PDIC takes over Express Savings Bank

MANILA, Philippines - Laguna-based Express Savings Bank Inc. has been placed under receivership by the Bangko Sentral ng Pilipinas (BSP) and handed over to the Philippine Deposit Insurance Corp. (PDIC).

A relatively small thrift bank, Express Savings Bank was recently linked to ongoing investigations regarding alleged anomalies by officials of the Local Water Utilities Administration (LWUA).

BSP Deputy Governor Nestor Espenilla Jr. said Express Savings Bank was placed under receivership due to its inability to pay liabilities in the ordinary course of business.

“Express Savings Bank cannot continue to do business without involving probable losses to its depositors and creditors,” Espenilla pointed out.

The thrift bank operates four branches, all in Laguna province – its head office on J.P. Rizal Avenue, Cabuyao; in Santa Rosa, Binan and San Pedro.

Latest available records show that as of March 31, 2011 Express Savings Bank had estimated total deposit liabilities of P608.36 million consisting of 2,673 accounts.

 Meanwhile, the PDIC said that holders of deposit accounts with balances of P10,000 and below, who have no outstanding loans and whose addresses are current in the bank records are not required to file deposit insurance claims.

 PDIC plans to start mailing insurance payment for these account holders on the last week of August. Payments will be made through postal money order (PMO) mailed directly to depositors via express mail. 

 These PMOs can be encashed at the local postal offices and Land Bank of the Philippines branches. This group of depositors comprises 56.7 percent of the bank’s total deposit accounts amounting to P4.57 million.

 Depositors with account balances of more than P10,000 and those whose balances are P10,000 and below with incomplete addresses in the bank records and with outstanding loans are required to file claims.

“Announcements on the claims operations will be posted on the PDIC website, and in the bank premises,” the state insurer said.

It reminded borrowers that loan repayments should be made only to the PDIC deputy receiver or the assisting deputy receiver stationed at the bank premises, or deposited to the designated Philippine National Bank (PNB) accounts.