Close  

BSP shuts down AMA group’s bank

/ 04:46 AM November 09, 2019

Banking regulators have shut down the operations of AMA Rural Bank of Mandaluyong, the banking arm of AMA Group of Companies founded by businessman Amable Aguiluz and the fifth largest capitalized rural bank in the country.

Philippine Deposit Insurance Corp. (PDIC) placed AMA Bank under receivership on Friday by virtue of an order issued by the Bangko Sentral ng Pilipinas (BSP), which prohibited the bank from further engaging in the banking business.

ADVERTISEMENT

This is the eighth bank to be placed under PDIC receivership and liquidation proceedings so far this year. The others were Rural Bank of Lemery, Rural Bank of Larena (Siquijor), East Coast Rural Bank of Hagonoy, Rural Bank of Guihulngan (Negros Oriental), Valiant Bank, The Palawan Bank and Rural Bank of Basey (Samar).

PDIC posted an advisory in the premises of AMA Bank’s 13 branches notifying clients about the receivership order, industry sources told the Inquirer. Based on data from PDIC’s public assistance unit, the bank had 10 operating branches and three nondeposit taking offices.

FEATURED STORIES

PDIC is mandated to take over banks that are insolvent, or those that did not have enough assets to cover liabilities.

Based on its latest financial statement filed in the BSP, AMA Banks is the 15th largest rural bank in the country in terms of assets. Total resources stood at P2.83 billion as of end-June.

AMA is the fifth largest in capitalization with P1.04 billion.

It has a loan book of P2.06 billion, the 13th largest among rural banks. Its portfolio consisted mainly of consumer loans.

The closure will affect holders of deposit accounts worth about P1.45 billion.

Under the law, PDIC covers valid deposits and claims worth up to P500,000.

Incorporated in 1953, AMA Bank’s shareholders are Amable Aguiluz IX and Amable Aguiluz V. AMA Computer College Inc. and First Women’s Credit Corp. also hold shares in the bank.

ADVERTISEMENT

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: AMA Group of Companies, AMA Rural Bank of Mandaluyong
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.