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BSP shuts down troubled bank in Cagayan de Oro

Lawrence Agcaoili (The Philippine Star) - April 25, 2021 - 12:00am

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of Palm Tree Bank Inc., the second problematic bank to be shuttered by the central bank this year.

The Monetary Board issued Resolution 482 last Thursday prohibiting Palm Tree Bank from operating in the country pursuant to Section 30 of Republic Act 7653 or The New Central Bank Act.

State-run Philippine Deposit Insurance Corp. (PDIC) took over the bank last Friday.

The head office of the closed bank is located in Cagayan de Oro City in Misamis Oriental and has a branch in Cotabato City.

Latest data showed Palm Tree Bank has 1,716 deposits accounts amounting to P23.2 million as of end- December. Of the total amount, about 95.8 percent or P22.3 million are insured.

The PDIC assured depositors that all valid deposits and claims would be paid up to the maximum deposit insurance coverage of P500,000 per depositor. Individual account holders of valid deposits with balances of P100,000 and below, and who have no outstanding obligations nor have not acted as co-makers of obligations with Palm Tree Bank are not required to file deposit insurance claims.

For business entities and all other depositors who are required to file claims for insured deposit, receiving of claims is targeted to start by June 7.

Late last March, the BSP ordered the closure of Occidental Mindoro Rural Bank Inc., a single-unit rural bank located at OMRI Bldg., Quezon St., Brgy. Bagong Sikat, Lubang, Occidental Mindoro.

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