February 27, 2017

The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) prohibited Rural Bank of Barotac Viejo (Iloilo), Inc. from doing business in the Philippines. Under Resolution No. 284.A dated February 23, 2017, the MB directed the Philippine Deposit Insurance Corporation (PDIC) as Receiver to proceed with the takeover and liquidation of the bank. PDIC took over the bank on February 24, 2017.

Rural Bank of Barotac Viejo is a two-unit rural bank with Head Office located along Zulueta Drive, Brgy. Poblacion, Barotac Viejo, Iloilo. Its lone branch is located in Concepcion, Iloilo. Based on the Bank Information Sheet filed by the bank with the PDIC as of June 30, 2016, Rural Bank of Barotac Viejo is owned by Ramon R. Tugbang (40.00%), Patrick S. Tugbang (14.24%), Margarita T. Cajilig (13.98%), Marie S. Tugbang (13.22%), Hugo Mateo F. Tugbang (12.81%), and Erlinda D. Pomado (3.51%). The Bank’s Chairman and President is Ramon R. Tugbang.

Latest available records show that as of December 31, 2016, Rural Bank of Barotac Viejo had 4,079 deposit accounts with total deposit liabilities of PHP142.5 million. Total insured deposits amounted to PHP117.8 million equivalent to 82.7% of total deposits.

PDIC assured depositors that all valid deposits and claims shall be paid up to the maximum deposit insurance coverage of PHP500,000.00. Depositors with valid deposit accounts with balances of PHP100,000.00 and below shall be eligible for early payment and need not file deposit insurance claims, except accounts maintained by business entities, or when they have outstanding obligations with Rural Bank of Barotac Viejo or acted as co-makers of these obligations. Depositors have to ensure that they have complete and updated addresses with the bank. They may update their addresses until March 6, 2017 using the Mailing Address Update Forms to be distributed by PDIC representatives at the bank premises.

For depositors who are required to file claims for deposit insurance, the schedule of claims settlement operations will be announced as soon as possible through posters in the bank premises and in other public places, the PDIC website, www.pdic.gov.ph, and PDIC’s official Facebook account. PDIC also reminded borrowers to continue paying their loan obligations with the closed Rural Bank of Barotac Viejo and to transact only with designated PDIC representatives at the bank premises. For more information on the requirements and procedures for filing claims and settlement of loan obligations, all depositors and borrowers of the bank are enjoined to attend the Depositors-Borrowers' Forum which will be held in venues near the two banking offices of the bank on March 9-10, 2017. Details will be posted in the bank premises and in other public places.

Depositors may communicate with PDIC Public Assistance personnel stationed at the bank premises or call the PDIC Public Assistance Hotlines at (02) 841-4630 to (02) 841-4631, or send their e-mail to pad@pdic.gov.ph. Depositors outside Metro Manila may also call PDIC at its Toll Free Hotline at 1-800-1-888-PDIC (7342). 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 P500,000 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.