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September 24, 2023

PDIC advises shuttered bank’s borrowers to fulfill loan obligations

The Philippine Deposit Insurance Corp. (PDIC) has issued a statement urging borrowers of Rural Bank of San Juan (Southern Leyte) Inc., which has already been closed, to continue paying off their loans.

The PDIC, as the statutory receiver of the closed rural bank, emphasized that borrowers should only transact with authorized representatives of the government agency and clarified that it has not engaged any other parties to collect loan payments on behalf of the bank.

Additionally, the PDIC encouraged borrowers to take advantage of the enhanced “Closed Bank Loan Incentive Program” (CLIP), which offers significant discounts for qualifying borrowers who make a one-time cash payment to settle their entire balance.

The Rural Bank of San Juan (Southern Leyte), a single-unit rural bank, was closed by the Monetary Board through Board Resolution 662.B on May 25.

The PDIC assumed control of the bank, including its assets, records, and affairs, on May 29.

According to the PDIC Charter, a bank under liquidation cannot be reopened or allowed to resume banking operations, and banks closed by the Monetary Board are explicitly prohibited from rehabilitation.


Three rural banks merge to enhance financial stability

Three rural banks have successfully merged in a move aimed at bolstering their financial stability, as confirmed by the Bangko Sentral ng Pilipinas (BSP). The merger officially took effect on July 13, following the necessary regulatory approvals, as detailed in a circular letter signed by Bankero and BSP Deputy Governor Chuchi G. Fonacier on September 15.

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