NEWS/PRESS RELEASE
PR-183-19
Date of Release: December 11, 2019
FOR IMMEDIATE RELEASE

The Philippine Deposit Insurance Corporation (PDIC) asked the Court of Appeals (CA) to lift and dissolve the temporary restraining order (TRO) prohibiting the PDIC from implementing the closure order of AMA Rural Bank of Mandaluyong, Inc. (AMA Bank). The PDIC explained that while the TRO is effective, it shall have no access to bank records and documents used as basis to settle claims for deposit insurance of depositors of AMA Bank. According to PDIC, this becomes necessary as it found huge discrepancies in the Bank’s deposit data.

The PDIC said, based on records seen on the day it took over AMA Bank on November 8, 2019, and prior to the issuance of the TRO, the data available in the Bank’s deposit system was as of April 30, 2019 with total deposits of P4,963,021,833.17 consisting of 11,535 accounts. These are significantly higher than the reported figures to the PDIC as of June 30, 2019 with total deposits of only P1,448,522,577.30 representing 8,434 accounts. Because of discrepancies in the data on deposits coupled with the absence of real-time recording of transactions on deposits in the deposit system, it becomes even more necessary for the PDIC to validate the Bank’s records and documents.

The TRO was issued by the CA Third Division on November 25, 2019 in favor of the majority stockholders of the closed AMA Bank. For a period of 60 days, the Bangko Sentral ng Pilipinas (BSP) and the PDIC are restrained from implementing the Monetary Board Resolution which directed the closure of AMA Bank and its placement under the PDIC liquidation. As a result of the TRO, the PDIC was constrained to stop its liquidation operations.

Earlier, after directors, accountable officers and employees of the Bank refused to turn over records under their accountabilities, possession and custody, the PDIC pursued standard alternative procedures to commence the inventory-taking of the records of the closed AMA Bank in the presence of persons in authority.

The PDIC stressed that notwithstanding the TRO, AMA Bank remains closed and under liquidation by the PDIC. Depositors and clients of AMA Bank are advised to communicate only with the PDIC.

Depositors, creditors and borrowers of AMA Bank may visit the PDIC official website, www.pdic.gov.ph, and facebook account for information and further developments. They may also communicate with PDIC by calling the PDIC Public Assistance Hotline (02) 8841-4141 during office hours. 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 email to pad@pdic.gov.ph or thru 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.
PHILIPPINE DEPOSIT INSURANCE CORPORATION
Tel: (02) 8841-4636 to 39
Trunkline: (02) 8841-4000
Website: www.pdic.gov.ph.
Email: ccd@pdic.gov.ph
Facebook: www.facebook.com/OfficialPDIC
Twitter: www.twitter.com/OfficialPDIC