BSP shuts down Iloilo rural bank

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has padlocked the Rural Bank of Alimodian (Iloilo) Inc., bringing to three the number of problematic banks shuttered by the regulator this year.

The central bank’s Monetary Board issued Resolution 539 last May 6 prohibiting the Rural Bank of Alimodian from operating in the country pursuant to Section 30 of Republic Act 7653 or The New Central Bank Act.

State-run Philippine Deposit Insurance Corp. (PDIC) took over the bank last May 12. The bank has a lone branch located at Cabaluna St. Barangay Poblacion, Leon in Iloilo.

Latest available records show that Rural Bank of Alimodian has 5,419 deposit accounts with total deposit liabilities of P274.4 million, of which 99 percent or P202.8 million are insured deposits.

For the safety of the bank clients and local residents, the PDIC field personnel complied with the health, quarantine and travel protocols in accordance with Resolution 98-A issued by the Inter-Agency Task Force on Emerging Infectious Disease (IATF).

The same resolution also authorized the PDIC personnel to travel on official business unimpeded to ensure that the PDIC is able to fulfill its mandates under the law.

The PDIC assured depositors that all valid deposits and claims would be paid up to the maximum deposit insurance coverage of P500,000 per depositor. Individual account holders of valid deposits with balances of P100,000 and below, and who have no outstanding obligations nor have not acted as co-makers of obligations with Rural Bank of Alimodian are not required to file deposit insurance claims.

For business entities and all other depositors who are required to file claims for insured deposit, receiving of claims is targeted to start by July 22.

The BSP has earlier ordered the closure of Palm Tree Bank Inc. based in Cagayan de Oro City and Occidental Mindoro Rural Bank Inc.

In 2020, ordered closed were Providence Rural Bank, Rural Bank of Tibiao (Antique), De La O Rural Bank, San Fernando Rural Bank, and Cooperative Bank of Aurora.

The PDIC paid P124.11 million worth of insurance claims for 7,072 valid deposit accounts maintained in the five banks, or 76 percent of the estimated total deposit accounts of 9,305.