The Philippine Deposit Insurance Corp. (PDIC) has taken over the liquidation of Oriental Tamaraw Rural Bank of Naujan in Oriental Mindoro.

In a recent statement, the PDIC said the Bangko Sentral ng Pilipinas (BSP) ordered the rural bank to be closed under its Monetary Board Resolution 437, which was signed on 8 May.

The PDIC liquidates a bank if the lender fails to maintain the BSP-required minimum capital adequacy ratio of 10 percent.

The PDIC distributes a maximum insurance of P1 million to each depositor as a relief to the depositors of an unhealthy bank.

91.4% deposits insured

The PDIC said the rural bank registered 2,996 deposit accounts and total deposit liabilities of P98.6 million as of 31 December 2024. From that amount, the PDIC said 91.4 percent or P90.1 million are insured deposits.

A depositor-borrowers forum on 30 May will feature PDIC representatives discussing the requirements and procedures for filing deposit insurance claims and settling loan obligations. The PDIC said it would soon announce the venue details.

However, the insurer added that the filing of deposit insurance claims is not required for individual account holders and registered entities with valid deposit balances of P500,000 and below, have no outstanding obligations or have not acted as co-makers of obligations with the rural bank.

“Borrowers are likewise reminded to continue paying their loan obligations with the closed Oriental Tamaraw Rural Bank of Naujan (Oriental Mindoro) Inc. and to transact only with designated and duly authorized PDIC representatives,” PDIC said.

The PDIC also announced that banks and non-bank entities can submit until 14 July 2025 their letters of intent to purchase assets of the closed rural bank and assume its liabilities.

Oriental Tamaraw Rural Bank of Naujan operated only one branch and had a head office in Barcenaga, Naujan in Oriental Mindoro. The rural bank was established on 1 September 1993.