairs were placed under receivership as mandated under Republic Act No. 7653 or the New Central Bank Act.

The BSP designated state-run Philippine Deposit Insurance Corp. (PDIC) as the bank’s receiver. PDIC is the statutory receiver and liquidator of closed banks in the country.

Last month, the BSP also closed down Rural Bank of Bayawan (Negros Oriental) Inc. in Bayawan City.

So far this year, four rural banks have been shuttered for insolvency, including Lapu-Lapu Rural Bank Inc. in Carcar City, Cebu, as well as Rural Bank of Villaviciosa (Abra) Inc.

In a statement, PDIC disclosed that as of end-2015, Rural Bank of Basay had total deposit liabilities worth P135,117.88, with the entire amount insured.

The bank’s president was Edith A. Vera while it was chaired by Filemon M. Rubin.

The PDIC assured depositors that they would all be paid up to the maximum deposit insurance coverage amounting to P500,000 per depositor.

Payments will be mailed to depositors starting the second week of this month while those who were required to file deposit insurance claims will be entertained by the PDIC by the third week of March.