San Fernando Rural Bank, Inc. (photo handout from PDIC)
The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) closed the San Fernando Rural Bank, Inc. and placed it under receivership of the Philippine Deposit Insurance Corporation (PDIC).
The MB issued Resolution No. 1514.A dated November 26, 2020 ordering the PDIC to proceed with the takeover and liquidation of the bank. PDIC took over the bank on November 27, 2020.
In a statement, the state deposit insurance agency said its field personnel will follow its health protocols and the health protocols of City of San Fernando including Covid-19 testing and observance of quarantine “for the safety of the bank clients, local residents, and PDIC personnel.”
The PDIC said its field personnel will resume takeover operations in the bank premises on December 7, 2020.
San Fernando Rural Bank, Inc. is a single-unit rural bank located at G/F Safer Bank Bldg., A. Consunji St., Brgy. Santo Rosario (Pob.), City of San Fernando, Pampanga. According to the PDIC, latest available records show that as of March 31, 2020, San Fernando Rural Bank, Inc. has 1,349 deposit accounts with total deposit liabilities of PhP76.6 million, of which 80.5% or PhP61.7 million are insured deposits.
The PDIC assured depositors of the shuttered rural bank that all valid deposits and claims will be paid up to the maximum deposit insurance coverage of PhP500,000.00 per depositor.
“Individual account holders of valid deposits with balances of PhP100,000.00 and below do not need to file deposit insurance claims, provided they have no outstanding obligations or have not acted as co-makers of obligations with San Fernando Rural Bank, Inc. These individual depositors must ensure that they have complete and updated addresses with the bank,” the PDIC said.
It added that insurance payments for valid deposits with balances of PhP100,000.00 and below will be made through postal money order and targeted to be sent via mail starting on December 21, 2020.
The PDIC said it will conduct a virtual Depositors-Borrowers’ Forum on December 21, 2020 for depositors and borrowers of the bank more information on the requirements and procedures for filing deposit insurance claims and settlement of loan obligations.
San Fernando Rural Bank, Inc. is the fourth bank ordered closed by the Monetary Board for this year. Rommel F. Lopez