The Philippine Deposit Insurance Corporation (PDIC) took over The Bank of Cebu (A Development Bank), a multi-unit private thrift bank, on August 31, 2006 after the Monetary Board (MB) of the Bangko Sentral ng Pilipinas ordered the closure of the bank by virtue of MB Resolution No. 1090 dated August 31, 2006.

A seven-unit bank based in Cebu City, The Bank of Cebu has branches in Carcar, Consolacion, Lapu-Lapu, Mandaue, Mactan Export Processing Zone and Tabunoc. Its head office is located at 131 Manalili Street corner Osmeña Blvd., Cebu City. As of June 30, 2006, the estimated insured deposits of the bank amounted to P171.30 million representing 7,870 accounts, which is about 70% of the total deposit amount of P244.39 million.

In a statement, PDIC said that upon takeover, all bank records would be verified and validated in preparation for the payout operations. The PDIC advised depositors of the closed bank to wait for further announcement on the schedule of claims servicing. Under Republic Act 9302 that amended the PDIC Charter effective August 12, 2004, the maximum deposit insurance coverage is now P250,000 per depositor.