PDICtakes over Cagayan bank

BAYOMBONG, Nueva Vizcaya– A rural bank based in Santiago City, Isabela with branches all over Cagayan Valley has been placed under receivership after it started experiencing liquidity problems in recent months amid the global economic crunch.

Nathaniel Tumbocan, information officer of the Philippine Deposit Insurance Corp. (PDIC), said the takeover of Banco Agricola Inc., which started May 22, was based on a resolution of the Bangko Sentral ng Pilipinas dated May 21.

An ailing bank is placed under receivership to protect its assets and depositors while investigation is underway into its possible insolvency or other violations.

Formerly called the Consolidated Rural Bank of Cagayan Valley, Banco Agricola has at least 3,000 depositors across the region with deposits totaling P77.13 million.

Aside from its main office in Santiago City, the bank has branches in Maddela, Quirino; Bambang, Nueva Vizcaya; and Cordon, San Isidro, Echague, San Mateo, Cabatuan, Aurora, Roxas and Ilagan, all in Isabela.

Tumbocan said the PDIC has undertaken a general survey of the bank’s finances before determining whether it should be placed under receivership in preparation for its possible closure.

As a result, except for the collection of outstanding loans, Banco Agricola’s other transactions, including withdrawals and deposits in all of its 10 branches, have been stopped.

PDIC representatives, however, assured depositors that they would eventually recover their deposits in the soonest time possible.

“Each depositor is guaranteed a maximum insurance coverage of P250,000 which is the maximum amount (to be recovered),” Tumbocan said. -- CL