The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, said it closed down two financially-ailing banks based in Mandaluyong City and Batangas City.
The board prohibited AMA Rural Bank of Mandaluyong Inc. and Maximum Savings Bank Inc. from doing business in the Philippines on Nov. 7 2019, pursuant to Section 30 of Republic Act No. 7653 (The New Central Bank Act), as amended.
This brought the number of banks placed under the receivership of Philippine Deposit Insurance Corp. this year to 11.
It said the closures of AMA Rural Bank and Maximum Savings were “not expected to adversely affect the Philippine banking system considering their relatively small size.”
“As of June 30, 2019, their total assets are equivalent to only 0.02 percent and 0.002 percent, respectively, of the total assets of the banking system,” the BSP said.
AMA Rural Bank has a network of 10 branches with its main branch located in Mandaluyong City and the other branches in Pasig City; Cainta and Morong, Rizal; Bacoor, Cavite; San Pablo and Calamba
cities in Laguna; Baliuag, Bulacan; San Fernando, Pampanga; and Baguio City.
The board said AMA Rural Bank of Mandaluyong had related companies but these were not under the supervision of the BSP. It said the BSP only took action on the bank pursuant to its mandate under Section 30 of its Charter.
Meanwhile, Maximum Savings Bank has a network of three branches with its main branch located in Batangas City and the other branches in Sabang and Calapan City in Oriental Mindoro.
“The overall Philippine banking system remains sound and stable with ample liquidity and high level of capitalization as BSP continues to promote good governance among its supervised institutions to ensure the soundness of the banking system and to protect the interest of the banking public,” the board further said.
It said the state-run Philippine Deposit Insurance Corp. was ready to service valid deposit claims from depositors of the two closed banks and complete the processing of claims in accordance with the guidelines of the PDIC.
Prior to the two closures, the board also shut down the operations of Rural Bank of Lemery Inc. in Batangas, the Rural Bank of Larena (Siquijor) Inc. and the Bulacan-based East Coast Rural Bank of Hagonoy Inc. The board closed six other banks earlier this year.
