MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of the Rural Bank of Catubig (Northern Samar), Inc.
“[T]he Monetary Board... decided to prohibit the Rural Bank of Catubig (Northern Samar) from doing business in the Philippines and to place its assets and affairs under receivership,†read Memorandum No. M-2013-047, a copy which was made available on the BSP website yesterday.
The shuttered rural bank was placed under the receivership of the Philippine Deposit Insurance Corporation (PDIC) following its closure.
The Rural Bank of Catubig’s head office is located in Poblacion Catubig in Northern Samar, BSP data showed. It has no other branches and its president is Nelida J. Uy as of Oct. 31 this year.
Felipe Medalla, Monetary Board member, said the placement of some banks under the receivership of the PDIC is needed in order to maintain the stability of the local banking system.
“The soundness of the banking system is important. If we do not act on this, this could get worse,†Medalla told reporters yesterday.
He explained that some banks have stopped operations due to lack of capitalization, restricting them to service their depositors.
Medalla said this process hurts some clients, but assured the state deposit insurer is capable of handling insurance claims.
The PDIC has yet to release a schedule of when it may start to pay out deposit insurance claims or when it will hold a depositors-borrowers forum for the bank’s clients.
Usually, depositors are required to file deposit insurance claims with the PDIC except those with deposits of P15,000 and below.
The PDIC also verifies and validates bank records first and pays out valid deposits up to the maximum insurance coverage of P500,000.