The Monetary Board placed the Rural Bank of Banayoyo (Ilocos Sur), Inc. under the receivership of the Philippine Deposit Insurance Corporation (PDIC) by virtue of MB Resolution No. 870.A dated May 31, 2012. As Receiver, PDIC took over the bank on June 1, 2012.

RB Banayoyo is a single-unit bank located in Poblacion, Banayoyo, Ilocos Sur. Latest available records show that as of March 31, 2012, the Bank had 324 accounts with total deposit liabilities of P4.26 million. According to the latest General Information Sheet filed by RB Banayoyo with the Securities and Exchange Commission, the bank is majority-owned by Saturnino L. Mangugan (39.36%) and Daniel M. Galang (16.86%). Its Chairman and President is Franklin L. Mangugan.

In a statement, PDIC said that upon takeover, all bank records shall be gathered, verified and validated. The state deposit insurer assured depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of P500,000.

PDIC said that depositors with valid account balances of P10,000 and below, who have no outstanding obligations with RB Banayoyo and who have updated their addresses with the bank in the past year, need not file deposit insurance claims. PDIC targets to start mailing payments to the depositors with small balances to their last known addresses recorded in the bank by early July 2012.

Depositors whose accounts have balances of more than P10,000 and those who have outstanding obligations regardless of the amount of their balances or who have failed to update their addresses should file their deposit insurance claims. The inclusive dates and schedule of the claims settlement operations for these accounts will be announced in August 2012 through notices to be posted in the bank premises and other public places as well as through the PDIC website, www.pdic.gov.ph, newspapers and radios as soon as details are finalized.

A Depositors Forum will be conducted on Thursday, June 7, 2012 to inform depositors of the requirements and procedures for filing deposit insurance claims. Claim forms will also be distributed during said Forum. The schedule and venues of the Depositors Forum will be posted in the bank premises and in the PDIC website, www.pdic.gov.ph.

According to PDIC, depositors who have balances of P10,000 and below but whose addresses in the bank records may not have been updated or are incomplete may update their addresses with PDIC representatives at the bank premises. Depositor Update Forms will be distributed to depositors during the Depositors Forum for them to accomplish, and will also be made available at the bank premises. These should be accompanied by a photo-bearing ID of the depositor with his signature.

For more information, depositors may communicate with PDIC Public Assistance personnel stationed at the bank premises. They may also call the PDIC Public Assistance Hotlines at (02) 8414630 to (02) 8414631 or communicate through e-mail at pad@pdic.gov.ph.

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 permanent and continuing 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.