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MB closes down GSIS Family Bank; PDIC takes over

THE Monetary Board, the policy-making body of Bangko Sentral ng Pilipinas, placed the 22-unit GSIS Family Bank (A Thrift Bank) under the custody of Philippine Deposit Insurance Corp. due to unsound financial condition, the ninth bank closed this year.

The board closed the bank on May 13, 2016. PDIC as receiver took over the bank on the same day.

GSIS Family Bank is a 22-unit thrift bank with head office at the second floor of AIC Grande Tower, Garnet Road, Ortigas Center, Pasig City. The bank has seven branches in the National Capital Region, one in Bulacan, 11 in Cavite, and two in Laguna.

The Government Service Insurance System controls 99.6 percent of GSIS Family Bank. The bank’s president is Emmanuel Benitez while the chairman is Geraldine Marie Berberabe-Martinez.

Latest available records show that the bank as of March 31, 2016 had 14,507 accounts with total deposit liabilities of P974.81 million. Total insured deposits amounted to P786.39 million, or 80.67 percent of total deposits.

PDIC said all bank records would be gathered, verified and validated. The state deposit insurer assured depositors all valid deposits would be paid up to the maximum deposit insurance coverage of P500,000.

Prior to closing down GSIS Family Bank, Bangko Sentral shut down eight rural banks since January this year, also to unsound financial condition.

These were Surigao-based Surigao City Evergreen Rural Bank Inc., Rural Bank of Malinao (Aklan) Inc., Rural Bank of Panay Inc., Koronadal Rural Bank Inc.,  Negros Oriental-based Rural Bank of Basay, Rural Bank of Villaviciosa (Abra) Inc., Cebu-based Lapu-Lapu Rural Bank Inc. and Rural Bank of Bayawan, also in Negros Oriental.

The Monetqry Board in 2015 closed 14 rural banks, matching the same number of banks closed in 2014. Financially-ailing rural banks are normally placed under the custody of state-run Philippine Deposit Insurance Corp.

Topics: Monetary Board , Bangko Sentral ng Pilipinas , GSIS Family Bank , Philippine Deposit Insurance Corp. , PDIC
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