Rural bank in Cebu shuts down; depositors shocked

CEBU CITY, Philippines—The depositors of the Rural Bank of San Fernando (Cebu) Inc. were stunned to discover on Friday that the bank had shut down.

“Yes, we were really shocked. Some were even placing deposits in their accounts (Thursday) and there was no warning that the bank will close,” said a female depositor employed with the San Fernando Municipal Hall.

The depositor, who asked not to be named, said she learned that a retiree had just deposited P2 million in the bank.

“We trusted the bank because it [has been] in operation [since] we were still children,” she said, adding that she has been a client of the bank for almost five years.

The personnel of the Philippine Deposit Insurance Corporation took over the rural bank Friday after the Monetary Board placed it under the receivership based on MB Resolution No. 1087 issued on Thursday.

The depositor said she went to the bank at 10:30 a.m. Friday upon hearing rumors about the bank closure.

She said more than 100 depositors gathered outside the bank. Aside from government employees, the bank’s depositors also included businessmen, vendors and retirees, she added.

She said she had almost P10,000 in bank deposit–money she had saved from her salary for her children’s education.

But she was relieved, she said, when PDIC personnel assured them their deposits would be paid upon submission of required documents.

The PDIC has scheduled a meeting with the depositors on July 10.

Junjun Tapuyao, an employee of the San Fernando Treasurer’s Office, said he had more than P4,000 deposited in the bank.

Just last week, he said, he deposited extra money from his meager salary without knowing that the bank would shut down.

Had he known earlier, he would not have made that deposit, he said.

The PDIC, in a statement in its website, described the Rural Bank of San Fernando as a single-unit bank with 3,341 accounts with total deposit liabilities of P83.41 million as of Dec. 31, 2012. The PDIC disclosed that 99.76 percent or 3,333 deposit accounts had balances of P500,000 or less, which were fully covered by deposit insurance.

This comprised of a total insured deposits amounting to P76.81 million or 92.09 percent of the total deposits.

The bank’s latest information sheet dated December 31, 2010 stated that it is majority owned by Milagros A. Villasor (34.72 percent), Guillermo A. Villasor Jr. (8.37 percent), Edwin A. Villasor (7.34 percent), John Robert A. Villasor (7.15 percent), Patrick A. Villasor (6.99 percent), Catalina T. Cuenco (6.87 percent) and Josefina T. Cuenco (6.26 percent). Its chairman and president is Milagros A. Villasor.

Meanwhile, the PDIC will first gather, verify and validate all bank records upon the takeover of the bank, before they can process the claims of the depositors.

The PDIC had announced that depositors who had deposits of P15,000 and below  (valid deposits) will not be required to file deposit insurance claims.

The mailing of their payments for these depositors will be done not later than July 17.

“But depositors who have outstanding obligations with the Rural Bank of San Fernando including co-makers of the obligations, and have incomplete and/or have not updated their addresses with the bank, regardless of amount, should file deposit insurance claims,” the statement said.