Regulator closes insolvent rural bank in Cebu

The Bangko Sentral ng Pilipinas (BSP) has closed down another bank, this time the Rural Bank of San Fernando (Cebu), due to insolvency.

The Cebu bank, which only has one branch, was the 10th bank ordered shut down by the BSP’s Monetary Board this year. The bank was subsequently put under the Philippine Deposit Insurance Corp.’s (PDIC) receivership.

In a statement, the PDIC said latest available records showed that as of the end of last year, Rural Bank of San Fernando had 3,341 accounts with total deposit liabilities of P83.41 million.

A total of 3,333 deposit accounts or 99.76 percent of the accounts have balances of P500,000 or less, which are fully covered by deposit insurance.

Total insured deposits amounted to P76.81 million or 92.09 percent of the total deposits.

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.

The PDIC also announced that it will conduct a depositors-borrowers forum on July 10, 2013 to inform depositors of the requirements and procedures for filing deposit insurance claims.

Claim forms will be distributed during the forum. The schedule and venue of the forum will be posted at the bank premises and on the PDIC website.

Depositors may update their addresses with the PDIC representatives at the bank premises or during the forum using the mailing address update forms to be furnished by PDIC representatives.