AMA Rural Bank of Mandaluyong, the banking arm of AMA Group of Companies of businessman Amable Aguiluz, seeks to challenge what it deemed was the “unreasonable” shutdown of its operations by banking regulators.
On November 8, AMA Bank was placed under the receivership of the Philippine Deposit Insurance Corp. (PDIC). Its head office and all 10 branches and three other branch offices were not allowed to resume banking business.
As reported by Inquirer on Saturday, the shutdown was based on an order issued by the Monetary Board, the highest policy-making body of the Bangko Sentral ng Pilipinas.
The bank’s management said on Sunday that it “regrets” this development, citing figures on assets an capitalization to prove its “strength.” The bank insisted that it was “liquid,” citing its shareholders’ capital injection of an additional P405 million, and a total deposit due from BSP/other banks amounting to P246 million.
“Given this strength, AMA Bank assures our clients, employees, and stakeholders that we are fit to operate in every capacity,” AMA Bank said.
“We challenge the closure as unreasonable. Guided by legal measures, we are exploring all possible courses of actions to resume our full operations and continue to serve you,” it added.
Citing its latest financial statement filed with the Bangko Sentral ng Pilipinas (BSP), AMA Bank noted that it was the 15th largest rural bank in the country in terms of assets with total resources at P2.76 billion as of end-September 2019.
The bank is considered as the fifth largest rural bank in capitalization with P1.04 billion.
AMA Bank has a net loan portfolio of P1.9 billion, consisting mainly of teacher salary loans, estimated to be the 13th largest among rural banks.