Bangko Sentral ng Pilipinas (BSP). RYAN LEAGOGO/INQUIRER.net
MANILA, Philippines—Monetary authorities have shut down a rural bank in Southern Leyte and placed it under Philippine Deposit Insurance Corp. (PDIC) receivership.
In a statement, state-run PDIC said it took over the Rural Bank of Padre Burgos (Southern Leyte) Inc. last September 15 after it was shut down by the Bangko Sentral ng Pilipinas’ Monetary Board via Resolution No. 1392.A dated September 12.
According to PDIC, Rural Bank of Padre Burgos was a single-unit rural bank located in Poblacion, Padre Burgos, Southern Leyte.
The shuttered bank had 6,120 accounts with total deposit liabilities worth P32.6 million as of the end of June, PDIC said.
Of the deposit accounts, 6,108 or 99.8 percent have balances of P500,000 or less, hence are fully covered by deposit insurance. Estimated total insured deposits, meanwhile, stood at P24.7 million or three-fourths of total deposits, the state deposit insurer said.
PDIC said depositors with valid accounts “shall be paid up to the maximum deposit insurance coverage of P500,000.”
A forum for depositors-borrowers will be held on September 22, 9 a.m., at the Padre Burgos Municipal Gym, in order to inform depositors of the requirements and procedures for filing deposit insurance claims, according to the PDIC.
Claim forms shall be distributed during the forum or they may be downloaded from PDIC’s website.
For depositors with valid deposit accounts having balances of P50,000 and below, PDIC said they would not have to file deposit insurance claims. Depositors with outstanding obligations with the bank, however, must file their respective claims, PDIC advised.
Beginning the fourth week of this month, PDIC will send payments via mail to depositors who need not file claims. Settlement operations for depositors required to file deposit insurance claims will start in the first week of October.
The biggest shareholders in Rural Bank of Padre Burgos were Gaudencio R. Cabilao, Sheila C. Dequito and Avenescio A. Piramide, who was also the bank’s president and chair.