Monetary Board shuts down Rural Bank of Medellin

CEBU, Philippines — The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has officially barred the Community Rural Bank of Medellin (Cebu), Inc. from conducting business in the Philippines, citing MB Resolution No. 1287 dated November 14, 2024.

The resolution also tasked the Philippine Deposit Insurance Corporation (PDIC) with the immediate takeover and liquidation of the bank, which the PDIC executed on November 15, 2024.

The Community Rural Bank of Medellin, a single-branch rural bank headquartered on Jose Rizal Street, Brgy. Poblacion, Medellin, Cebu, reported deposit liabilities totaling P35.1 million as of September 30, 2024. Of this, 92.3 percent, or P32.4 million, is covered by deposit insurance.

The PDIC assured depositors that all valid deposit claims would be honored, up to the maximum insurance coverage of P500,000 per depositor.

Individual depositors with account balances of P500,000 or less, provided they have no outstanding obligations or co-maker liabilities, are not required to file claims. However, these depositors must ensure that their mailing addresses with the bank are accurate and up-to-date.

Updates to depositor information can be submitted via a Mailing Address Update Form (MAUF), which must be completed and submitted by November 25, 2024.

Forms are available at the bank’s premises or downloadable from the PDIC website (www.pdic.gov.ph).

Completed forms can be submitted to PDIC representatives at the bank or emailed to [email protected].

The PDIC plans to commence disbursement of insurance payments through postal money orders or Landbank Visa Debit Cards starting December 4, 2024. Business entities and other depositors must file claims for insured deposits beginning December 12, 2024.

The PDIC reminded borrowers to continue repaying their loans and transact only with authorized PDIC representatives. Further guidance will be provided during a Depositors-Borrowers’ Forum scheduled for December 2, 2024, with details to be announced.

In line with the PDIC Charter, letters of intent are now being accepted from interested banks and financial institutions for the possible purchase of assets and assumption of liabilities (P&A) of the closed bank.

Proposals must be submitted within 60 days from the takeover date and comply with pre-qualification and evaluation guidelines available on the PDIC website.

Established in 1963, the PDIC plays a critical role in safeguarding depositors and maintaining the stability of the financial system. Under its current mandate, deposits up to P500,000 are insured per depositor. — (FREEMAN)