BSP shuts down Palawan Bank

The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has closed down The Palawan Bank (Palawan Development Bank) Inc., as its total deposit liabilities have breached P500 million.

The Philippine Deposit Insurance Corp. (PDIC), in a statement released Monday, said it has stepped in as received for the lender which was found to be unfit to remain in business effective May 6, 2019.

This comes as latest available records showed that The Palawan Bank ended 2018 with 19,857 deposit accounts with total deposit liabilities of P503 million, some 81% or P408.0 million of which were registered to have been insured deposits.

Palawan Bank is a 10-unit thrift bank, with its head office located on Malvar Street in Barangay San Miguel in Puerto Princesa.

It has nine branches: five in Palawan (Brookes Point, Narra, Quezon, Roxas, and Taytay), and four in Cebu (Carcar, Liloan, Minglanilla, and Naga).

The PDIC said all valid deposits and claims will be paid up to the maximum deposit insurance coverage of P500,000.

"Individual account holders of valid deposits with balances of PhP100,000.00 and below do not need to file deposit insurance claims, provided they have no outstanding obligations or have not acted as co-makers of obligations with The Palawan Bank (PalawanDevelopment Bank), Inc.," it said.

"These individual depositors must ensure that they have complete and updated addresses with the bank. PDIC representatives will be distributing Mailing Address Update Forms at the bank premises and depositors may submit the forms until May 21, 2019," added the PDIC. — BM, GMA News