PDIC awaits response from AMA Bank on turnover of funds

MANILA, Philippines — The Philippine Deposit Insurance Corp. (PDIC) is still waiting for a reply from AMA Rural Bank of Mandaluyong Inc. regarding its request for a meeting to facilitate the turnover of funds.

“As of date, the PDIC is still awaiting response from AMA Bank on its request for a meeting together with the designated Sheriff of the Court of Appeals (CA), to facilitate the turnover of the funds,” the PDIC said in a statement.

According to the PDIC, it had prepared a manager’s check from Land Bank of the Philippines as early as May 24, 2023. It was ready to transfer the total amount of funds and interest earned as well as net of expenses to AMA Bank.

However, the PDIC had to suspend the turnover due to CA resolutions dated July 5, 2023 and Feb. 6, 2024, which deferred the execution of the CA decision on Sept. 7, 2020.

At that time, the issue of AMA Bank’s closure was still pending with the Supreme Court.

In July 2023, the state deposit insurer completed the turnover of documents, records and branches to AMA Bank, in the presence of the CA-designated sheriff.

“Upon its receipt of the latest SC Resolution dated May 28, 2024, the PDIC has written AMA Bank on July 30, 2024 for a meeting to discuss the full turnover of the cash,” the PDIC said.

“All the creditors and depositors are advised to directly communicate with AMA Bank,” it added.

In November 2019, the Bangko Sentral ng Pilipinas (BSP)’s Monetary Board ordered the closure of AMA Bank due to purported liquidity problems.

The central bank placed the rural lender under liquidation by the PDIC. Under the law, the PDIC has the sole authority to manage and administer closed banks.

Two weeks later, the CA issued a temporary restraining order to prevent the BSP and PDIC from further implementing the closure order.

In January 2020, the Third Division of the CA issued a writ of preliminary injunction that prevented the BSP and the PDIC from proceeding with the liquidation of AMA Bank.

The CA also ordered the return of the seized bank assets.

In an 18-page decision promulgated on April 29, 2024, the CA found officials of the BSP and the PDIC guilty of civil indirect contempt after disregarding the court order to reopen AMA Bank.

According to the CA, BSP and PDIC officials implemented delays instead of complying with the court order.

The BSP has yet to issue its own statement on the reopening of AMA Bank.