MANILA, Philippines - The Monetary Board has ordered the closure of Rural Bank of MonteVista (Davao del Norte), Inc.
In an order dated March 6, the Monetary Board has prohibited the Rural Bank of Monte Vista from doing business in the country due to cashflow problems.
The Philippine Deposit Insurance Corp. has been appointed as receiver for the bank.
In a statement, the rural bank cited unpaid debts that led to liquidity problems as the cause for the closure.
It said a large number of its borrowers were affected by typhoon Agaton that hit the country early this year.
These clients had already suffered losses following typhoon Pablo’s destruction in 2012, the bank noted.
The PDIC, upon takeover, will be verifying and validating bank records before paying out deposit insurance claims.
Valid deposits will be paid up to the maximum deposit insurance coverage of P500,000.
Depositors will be asked to file deposit insurance claims for the settlement operations except for those with account balances of P50,000 and below, as payments for these clients will be mailed to them directly.