Two RBs close shop

The Rural Bank of Pilar (Capiz) Inc. and Rural Bank of Malinao (Albay) Inc. has been placed under receivership by the Bangko Sentral ng Pilipinas (BSP) effective July 6 this year.

The Philippine Deposit Insurance Corp. (PDIC) is the statutory receiver of closed banks.

The PDIC, by virtue of BSP Monetary Board Resolution 871 and 872, took over the Rural Bank of Pilar in Capiz and Rural Bank of Malinao (Albay) both of which had huge deposit liabilities and capital deficits or inadequacies.

RB Pilar has two banking units, its head office in Pilar, Capiz and a branch in Roxas City. The RB Malinao is a single unit bank located in Malinao, Albay.

As of June 30, 2005, estimated total deposit liabilities of RB Pilar is P10.24 million with around 1,500 deposit accounts while RB Malinao has estimated total deposit liabilities of P15.78 million with about 6,700 deposit accounts.

PDIC representatives are currently in the premises of the head office and branch of said closed banks conducting examination of the deposit records and other bank records in preparation for the processing and payment of claims for insured deposits. The PDIC is also conducting an inventory of the remaining assets of the closed bank.

In a statement, the PDIC said it was fasttracking the examination of the deposit records to ensure immediate servicing of claims. The state deposit insurer, however, stated that the servicing of claims is dependent on the state of the bank records. It advised depositors and creditors of the two rural banks to directly transact only with designated PDIC representatives.

Under Republic Act (RA) 9302 that amended the PDIC Charter, the maximum deposit insurance coverage is at P250,000 per depositor effective Aug. 12, 2004.