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People pass by the Bangko Sentral ng Pilipinas sign at the central bank's headquarters in Malate, Manila. (Photo: Alvin I. Dacanay)

MB seizes Cabanatuan bank after insolvency

The policy-making Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has banned Cabanatuan City Rural Bank Inc. from doing business in the country.

Under Resolution 1631 dated September 28, the MB directed the Philippine Deposit Insurance Corp. (PDIC) as receiver that will undertake the takeover and liquidation of the bank. PDIC took over the bank last September 29.

Cabanatuan City Rural Bank is a seven-unit rural bank with head office at Liwag Building, P. Burgos Ave., Brgy. Padre Burgos (Pob.), Cabanatuan City.

Its six branches are located in Bongabon, Rizal, San Antonio, San Jose, Talavera, and Zaragoza, all in Nueva Ecija.

Records show that as of last June 30, Cabanatuan City Rural Bank had 3,983 deposit accounts with total deposit liabilities of P310.8 million.

Total insured deposits amounted to P273.8 million equivalent to 88.1 percent of total deposits.

PDIC assured depositors that all valid deposits and claims shall be paid up to the maximum deposit insurance coverage of P500,000.

Individual depositors with valid deposit accounts with balances of P100,000 and below shall be eligible for early payment and need not file deposit insurance claims, provided they have no outstanding obligations with Cabanatuan City Rural Bank or have not acted as co-makers of these obligations.

These individual depositors must ensure that they have complete and updated addresses with the bank.

They may update their addresses until October 6, 2017 using the mailing address update forms to be distributed by PDIC representatives at the bank premises.

The PDIC said business entities and all other depositors who are required to file claims for deposit insurance, the schedule for filing of claims will be announced as soon as possible through posters in the bank premises and in other public places, the PDIC website, www.pdic.gov.ph, and PDIC’s official Facebook account.

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

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