TRO prevents PDIC from continuing its liquidation operations on AMA Bank
The Philippine Deposit Insurance Corporation (PDIC) is now constrained to stop its liquidation operations in the closed AMA Rural Bank of Mandaluyong, Inc. (AMA Bank) for a period of 60 days from 26 November 2019. This was following the issuance of a Temporary Restraining Order (TRO) by the Court of Appeals which prohibited the Bangko Sentral ng Pilipinas (BSP) and the PDIC from further implementing the closure order of AMA Bank. The TRO was issued after the Majority Stockholders of AMA Bank questioned Monetary Board Resolution No. 1705.D dated November 7, 2019.
On November 8, 2019, the PDIC took over the assets and affairs of the closed AMA Bank. However, accountable directors, officers and employees refused to account for, surrender and turn over records under their accountabilities, custody and possession, despite demand.
The PDIC earlier said that the refusal to account for, surrender and turn over records shall delay the payment of the claims of AMA Bank’s depositors for insured deposit. The PDIC has since adopted alternative procedures, although with great difficulty. Faced with another setback, the TRO prevents the PDIC from further continuing the inventory-taking of bank records during the 60 days of its effectivity. As explained by the PDIC during the series of meetings with depositors, without the bank records, the PDIC will be unable to immediately pay the claims of depositors for insured deposits.
PDIC President Roberto B. Tan said, “We assure our depositing public that the PDIC’s paramount commitment is to expedite the validation of bank records to be able to immediately pay the insured depositors of AMA Bank. We have in fact resorted to alternative procedures to do just that when the TRO was issued. We appeal to the depositors for their understanding.”
In the meantime, the PDIC will pursue legal remedies. The PDIC shall advise depositors, creditors and borrowers of AMA Bank of any further developments through announcements made at PDIC’s official website, www.pdic.gov.ph, and Facebook account, and through local media networks. They may communicate with PDIC by calling the PDIC Public Assistance Hotline (02) 8841-4141 during office hours or send emails to email@example.com. Concerned clients of the bank who are outside Metro Manila may also call PDIC at its Toll Free Hotline at 1-800-1-888-PDIC (7342) during office hours. Inquiries may also be sent via private message to the official PDIC Facebook account at www.facebook.com/OfficialPDIC.
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The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is PhP500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.
PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.
Corporate Communications Dept.