BSP shuts down Batangas rural bank

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of another rural bank based in Batangas affecting close to 2,500 depositors with deposits amounting to P115 million.

The BSP issued MB Resolution 974-A last June 21 ordering the closure of Banco Batangan Inc. and directing the state-run Phillippine Deposit Insurance Corp. (PDIC) to take over the shuttered bank.

Banco Batangan is a two-unit bank with a head office in JP Rizal St., Poblacion, Taysan, Batangas and one branch in Lipa City.

Latest available records showed that the closed bank had 2,411 accounts with total deposit liabilities of P114.47 million as of end-December last year.

According to the latest General Information Sheet filed by Banco Batangan with the Securities and Exchange Commission (SEC), the bank is majority owned by Catalina Aida Mendoza with 20 percent, Ramelo Mendoza with 16.43 percent, Gemeliano Pitogo with 16.43 percent, and Leonardo Rivera Jr. with 16.43 percent.

PDIC is now gathering, verifying, and validating all bank records and assured all depositors that all valid deposits would be paid up to the maximum deposit insurance coverage of P500,000.

The state-run deposit insurer would conduct a depositors’ forum today to inform depositors of the requirements and procedures for filing deposit insurance claims.

Depositors with valid account balances of P10,000 and below, who have no outstanding obligations with Banco Batangan and who have complete and updated addresses with the bank, need not file deposit insurance claims. PDIC targets to start mailing payments to these depositors to their addresses recorded in the bank by early August.

On the other hand, depositors whose accounts have balances of more than P10,000 and those who have outstanding obligations regardless of the amount of their balances or who have failed to update their addresses should file their deposit insurance claims.

The inclusive dates and schedule of the claims settlement operations for these accounts would be announced mid-August through notices to be posted in the bank premises and other public places as well as through the PDIC website.

PDIC was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing permanent and continuing deposit insurance.