Monetary Board issues prohibition on AMA Rural Bank of Mandaluyong, Maximum Savings Bank, Inc. from doing business

November 10, 2019

The Monetary Board, 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 on Thursday.

''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,'' the BSP said in a statement on Saturday  

As of  June 30, their total assets are equivalent to 0.02 percent and 0.002 percent, respectively, of the total assets of the banking system. 

 AMA Rural Bank of Mandaluyong, Inc. has ten branches with its main branch located in Mandaluyong City and the other branches 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. 

 Maximum Savings Bank, Inc. has a network of three 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 BSP said.

 The Philippine Deposit Insurance Corporation (PDIC) is ready to service valid deposit claims from depositors of AMA Rural Bank of Mandaluyong, Inc. and Maximum Savings Bank, Inc. and complete processing of claims in accordance with the guidelines of the PDIC. DMS