The Philippine Deposit Insurance Corp. (PDIC) has taken over Cagayan de Oro-based Palm Tree Bank Inc. following a closure order by the Bangko Sentral ng Pilipinas (BSP) following Monetary Board Resolution No. 482A which prohibits the said bank from operating in the country pursuant to Section 30 of Republic Act 7653 or The New Central Bank Act.

In a press release, PDIC stated that Palm Tree Bank, Inc. is a two-unit rural bank with Head Office located at Door 5 Global Agro Bldg., Kolambog, Brgy. Lapasan, Cagayan de Oro City with a lone branch located in Cotabato City.

photo by PDIC

Latest available records showed that as of December 31, 2020, Palm Tree Bank, Inc. has 1,716 deposit accounts with total deposit liabilities of PhP23.2 million, of which 95.8% or PhP22.3 million are insured deposits.

The PDIC has assured depositors that all valid deposits and claims will be paid up to the maximum deposit insurance coverage of PhP500,000.00 per depositor. Meanwhile, individual account holders of valid deposits with balances of PhP100,000.00 and below, and who have no outstanding obligations nor have not acted as co-makers of obligations with Palm Tree Bank, Inc., are not required to file deposit insurance claims.

Borrowers are likewise reminded to continue paying their loan obligations with the closed Palm Tree Bank, Inc. and to transact only with designated PDIC representatives. The procedures for settlement of loan obligations are available in the PDIC website.

For more information on the requirements and procedures for filing deposit insurance claims and settlement of loan obligations, depositors and borrowers of the bank are enjoined to attend the virtual Depositors-Borrowers’ Forum scheduled on 25 May 2021. Details of the Forum will also be announced in the PDIC website and Facebook page.

Read link below for more details.

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