THE BANGKO SENTRAL ng Pilipinas has ordered the closure of Emerald Rural Bank, Inc.
The central bank’s policy-setting Monetary Board, in Resolution No. 77. A dated Jan. 23, decided to prohibit the bank from doing business in the Philippines, pursuant to Section 30 of Republic Act No. 7653 or the New Central Bank Act, according to a circular letter posted on the regulator’s website.
Section 30 of the New Central Bank Act is focused on proceedings regarding receivership and liquidation.
“The Philippine Deposit Insurance Corp. (PDIC) has been designated as receiver with a directive to proceed with the takeover and liquidation of the aforementioned rural bank,” it added.
In a separate bulletin, the PDIC said it took over the bank and its assets, records and affairs on Jan. 24.
“The PDIC charter provides in Section 13, that a bank placed under liquidation shall in no case be reopened and permitted to resume banking business,” it said.
“Furthermore, Section 12 expressly provides that banks closed by the Monetary Board shall no longer be rehabilitated.”
The powers, functions and duties of directors, officers and stockholders of the bank have also been terminated upon its placement under liquidation, the PDIC said.
“Accordingly, the directors, officers, and stockholders shall be barred from interfering in any way with the assets, records and affairs of the bank,” it added.
“Therefore, anyone in possession of any asset and/or records of the closed Emerald Rural Bank, Inc. is advised not to allow or honor any transaction affecting the same without the consent of the receiver and to immediately turnover the said assets and/or records to the designated deputy receiver.” — Luisa Maria Jacinta C. Jocson
