Another rural bank declares holiday
TAGBILARAN CITY, Bohol — A rural bank in Bohol province, in central Philippines, declared a bank holiday Wednesday after heavy withdrawals by depositors following the closure of a rural bank in this city last month.
The depositors were surprised to see the Rural Bank of Maribojoc Inc. branch in Maribojoc town closed on Wednesday morning with a posted notice saying the bank was temporarily closed while awaiting a loan from the central bank and that its depositors should "beware of swindlers."
The rural bank's chairman, Restituto Tan, he declined to comment Wednesday morning but promised to issue a statement. He said he had to meet with the bank's board. Other bank officers could not be reached for comment.
Antonieto Pernia, the chief of staff at the office of the provincial governor, said the rural bank had asked for a loan from the central bank as early as December to cope with massive withdrawals.
Pernia said he introduced Tan to central bank officials who came to Bohol last month to supervise the convergence of local cooperatives in the province. He said it was at that meeting that Tan asked the central bank officials to approve the rural bank's application for cash infusion before its cash reserves became depleted.
The Rural Bank of Maribojoc had been offering depositors annual interest of 20 percent.
Last December 12, the Pilipino Rural Bank Tagbilaran City branch declared a bank holiday. It was one of 12 rural banks affiliated with the Legacy Group.
Hundreds of Pilipino Rural Bank depositors are still waiting for the Philippine Deposit Insurance Corp. to process their claims on their deposits.
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