The Rural Bank of Guihulngan in Negros Oriental is closed by the Monetary Board (MB) of the Bangko Sentral ng Pilipinas. They are prohibited from doing business in the Philippines through MB Resolution No. 754.A dated May 23, 2019, which also directed the Philippine Deposit Insurance Corporation (PDIC) as Receiver to proceed with the takeover and liquidation of Rural Bank of Guihulngan. PDIC took over the bank on May 24, 2019.
Rural Bank of Guihulngan City
The Rural Bank of Guihulngan is a single-unit rural bank located at Sikatuna St., Poblacion, City of Guihulngan, Negros Oriental. The latest available records show that as of March 31, 2019, the bank has 933 deposit accounts with total deposit liabilities of PhP5.95 million, of which 99.85% or PhP5.94 million are insured deposits.
What happens to the accounts?
The Philippine Deposit Insurance Corporation assured depositors that all valid deposits and claims shall be paid up to the maximum deposit insurance coverage of Php 500,000.00. Individual account holders of valid deposits with balances of Pho 100,000.00 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 Rural Bank of Guihulngan. These individual depositors must ensure that they have complete and updated addresses with the bank. PDIC representatives will be distributing Mailing Address Update Forms at the bank premises and depositors may submit the forms until May 29, 2019.
For business entities and all other depositors who are required to file claims for deposit insurance, the schedule for the filing of claims will be announced 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 closing of the local bank and to transact only with designated PDIC representatives at the bank premises.
For more information on the requirements and procedures for the filing of claims for deposit insurance and settlement of loan obligations, all depositors and borrowers of the bank are enjoined to attend the Depositors-Borrowers’ Forum on June 4, 2019. Details will be posted in the bank premises and in other public places.
Pursuant to Section 13 of R.A. 3591, as amended, PDIC shall likewise accept Letters of Intent from interested banks and non-bank institutions for possible Purchase of Assets and Assumption of Liabilities (P&A) as a mode of liquidating Rural Bank of Guihulngan within sixty (60) days from PDIC takeover subject to compliance with the requirements prescribed under the Guidelines in Pre-qualifying Proponents and Evaluating the Proposals for Purchase of Assets and Assumption of Liabilities Mode of Liquidating Closed Banks posted in the PDIC website.