BSP shuts down Tagbilaran rural bank
By Joey A. Gabieta
Philippine Daily Inquirer
First Posted 15:20:00 09/22/2009
Filed Under: Banking
TACLOBAN CITY, Philippines - When he sent his assistant to withdraw money from the Philippine Farmersâ€™ Bank branch in Tagbilaran last Friday, tailoring shop owner Johnny Mallari did not have an inkling the bank was no longer operating.
To Mallariâ€™s shock, his assistant came back and told him that the bank, where he had deposited a sizeable amount, was closed.
According to a notice placed at the bank's entrance and signed by Imelda Singzon, Philippine Deposit Insurance Corp. (PDIC) executive vice president, the PDIC placed the bank under receivership through Resolution No. 1313 dated Sept. 17 that took effect on Sept. 18.
"Officers and employees of the bank are no longer authorized to transact business or enter any contract for and on behalf of the bank," part of the notice said.
Virgilio Cayanong, the manager of the bank with 10 staff members, was not around and could not be contacted for an interview.
Mallari, who opened his savings account with the bank in 2007, said he has been worrying over how to get back his money from the bank, which had thousands of clients.
But a PDIC employee, who declined to be identified for lack of authority to speak on the matter, assured depositors on Tuesday that they could claim their deposits in "due time."
However, she would not disclose the reason for the bank closure.
She said the PDIC has started verifying bank records on deposits and number of depositors, among others, but this could take several weeks.
Leonides Sumbi, Bangko Sentral ng Pilipinas regional manager, said bank depositors need not fear the PDIC takeover of the bank because it was done to protect depositorsâ€™ interests.
The Philippine Farmers' Bank's main office is in Cagayan de Oro City and it has branches in Ormoc City, Leyte and Catbalogan in Samar.