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Bangko Sentral closes Lemery Bank

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LEMERY, Batangas – WHILE the government reported that the annual inflation rate edged down to 0.8 percent in October 2019 and is the lowest inflation rate since April 2016, economy’s metrics may have different movement in the banking sector particularly, in the countryside.

As the Filipino families went to cemeteries to visit their love ones in their graveyards, the Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) hit local banking sector as it prohibited Rural Bank of Lemery, Inc. from doing business in the Philippines through MB Resolution No. 1660.A dated October 31, 2019. It also directed the Philippine Deposit Insurance Corporation (PDIC) as receiver to proceed with the takeover and liquidation of the bank which the latter did on November 4, 2019.

Rural Bank of Lemery is a single-unit rural bank located on Illustre Ave., Brgy. District I in Poblacion here.

Latest available records show that as of June 30, 2019, Rural Bank of Lemery has 1,096 deposit accounts with total deposit liabilities of PhP69.56 million, of which 93.29% or PhP64.9 million are insured deposits.

PDIC assured depositors that all valid deposits and claims shall be paid up to the maximum deposit insurance coverage of PhP500,000.00. 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 Rural Bank of Lemery.  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 November 7, 2019.

For business entities and all other depositors who are required to file claims for deposit insurance, the schedule for 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 closed Rural Bank of Lemery and to transact only with designated PDIC representatives at the bank premises.

For more information on the requirements and procedures for 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 November 12, 2019.  Details will be posted at 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 Lemery 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.

The Rural Bank of Lemery is the 9th bank to have been ordered closed this year.|-Balikas News Network

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