The Monetary Board of the Bangko Sentral ng Pilipinas ordered the closure of a financially-ailing rural bank in Antique province., the second lender shut down this year.
State-run Philippine Deposit Insurance Corp. said in a statement over the weekend the Monetary Board ordered the closure of Rural Bank of Tibiao (Antique) Inc. in a resolution dated March 5, 2020. The bank has an office at Gov. A.T. Lim Avenue, Barangay Poblacion, Tibiao, Antique.
The board directed the PDIC as receiver to proceed with the takeover and liquidation of the bank in accordance with Section 12 of Republic Act No. 3591, as amended.
Under Section 13 of R.A. No. 3591 (PDIC Charter), as amended by RA 10846, a bank that has been placed under liquidation should not be re-opened and permitted to resume banking business.
Section 12 also provides that banks closed by the Monetary Board should no longer be rehabilitated.
PDIC took over the bank and its assets, records and affairs on March 6, 2020.
Rural Bank of Tibiao became the second bank to be closed this year. The BSP earlier closed Providence Rural Bank Inc., a single-unit bank in Bulala, Camalaniugan, Cagayan.
PDIC took over 11 banks ordered closed by the Monetary Board in 2019. These were Bagong Bangko Rural ng Malabang (Lanao del Sur), Inc.; Rural Bank of Mabitac (Laguna), Inc.; The Palawan Bank (Palawan Development Bank), Inc.; Valiant Bank, Inc. (A Rural Bank); Rural Bank of Basey (Samar), Inc.; Rural Bank of Guihulngan (Negros Oriental), Inc.; East Coast Rural Bank of Hagonoy, Inc.; Rural Bank of Larena (Siquijor), Inc.; Rural Bank of Lemery, Inc.; AMA Rural Bank of Mandaluyong, Inc.; and Maximum Savings Bank, Inc.
PDIC paid a total of P1.18 billion in deposit insurance covering 51,278 valid deposit accounts from last year. This was 92.25 percent of the total amount of deposit insurance claims of depositors from banks ordered closed in 2019 by the Monetary Board.
Deposit insurance claims were paid within the target turnaround time of 12 to 42 working days proportioned on the number of valid deposit accounts maintained in the closed bank.