The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has issued a directive, as per MB Resolution No. 631.C dated June 6, prohibiting the Rural Bank of Cuyo (Palawan), Inc. from conducting business operations in the country.

This measure also mandated the Philippine Deposit Insurance Corporation (PDIC), acting as the receiver, to assume control of the bank and commence its liquidation process. It took over the bank on June 10.

Rural Bank of Cuyo (Palawan), Inc. operates as a two-unit rural bank, with its main office situated on Mendoza Street, Barangay Bancal, Cuyo, Palawan, and a branch lite unit in Subic Bay, Zambales.

Based on latest available records, as of March 31, 2024, the bank holds a total of 1,758 deposit accounts, with deposit liabilities amounting to ₱123.4 million. Of this sum, ₱97.1 million, or 78.7%, represents insured deposits.

The PDIC assures depositors that all valid deposits and claims will be honored, up to the maximum deposit insurance coverage of ₱500,000 per depositor.

Individual and registered entities account holders of valid deposits with balances of ₱500,000.00 and below, who have no outstanding obligations or have not acted as comakers of obligations with Rural Bank of Cuyo (Palawan), Inc. are not required to file deposit insurance claims.

These individual and registered entities must ensure that they have complete and updated addresses with the bank. Depositors may update their addresses by submitting a Mailing Address Update Form (MAUF) until June 19, either through the PDIC representatives in the bank premises, or by sending a scanned copy of said Form and valid ID to email address, cuyorb-pad@pdic.gov.ph.

MAUF will be made available at the bank premises or may be downloaded from the PDIC website at www.pdic.gov.ph. Insurance payments for valid deposits with balances of ₱500,000 and below will be made through postal money order and targeted to be sent via mail starting on June 27.

For all other depositors, filing of claims for insured deposit is targeted to start by July 5, 2024. Borrowers are likewise reminded to continue paying their loan obligations with the closed Rural Bank of Cuyo (Palawan), Inc. and to transact only with designated PDIC representatives.

For more information on the requirements and procedures for filing deposit insurance claims and settlement of loan obligations, depositors and borrowers of the bank are enjoined to attend the Depositors-Borrowers’ Forum scheduled on June 26.

Details of the Forum i.e., time and venue, will be announced later. As provided for by the PDIC Charter, 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 the Rural Bank of Cuyo (Palawan), Inc.

Letters of intent should be submitted within 60 days from takeover date 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 which can be accessed in the PDIC website. All clients of the bank may communicate with PDIC through any of the following modes: Public Assistance Hotline during office hours at (02) 8841-4141, Toll-Free Hotline at 1- 800-1-888-PDIC (7342) during office hours for those outside Metro Manila, e-mail to cuyorb-pad@pdic.gov.ph or Facebook private message.

For visits to the PDIC Public Assistance Center, clients are highly encouraged to request for an appointment which may be secured through telephone, e-mail or Facebook private message.