BSP closes rural bank in Negros

CEBU, Philippines — The Monetary Board of the Bangko Sentral ng Pilipinas has closed the Rural Bank of Guihulngan in Negros Oriental.

The central bank has directed the Philippine Deposit Insurance Corp. (PDIC) as receiver to proceed with the takeover and liquidation of the closed lender.

Rural Bank of Guihulngan is a single-unit rural bank located in Sikatuna St., Poblacion, Guihulngan City, Negros Oriental.

Data as of March 31, 2019 showed the rural bank has 933 deposit accounts with total deposit liabilities of P5.95 million, of which 99.85% or P5.94 million are insured deposits.

PDIC in a statement assured depositors that all valid deposits and claims shall be paid up to the maximum deposit insurance coverage of P500,000. Individual account holders of valid deposits with balances of P100,000 and below do not need to file deposit insurance claims, provided they have no outstanding obligations or have not acted as co-makers of obligations with the bank.

"These individual depositors must ensure that they have complete and updated addresses with the bank," the deposit insurer said.

PDIC said its representatives will be distributing mailing address update forms at the bank premises and depositors may submit the forms until May 29, 2019.

For business entities and all other depositors who are required to file claims for deposit insurance, the schedule for filing of claims will be announced through posters in the bank premises and PDIC's online channels.

PDIC also reminded borrowers to continue paying their loan obligations with the closed bank and to transact only with designated PDIC representatives at the bank premises.

For more information on the requirements and procedures for filing of claims for deposit insurance and settlement of loan obligations, all depositors and borrowers of the bank are enjoined to attend the Depositors-Borrowers’ Forum on June 4, 2019. (FREEMAN)