Capitol City Bank placed under receivership

The Monetary Board of the Bangko Sentral ng Pilipinas has placed Capitol City Bank Inc. under the receivership of the Philippine Deposit Insurance Corp. (PDIC) effective Jan. 24, 2013.

Capitol City Bank is a four-branch rural bank with its head office in Trece Martires City, Cavite. Its three branches are in Alabang, Muntinlupa City; and in General Trias and Trece Martires City in Cavite.

As its designated receiver, PDIC took over the bank on the same day.

Latest available records show that as of June 30, 2012, the bank had 24,812 accounts with total deposit liabilities of P460.72 million. Based on the latest data submitted by Capitol City Bank to the PDIC, the bank is majority owned by Nellie M. Ilas (47.88 percent) who is also the bank’s chair, and Lutgarda P. Morabe (19.2 percent) who is also its president.

In a statement, PDIC said that upon takeover, all bank records shall be gathered, verified and validated. The state deposit insurer assured depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of P500,000.

PDIC also announced that it will conduct depositors forums from Jan. 31 to Feb. 2, 2013 to inform depositors of the requirements and procedures for filing deposit insurance claims. Claim forms will also be distributed during the depositors forum. The schedule and venue of the depositors fora will be posted on the bank premises and on the PDIC website, www.pdic.gov.ph.

Depositors may update their addresses with PDIC representatives at the bank premises or during the forum using the forms to be furnished by PDIC representatives. Accomplished forms should be submitted to PDIC representatives accompanied by a photo-bearing IDs with signatures. Depositors may update their addresses until Feb. 5, 2013.

Depositors with valid deposit accounts with balances of P15,000 and below, who have no outstanding obligations with Capitol City Bank and who have either complete and updated addresses with the bank or have updated their addresses, need not file deposit insurance claims.

PDIC targets to start mailing payments to these depositors to their addresses recorded in the bank by the second week of February 2013.

Depositors whose accounts have balances of more than P15,000 and who have outstanding obligations with Capitol City Bank should file their deposit insurance claims.

The PDIC targets to start claims settlement operations for these accounts by the third week of February 2013.

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