PDIC to pay deposit claims in 2 closed rural banks

Lawrence Agcaoili - The Philippine Star

MANILA, Philippines - State-run Philippine Deposit Insurance Corp. (PDIC) is set to start servicing the insurance claims of depositors of two rural banks ordered closed recently by the Bangko Sentral ng Pilipinas (BSP).

The deposit insurer is set to pay the claims of depositors of the Peñafrancia Rural Bank of Calabanga Inc. and Rural Bank of Caba (La Union) Inc. in the first week of January.

PDIC took over both banks last Dec. 11 or a day after they were ordered closed by the BSP’s Monetary Board. The agency is now gathering, verifying, and validating all bank records.

The state deposit insurer assured depositors of the closed rural banks that all valid deposits would be paid up to the maximum deposit insurance coverage of P500,000.

The BSP issued MB Resolution 2003 ordering the closure of Peñafrancia Rural Bank of Calabanga that has a lone branch located in Del Carmen, Calabanga, Camarines Sur.

Major shareholders of the rural bank include Bonifacio Bryan Lao Cu, Bonifacio Lao Cu Jr., Lynette Lau Cu, Magdalena Cu Chua, Bonifacio Lo Cu, and Vincent Sulit Aunisin.

Peñafrancia Rural Bank of Calabanga had 786 accounts with total deposit liabilities of P52 million as of end-June. Total insured deposits amounted to P48.4 million or 93 percent of total deposits.

On the other hand, the BSP also issued MB Resolution 2004 shutting down the Rural Bank of Caba that has a single unit rural bank in Poblacion Sur, Caba, La Union.

Owners of the rural bank include Enrique Sobrepeña Jr., Rose Sobrepeña, Rockshed Management Inc., Juan Miguel Sobrepeña, Robert John Sobrepeña, William Russell Sobrepeña, and Enrique Sobrepeña III.

The closed rural bank had 1,057 accounts with total deposit liabilities of P18.3 million as of end-September of which 98.2 percent or P18 million are insured.

PDIC said depositors of both closed banks with balances of P100,000 and below shall be eligible for early payment and need not file deposit insurance claims. It would start mailing payments to these depositors at their addresses recorded in the bank no later than first week of January.

For depositors who are required to file deposit insurance claims, the PDIC targets to start claims settlement operations for these accounts by the second week of January.

The BSP has shut down 14 rural banks this year, matching the number of banks ordered closed by the central bank last year.

These include the Community Bank (Rural Bank of San Alfonso) Inc., Community Rural Bank of Magsaysay (Davao del Sur) Inc., Rural Bank of Labrador (Pangasinan) Inc., Rural Bank of Magsingal (Ilocos Sur) Inc., Rural Bank of Pres. Roxas (North Cotabato) Inc., Rural Bank of Sta. Magdalena (Sorsogon) Inc., Siargao Bank (A Rural Bank) Inc., Surigaonon Rural Banking Corp., Farmer’s Rural Bank Inc. in Batangas, Xavier-Punla Rural Bank Inc., Rural Bank of Buguias, Rural Bank of Calasiao, the Peñafrancia Rural Bank of Calabanga Inc., and Rural Bank of Caba.

Last July, the BSP together with PDIC and Land Bank of the Philippines launched the Consolidated Program for Rural Banks (CPRB) to further encourage mergers and consolidations among rural banks.













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