BSP shuts down Surigao rural bank

MANILA, Philippines – The Bangko Sentral ng Pilipinas has ordered the closure of the Surigaonon Rural Banking Corp. in Surigao del Norte, the fourth bank the BSP shut down this year.

The Philippine Deposit Insurance Corp. (PDIC), which took over the bank last week, said the rural bank has P265.3 million in total deposit liabilities from 13,184 accounts.

Insured deposits, meanwhile, amounted to P249.4 million or about 94 percent of the total deposits.

Apart from the bank’s head office in Surigao City, it has nine branches in the cities of Butuan, Cagayan de Oro, Davao, Tacloban and in other areas in the province.

“All bank records shall be gathered, verified and validated. All valid deposits shall be paid up to the maximum deposit insurance coverage of P500,000,” the PDIC said.

Depositors with accounts amounting to P50,000 and below need not file deposit insurance claims, unless they have outstanding loans with the bank or incomplete or old addresses in bank records.

The state deposit insurer said it plans to mail payments to these depositors starting the second week of May.

Claims settlement operations for other depositors have been set for the third week of May, the PDIC said.

Depositors-borrowers meetings will be conducted on May 7 to 8 to inform bank clients of the procedures in filing claims.

The PDIC said the time and venue of the meetings would be posted on the bank premises and on the PDIC website,

“Schedule of the claims settlement operations, as well as the requirements and procedures for filing claims will be announced through notices to be posted in the bank’s premises, other public places and the PDIC website,” the state deposit insurer said.

Last year, 14 banks were ordered closed by the BSP’s monetary board.

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