NEcija bank under receivership | The Manila Times

A RURAL bank in Nueva Ecija province has been closed and placed under receivership by the Bangko Sentral ng Pilipinas (BSP).

In a Friday circular, the central bank revealed that its Monetary Board had ordered the liquidation of Banco Rural de General Tinio (BRGT) Inc. in a June 9 decision.

“The Philippine Deposit Insurance Corp. (PDIC) has been designated as receiver with a directive to proceed with the takeover and liquidation of the aforementioned rural bank in accordance with Section 12 (a) of RA (Republic Act) 359 (PDIC charter), as amended,” BSP Deputy Governor Chuchi Fonacier said.

The address of BRGT’s office, according to the Bangko Sentral, is PCL-311, Bonifacio Street, Barangay Poblacion Central, General Tinio, Nueva Ecija province.

It was the seventh bank to be placed under the receivership of the government-owned deposit insurance this year. Depositors of PDIC-owned banks were eligible for compensation up to the maximum insurance coverage of P500,000.

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PDIC said a bank that has been placed in liquidation will not be allowed to reopen or resume banking operations as required by its charter or RA 3591.

“Furthermore, Section 12 thereof expressly provides that banks closed by the Monetary Board shall no longer be rehabilitated,” it continued.

The state-run insurer also said that the bank’s directors, officials, and stockholders’ powers, functions and duties were terminated once the bank was placed under liquidation.

As a result, the bank’s directors, officers and investors were barred from interfering with the bank’s assets, papers or affairs in any way.

PDIC also said that all of the bank’s assets were presumed to be in the receiver’s custodia legis, meaning they were not subject to attachment, garnishment, execution, levy, or any other court action.

In 2021, the Monetary Board closed 13 banks and placed them all under the supervision of the PDIC.