BSP, AMA Bank reach compromise to resolve closure dispute
THE BANGKO SENTRAL ng Pilipinas (BSP) on Monday said it has entered an agreement with AMA Rural Bank of Mandaluyong, Inc. (AMA Bank) to resolve the issues surrounding the latter’s closure.
“For the protection of the interests of the depositors and bank clients of AMA Rural Bank of Mandaluyong, Inc., the Bangko Sentral ng Pilipinas and AMA Bank have mutually and amicably resolved all of their disputes fully and comprehensively and have agreed to enter into an agreement,” the central bank said in a statement on Monday.
It advised AMA Bank depositors, creditors and other clients to submit their claims for payment and direct all their concerns to the bank.
“In accordance with the Compromise Agreement between BSP and AMA Bank, AMA Bank shall continue to be under the regulatory jurisdiction of the BSP for the purpose of ensuring its implementation.”
In November 2019, the central bank issued a circular ordering the closure of AMA Bank amid alleged liquidity problems, prompting the Philippine Deposit Insurance Corp. (PDIC) to take over and liquidate the bank’s assets.
However, AMA Bank appealed the order before the Supreme Court and was later permitted to reopen after the Court of Appeals found insufficient grounds to warrant the closure order. The High Court then upheld the appellate court’s ruling, instructing the BSP and PDIC to restore the bank’s full operational status and returned the seized assets.
AMA Bank’s head office is in Mandaluyong City. It has 12 branches located in Pasig City; Baguio City; San Fernando City, La Union; Tuguegarao City, Cagayan; Baliuag, Bulacan; San Fernando, Pampanga; Bacoor, Cavite; Cainta and Morong in Rizal; Calamba City and San Pablo City in Laguna; and Palo, Leyte. — Katherine K. Chan
You May Also Like
YouTube Cryptocurrency Viewing Hits Lowest Level in 5 Years! What Does It Mean? Here Are the Details
Hoskinson to Attend Senate Roundtable on Crypto Regulation
