Business

3 more banks closed in a week; P1.3B deposits put on hold

 By JOENALD MEDINA RAYOS

 Banking industry in the countryside is experiencing another blows over the week as the Monetary Board of the Bangko Sentral ng Pilipinas is prohibiting more banks from doing business in the country and putting them under the receivership of the Philippine Deposit Insurance Corporation (PDIC) for a consequent liquidation.

As of August 17, the BSP has placed at least five (5) banks under PDIC’s receivership within 11 banking day. This brings to ten (10) the total number of banks that the BSP has closed since January 2018.

Upon checking with the PDIC records, the closed five (%) banks have a total deposit liabilities amounting to Php 1,307.98 billion. Of this amount, the PDIC, the state bank insurer accounts a total insured deposits of Php 1,159.08 billion or only an average of 87.8% of the total deposit liabilities.

Barely a week after closing Rural Bank of Sta. Elena (Camarines Norte), Inc. and Rural Bank of Tiaong (Quezon), Inc., both last August 2, Thursday, the BSP-MB also closed Rural Bank of Pagbilao, Inc. last August 10, Friday. And taking a pattern of weekly blows, banks regulator BSP-MB also shut down last Thursday, August 16, the Malasiqui Progressive Savings and Loan Bank, Inc. in Pangasinan and the Rural Bank of Luna (Apayao), Inc.  in the Cagayan Valley.

The Malasiqui Progressive Savings and Loan Bank, Inc. is a single-unit thrift bank located in Quezon Blvd. Extension, Brgy. Poblacion, Malasiqui, Pangasinan.

Latest available records show that as of June 30, 2018, the bank had 1,064 deposit accounts with total deposit liabilities of PhP73.5 million. Total insured deposits amounted to PhP67.5 million equivalent to 91.8% of total deposits.

Meanwhile, Rural Bank of Luna is a five-unit rural bank with Head Office located in San Isidro Norte, Luna, Apayao, Cagayan Valley. Its four branches are Abulug, Alcala, Allacapan and Buguey, all in Cagayan, Cagayan Valley.

Latest available records show that as of June 30, 2018, Rural Bank of Luna had 10,090 deposit accounts with total deposit liabilities of PhP213.13 million. Total insured deposits amounted to PhP185.06 million equivalent to 86.8% of total deposits.

The closed Rural Bank of Pagbilao, however, is a three-unit rural bank with Head Office located along C.M. Recto Ave., Mapagong, Pagbilao, Quezon. Its branches are located in Barangay Ibabang Dupay, Lucena City and Barangay Sta. Catalina, Pagbilao.

Latest available records show that as of June 30, 2018, Rural Bank of Pagbilao had 3,324 deposit accounts with total deposit liabilities of PhP110.05 million. Total insured deposits amounted to PhP95.82 million equivalent to 87.1% of total deposits.

PDIC assured depositors on all these banks that the MB ordered to shut down, that all valid deposits and claims shall be paid up to the maximum deposit insurance coverage of PhP500,000.00. Individual depositors with valid deposit accounts with balances of PhP100,000.00 and below shall be eligible for early payment and need not file deposit insurance claims, provided they have no outstanding obligations with Rural Bank of Pagbilao or have not acted as co-makers of these obligations. These individual depositors must ensure that they have complete and updated addresses with the bank.

As of press time, depositors may still update their addresses more or less two (2) weeks after the bank’s closure. For further inquiries, they may visit their respective branch where the personnels of the PDIC are station to attend to their concerns.|#BALIKAS_News

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