MANILA, Philippines - State-run Philippine Deposit Insurance Corp. (PDIC) is set to start paying depositors of the shuttered Bukidnon-based Xavier-Punla Rural Bank Inc. in the second week of September.
The state deposit insurer aims to start mailing payments to depositors at their addresses recorded in the bank by the second week of September.
PDIC assured depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of P500,000.
According to the state insurer, depositors with valid deposit accounts with balances of P100,000 and below are eligible for early payment and need not file deposit insurance claims except those with outstanding obligations.
For depositors who are required to file deposit insurance claims, the PDIC targets to start claims settlement operations for these accounts also in the second week of September.
The agency is set to conduct a depositors-borrowers forum on Sept. 3.
Xavier-Punla Rural Bank is a single-unit rural bank located in Poblacion, Pangantucan, Bukidnon. Major shareholders include Aakay Ang Milamdec Inc. with 34 percent, Teresita Barcelon (18.7 percent), Brixton Investment Corp. (16.7 percent), Neil Cazzola (nine percent), Punla Sa Tao Foundation (nine percent), Emeterio Lim Barcelon (3.2 percent), Glorecita Tan (3.1 percent), Robert Tan (3.1 percent), and Elpedio Paras (2.5 percent).
Latest available records showed the bank has 1,357 accounts with total deposit liabilities of P40 million. Total insured deposits amounted to P31.2 million or 77.8 percent of total deposits.
The BSP has issued Monetary Board Resolution 1306 dated Aug. 20 placing the bank’s assets under the supervision of PDIC as mandated under Republic Act 7653 or the New Central Bank Act.
This is the 10th bank order closed by the BSP this year that include Community Bank (Rural Bank of San Alfonso) Inc., Community Rural Bank of Magsaysay (Davao del Sur), Rural Bank of Labrador (Pangasinan), Rural Bank of Magsingal (Ilocos Sur), Rural Bank of Pres. Roxas (North Cotabato), Rural Bank of Sta. Magdalena (Sorsogon), Siargao Bank (A Rural Bank), Surigaonon Rural Banking Corp., and Farmer’s Rural Bank in Batangas.
The BSP, PDIC, and the Land Bank of the Philippines inked a memorandum of agreement (MOA) further enhancing the incentives as well as financial package to encourage mergers and consolidations among rural banks through the Consolidation Program for Rural Banks (CPRB).