Business
Rural Bank of Subangdako-Dumaguete branch closes shop
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Jan 7, 2009 - 10:46:04 AM

DUMAGUETE CITY, Jan. 8 (PNA) -- The Rural Bank of Subangdako (RBS)-Dumaguete branch has closed shop after experiencing massive withdrawals of deposits the past weeks.

RBS clients here were caught by surprise upon seeing the notice posted at the bank premises on Monday, which said it has declared a bank holiday and is awaiting for the Philippine Deposit Insurance Corporation (PDIC) to assume the same without stating the reasons.

This prompted RBS depositors to troop to the Bangko Sentral ng Pilipinas (BSP) in Dumaguete to inquire about the status of the bank.

Even the local BSP branch was not informed about the declaration of a bank holiday by RBS, according to Paulita Enrile, head of the local BSP.

It was learned that the main RBS branch in Mandaue, Cebu has informed the BSP in Manila about the declaration of a bank holiday.

The bank has to undergo a thorough evaluation before its assumption by the PDIC, Enrile pointed out.

This brought to four the number of rural banks being turned over to the PDIC for receivership in the province.

These are the Rural Bank of Bais in Bais City and its branch in Tanjay City and the Pilipino Rural Bank, all under the Legacy group of companies and the impending turnover of the RBS.

Enrile reiterated pronouncements that this represents a tiny fraction of the entire banking system.

The local BSP branch officer said it was waiting for RBS to avail of the emergency loan package after experiencing massive withdrawals of deposits.