Business News

2nd in a row in Batangas: MB closes MaxBank

By JOENALD MEDINA RAYOS

BATANGAS City – BARELY four days after the Philippine Deposit Insurance Corporation (PDIC) took over as receiver a Lemery-based rural bank last November 4, the state liquidator takes over again another Batangas City-based bank, November 8, Friday.

The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) prohibited Maximum Savings Bank, Inc. [also known as MaxBank] from doing business in the Philippines through MB Resolution No. 1704.C dated November 7, 2019 which also directed the PDIC as receiver to proceed with the takeover and liquidation of Maximum Savings Bank.

Maximum Savings Bank is a five-unit thrift bank with Head Office located at Antonio A Pastor Bldg., 24 P. Burgos St., Barangay 16 (Pob), in Batangas City. It has four branches located in Muntinlupa City; Batangas City, Batangas; and Calapan City and Puerto Galera, both in Oriental Mindoro.

Latest available records show that as of June 30, 2019, Maximum Savings Bank has 3,487 deposit accounts with total deposit liabilities of PhP158.0 million, of which 38.34% or PhP60.6 million are insured deposits.

Along with MaxBank, the Monetary Board also ordered the closure of AMA Rural Bank of Mandaluyong, Inc. through MB Resolution No. 1705.D dated November 7, 2019; and was also taken over by PDIC on November 8, 2019.

AMA Rural Bank of Mandaluyong is a 13-unit rural bank with Head Office located at No. 311, Shaw Blvd., Brgy. Hagdang Bato Libis, Mandaluyong City. It has 12 branches located in Pasig City; Baguio City; San Fernando City, La Union; Tuguegarao City, Cagayan; Baliuag, Bulacan; San Fernando, Pampanga; Bacoor, Cavite; Cainta and Morong in Rizal; Calamba City and San Pablo City in Laguna; and Palo, Leyte.

The Monetary Board of the Bangko Sentral ng Pilipinas places AMA Bank under receivership of the Philippine Deposit Insurance Corporation. AMA Bank is the banking arm of businessman Amable Aguiluz, the head of AMA Group of Companies.|PDIC Photo

Latest available records show that as of June 30, 2019, AMA Rural Bank of Mandaluyong has 8,434 deposit accounts with total deposit liabilities of PhP1.4 billion, of which 92.06% or PhP1.3 billion are insured deposits.

The twin-closure of MaxBank and AMA Bank accounted for a a total of 11,921 combined number of affected deposit accounts with a combined total deposit liabilities of Php 1.558 billion. Of this amount, only Php 1.360 billion deposits are covered by mandatory insurance coverage of Php 500,000.oo per deposit account.

The law provides for a maximum deposit insurance coverage of Php 500,000.00 per account. Meanwhile, irresponsible banking practice commonly splits bulk deposits into maximum amount of Php 500,000.00 equivalent to insurance coverage. This practice lure depositors with high savings interest rates and ‘double your money’ strategies that put their banks in peril.

PDIC reminded borrowers to continue paying their loan obligations with the closed banks and to transact only with designated PDIC representatives who are temporarily stationed at the closed banks’ premises distributing Mailing Address Update Forms where depositors may submit the forms until November 15, 2019.|- Balikas News Network