THE BANGKO Sentral ng Pilipinas (BSP) ordered the closure of Quezon Traders Rural Bank of Candelaria this week for insolvency, regulators announced Friday.
The single-unit lender is the 11th bank to be closed this year.
In a statement, the Philippine Deposit Insurance Corp. (PDIC) said the Quezon bank was ordered closed by the BSP’s Monetary Board on Thursday.
The PDIC yesterday took over the bank as receiver.
The PDIC’s role as receiver is to liquidate the bank’s assets, collect receivables from the bank’s debtors, and give back the money of depositors. If the bank’s assets are not enough to cover its liabilities to depositors, the PDIC dips into its own deposit insurance fund to ensure that everyone is paid.
Latest available records showed that as of March 31, 2013, Quezon Traders Rural Bank had 582 accounts, with total deposit liabilities of P46.56 million.
A total of 565 deposit accounts, or 97.08 percent of the accounts, have balances of P500,000, which are fully covered by the PDIC’s deposit insurance.
Total insured deposits amounted to P46.17 million, or 99.15 percent of total deposits.
The PDIC said all bank records would be gathered, verified, and validated to ensure the accuracy of payouts to depositors. It added that a depositors-borrowers forum would be held on July 17 to inform depositors of the requirements and procedures for filing deposit insurance claims.
Depositors with valid deposit accounts with balances of P15,000.00 and below need not file deposit insurance claims.
But depositors who have outstanding obligations with Candelaria bank and have incomplete and/or have not updated their addresses with the bank should file deposit insurance claims.