BSP shuts down rural bank in Medellin; PDIC takes over

THE Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has ordered the closure of the Community Rural Bank of Medellin (Cebu) Inc. on Thursday, Nov. 14, 2024.

The Philippine Deposit Insurance Corp. (PDIC) took over the bank on Friday, Nov. 15.



Community Rural Bank of Medellin (Cebu) Inc. is a single-unit rural bank with its head office located on Jose Rizal St., Barangay Poblacion, Medellin.

As of Sept. 30, the rural bank has total deposit liabilities of P35.1 million consisting of 1,051 deposit accounts, 92.

3 percent of which, or P32.4 million, are insured deposits. The PDIC assured its depositors that all valid insured deposits will be paid, with coverage of up to P500,000 per depositor.

The state insurer said depositors with account balances of P500,000 or below and no loans or co-maker obligations with the Community Rural Bank of Medellin (Cebu) Inc. do not need to file claims. It also asked the bank’s clients to ensure that their address is updated by submitting a Mailing Address Update Form by Nov.

25. The form can be submitted at the bank, sent via email to [email protected].

ph, or downloaded from the PDIC website. Payments will start on Dec. 4 via postal money order or Landbank Visa Debit Card.

For other depositors, claim filing begins on Dec. 12. Borrowers must continue paying loans to PDIC-authorized representatives.

A Depositors-Borrowers’ Forum is scheduled for Dec. 2, with details to follow. Moreover, banks or institutions interested in purchasing assets or assuming liabilities must submit a letter of intent within 60 days of PDIC’s takeover.

Guidelines are available on the PDIC website. / KOC.