The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has closed down the operation of the Palawan Bank (also Palawan Development Bank, Inc.) and has prohibited it from doing business anywhere in the country.

The MB ordered the shut down of the largest private banking network in the province through Resolution 660 issued on May 2, which pursuant to Section 30 of The New Central Bank Act.

In a press statement released on Monday by the Philippine Deposit Insurance Corporation (PDIC), it said it has been directed as receiver to takeover Palawan Bank and proceed with liquidation effective May 6.

As of December 31, 2018, the thrift bank reportedly has 19,857 deposit accounts with total deposit liabilities of around P503 million. Of this, 81 percent or P408 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. Individual account holders of valid deposits with balances of P100,000 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 Palawan Bank (Palawan Development Bank), Inc.,” the PDIC said in the statement.

The PDIC said individual depositors must ensure they have complete and updated addresses with the bank.

PDIC representatives, it added, will be distributing Mailing Address Update Forms at the bank premises and depositors may submit the forms until May 21, 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, and PDIC’s official Facebook account.

“The PDIC also reminded borrowers to continue paying their loan obligations with the closed Palawan Bank and to transact only with designated PDIC representatives at the bank premises,” the statement further advised.

For more information on the requirements and procedures for the filing of claims for deposit insurance and settlement of loan obligations, the PDIC said “all depositors and borrowers of the bank are enjoined to attend the Depositors-Borrowers’ Forum on May 27, 2019. Details will be posted in the bank premises and in other public places.”

Pursuant to Section 13 of R.A. 3591, as amended, the 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 Palawan Bank within 60 days after 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 at its website.

The Palawan Bank is a 10-unit thrift bank with Head Office located at Unit 1 Goldraz Properties Bldg., Malvar St., Brgy. San Miguel.

It has nine branches, five of which are located in Brooke’s Point, Narra, Quezon, Roxas, and Taytay, and four in Carcar, Liloan, Minglanilla, and Naga, in Cebu.

Palawan News tried to reach the Palawan Bank for comments regarding the matter, but no one was available.