THE Monetary Board (MB) has ordered the Rural Bank of Talisay (Cebu) Inc. to stop doing business and be placed under liquidation and receivership of the Philippine Deposit Insurance Corp. (PDIC).
The PDIC took over the bank on Friday, Sept. 22, 2023.
The highest policy making body of the Bangko Sentral ng Pilipinas (BSP) has yet to release a statement on the reason for the bank’s closure order.
It can be recalled that in August 2022, the MB approved Resolution 1145, which raised minimum capital requirements for rural banks.
Affected entities were given five years to comply.
The requirements set the minimum capital for rural banks with a head office as well as those with up to five branches at P50 million (from P10 million); those with six to 10 branches at P120 million (from P15 million); and those with more than 10 branches at P200 million (from P20 million).
This move is part of initiatives under the Rural Bank Strengthening Program, intended to enhance operations, capacity and competitiveness of these banks.
According to the central bank, “a strong capital base enables rural banks to enhance their risk management systems, upgrade resources and manage operational costs, meet prudential standards, and accelerate digital transformation.”
Rural Bank of Talisay is a single-unit rural bank with head office located on Cebu South Road, Tabunok, Talisay City.
It was founded in 1965 by spouses Ruperto Banzon Villo and Florentina Despi Villo.
Latest available records show that as of March 31, the bank had 3,102 deposit accounts with total deposit liabilities of P93.1 million, of which 69.4 percent or P64.7 million were insured deposits.
The state-run bank deposit insurer assured depositors that all valid deposits and claims will 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, who have no outstanding obligations or have not acted as co-makers of obligations with Rural Bank of Talisay, are not required to file deposit insurance claims.
According to the news release sent by the PDIC, these individual depositors must ensure that they have complete and updated addresses with the bank. Depositors may update their addresses by submitting a Mailing Address Update Form (Mauf) by Oct. 5 either through the PDIC representatives in the bank premises, or by sending a scanned copy of said form and valid ID to talisay-pad@pdic.gov.ph. Mauf will be made available at the bank premises or may be downloaded from the PDIC website at www.pdic.gov.ph.
Insurance payments for valid deposits with balances of P100,000 and below will be made through postal money order and targeted to be sent via mail starting on Oct. 18.
For business entities and all other depositors, filing of claims for insured deposit is targeted to start by Oct. 25.
Borrowers are likewise reminded to continue paying their loan obligations with the closed rural bank and to transact only with designated PDIC representatives.
The Rural Bank of Talisay Inc. is the seventh rural bank the BSP closed this year.
The regulator also shut down the United Consumers Rural Bank, Bangko Pangasinan – A Rural Bank, Rural Bank of San Juan (Southern Leyte), Binangonan Rural Bank, Rural Bank of San Marcelino, and Rural Bank of San Agustin (Isabela).