The Monetary Board (MB), the policy making body of the Bangko Sentral ng Pilipinas (BSP), prohibited AMA Rural Bank of Mandaluyong, Inc. and Maximum Savings Bank, Inc.from doing business in the Philippines on 07 November 2019 pursuant to Section 30 of Republic Act No. 7653 (The New Central Bank Act), as amended.
The closures of AMA Rural Bank of Mandaluyong, Inc. and Maximum Savings Bank, Inc. are not expected to adversely affect the Philippine banking system considering their relatively small size. As of 30 June 2019, their total assets are equivalent to only0.02 percent and 0.002 percent, respectively, of the total assets of the banking system.
AMA Rural Bank of Mandaluyong, Inc. has a network of ten (10) branches with its main branch located in Mandaluyong City and the other branches located in Pasig City; Cainta and Morong, Rizal; Bacoor, Cavite; San Pablo and Calamba Cities in Laguna; Baliuag, Bulacan; San Fernando, Pampanga and Baguio City. AMA Rural Bank of Mandaluyong, Inc. has related companies but these are not under the supervision of the BSP. The BSP, only took action on the Bank pursuant to its mandate under Section 30 of its Charter.
Meanwhile, Maximum Savings Bank, Inc. has a network of 3 branches with its main branch located in Batangas City and the other branches located in Sabang and Calapan City, both in Oriental Mindoro.
The overall Philippine banking system remains sound and stable with ample liquidity and high level of capitalization as BSP continues to promote good governance among its supervised institutions to ensure the soundness of the banking system and to protect the interest of the banking public.
The Philippine Deposit Insurance Corporation (PDIC) stands ready to service valid deposit claims from depositors of AMA Rural Bank of Mandaluyong, Inc. and Maximum Savings Bank, Inc. and complete the processing of claims in accordance with the guidelines of the PDIC.
Source: Bangko Sentral ng Pilipinas (BSP)