Monetary authorities have shuttered a rural bank in Negros Oriental due to insolvency, the 12th lender closed down this year.
In a bulletin, state-run Philippine Deposit Insurance Corp. (PDIC) said the Monetary Board—the Bangko Sentral ng Pilipinas’ highest policy-making body—last July 7 prohibited the Rural Bank of Siaton (Siaton, Negros Oriental) Inc. from doing business.
The single-unit bank held office at Km. 50, National Highway, Poblacion Siaton, Negros Oriental.
The rural bank’s assets and affairs had been placed under PDIC receivership pursuant to Republic Act (RA) No. 7653 or The New Central Bank Act.
The PDIC took over the bank on July 8.
Its bank information sheet filed with the PDIC showed that as of end-2015, the rural bank was owned by the following: Emilio C. Macias II (with a 28.35-percent share); Melba L. Macias (16.69 percent); Caroline Ann M. Villa (12.37 percent); Victoriano L. Tizon (4.81 percent); and Emilio L. Macias III, Lamberto L. Macias, Erwin Michael L. Macias, Edward Marck L. Macias and Eileen Marie M. Pinili (3.85 percent each).
Eileen Marie M. Pinili was the bank’s president and chair.
As of end-March, Rural Bank of Siaton had 1,301 accounts with deposit liabilities totaling P46.6 million, of which 87.3 percent or P40.7 million had been insured.
The PDIC assured depositors that “all valid deposits shall be paid up to the maximum deposit insurance coverage of P500,000.”
Besides Rural Bank of Siaton, the BSP earlier placed 10 other rural banks under PDIC receivership this year – Rural Bank of Malinao (Aklan) Inc., Koronadal Rural Bank Inc., Rural Bank of Panay Inc., Lapu-Lapu Rural Bank Inc., Rural Bank of Villaviciosa (Abra) Inc., Rural Bank of Bayawan (Negros Oriental) Inc., Rural Bank of Basay (Negros Oriental) Inc., Surigao City Evergreen Rural Bank Inc., Rural Bank of Amadeo (Cavite) Inc., and New Rural Bank of Binalbagan.
Including the thrift bank GSIS Family Bank, which the Monetary Board also shuttered last month, 12 banks have been shut down in 2016.
Rural Bank of Siaton was nonetheless the first bank closed since RA No. 10846, which amended the PDIC’s charter, took effect last month.
The PDIC had noted that under RA 10846, “depositors will have quicker access to their insured deposits in the event of bank closure since PDIC now has the authority to pay insured deposits without netting out depositors’ loan obligations with the closed bank, and based on evidence of deposits and not on the closed bank’s records alone.”