The Rural Bank of San Juan in Southern Leyte. (Photo courtesy of Philippine Deposit Insurance Corporation)

TACLOBAN CITY – The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has shut down the Rural Bank of San Juan (Southern Leyte), Inc., affecting over 1,000 depositors in the province.

The MB issued Resolution No. 662.B on May 25, 2023, directing the Philippine Deposit Insurance Corporation (PDIC), as receiver, to proceed with the takeover and liquidation of the bank.

The PDIC said in a statement late Tuesday that they took over the bank on May 29, 2023. The single-unit rural bank in the town center San Juan, Southern Leyte has 1,007 deposit accounts with PHP37 million total deposit liabilities and PHP20.8 million insured.

The PDIC said all valid deposits and claims would be paid up to the maximum deposit insurance coverage of PHP500,000 per depositor.

"Individual account holders of valid deposits with balances of PHP100,000.00 and below, who have no outstanding obligations or have not acted as co-makers of obligations with Rural Bank of San Juan (Southern Leyte), Inc., are not required to file deposit insurance claims," it said.

These individual depositors must ensure they have complete and updated addresses with the bank. Depositors may update their addresses by submitting a mailing address update form (MAUF) until June 6, 2023, either through the drop box available at the bank premises or by sending a scanned copy of said Form and valid ID to email address, [email protected].

MAUF will be made available at the bank premises or may be downloaded from the PDIC website at

Insurance payments for valid deposits with balances of PHP100,000.00 and below will be made through postal money order and are targeted to be sent via mail starting on June 16, 2023.

For business entities and all other depositors, the filing of claims for insured deposits will begin June 6, 2023.

The PDIC reminded borrowers to continue paying their loan obligations with the closed rural bank and to transact only with designated PDIC representatives.

It will hold a forum on June 14 to discuss procedures for filing deposit insurance claims and settlement of loan obligations for depositors and borrowers of the bank. The time and venue of the forum will be announced later. (PNA)