Manila, Philippines - The state-run Philippine Deposit Insurance Corp. (PDIC) has assured depositors of the Rural Bank of Banayoyo (Ilocos Sur) Inc. that was ordered closed by the Bangko Sentral ng Pilipinas (BSP) late last month that their insurance claims would be paid.
In a statement, PDIC said it is now gathering, verifying and validating all the records of the shuttered rural bank and depositors with valid accounts would be paid up to the maximum deposit insurance coverage of P500,000.
PDIC said depositors with valid account balances of P10,000 and below, who have no outstanding obligations with RB Banayoyo and who have updated their addresses with the bank in the past year, need not file deposit insurance claims.
PDIC targets to start mailing payments to the depositors with small balances to their last known addresses recorded in the bank by early July.
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 in August.
RB Banayoyo is a single-unit bank located in Poblacion, Banayoyo, Ilocos Sur. The bank had 324 accounts with total deposit liabilities of P4.26 million.
According to the latest general information sheet filed by rural bank with the Securities and Exchange Commission (SEC), it is majority-owned by Saturnino Mangugan with 39.36 percent and Daniel Galang with 6.86 percent. Its chairman and president is Franklin Mangugan.
The rural bank was ordered closed by the BSP last May 31 and PDIC took over the bank June 1.
Likewise, PDIC reminded the borrowers of the bank to continue paying their loans and transact only with authorized PDIC representatives.
It pointed out 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.
The state-run deposit insurer further advised borrowers to keep copies of the PNB payment slips.