Monitory Board prohibits operations of Rural Bank of Siaton, Inc; PDIC to pay all valid insured deposit claims

The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) approved to prohibit Rural Bank of Siaton (Siaton, Negros Oriental), Inc. from doing business in the Philippines by virtue of MB Resolution No. 1202.A dated July 7, 2016. It directed the Philippine Deposit Insurance Corporation (PDIC) as Receiver to proceed with the takeover and liquidation of the bank. PDIC took over the bank on July 8, 2016.

Rural Bank of Siaton is a single-unit rural bank located at Km. 50, National Highway, Poblacion Siaton, Negros Oriental. Based on the Bank Information Sheet filed by the bank with the PDIC as of December 31, 2015, Rural Bank of Siaton is owned by Emilio C. Macias II (28.35%), Melba L. Macias (16.69%), Caroline Ann M. Villa (12.37%), Victoriano L. Tizon (4.81%); and Emilio L. Macias III, Lamberto L. Macias, Erwin Michael L. Macias, Edward Marck L. Macias and Eileen Marie M. Pinili (at 3.85% each). The Bank's President and Chairman is Eileen Marie M. Pinili.

Latest available records show that as of March 31, 2016, Rural Bank of Siaton had 1,301 accounts with total deposit liabilities of PHP46.6 million. Total insured deposits amounted to PHP40.7 million or 87.3% of total deposits.

PDIC said that during the takeover, all bank records shall be gathered, verified and validated. The state deposit insurer assured depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of PHP500,000.00.

Depositors with valid deposit accounts with balances of PHP100,000.00 and below shall be eligible for early payment and need not file deposit insurance claims, except accounts maintained by business entities, or when they have outstanding obligations with Rural Bank of Siaton or acted as co-makers of these obligations. Depositors have to ensure that they have complete and updated addresses with the bank. PDIC will start mailing payments to concerned depositors at their addresses recorded in the bank by the third week of July 2016.

Depositors may update their addresses until July 14, 2016 using the Mailing Address Update Forms to be distributed by PDIC representatives at the bank premises.

For depositors that are required to file deposit insurance claims, the PDIC will start claims settlement operations for these accounts by the fourth week of July 2016.

The PDIC also announced that it will conduct a Depositors-Borrowers' Forum on July 19, 2016. It enjoins all depositors and borrowers to attend the Forum to verify with PDIC representatives if they are eligible for early payment and the manner of paying their loan obligations with the bank. Those not eligible will be informed of the requirements and procedures for filing deposit insurance claims. The time and venue of the Forum will be posted in the bank's premises and announced in the PDIC website, www.pdic.gov.ph. Likewise, the 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 premises, other public places and the PDIC website.

Rural Bank of Siaton is the first bank to be ordered closed by the MB following the effectivity on June 11, 2016 of Republic Act No. 10846 that amended the PDIC Charter.

- See more at: http://news.pia.gov.ph/article/view/1141468238623/monitory-board-prohibits-operations-of-rural-bank-of-siaton-inc-pdic-to-pay-all-valid-insured-deposit-claims#sthash.8ant3izG.dpuf

Source: The Philippine Information Agency

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