THE Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) ordered the closure of Providence Rural Bank, Inc., which is based in Cagayan Province, and directed the Philippine Deposit Insurance Corp. (PDIC) to take over the institution.

In a statement Friday, PDIC said MB Resolution No. 291.B dated Feb. 27, bars Providence Rural Bank from operating further.

PDIC said the resolution also ordered the insurer to take over and proceed with the liquidation of the rural bank starting Friday, Feb. 28.

According to BSP data, the rural bank had 2,431 deposit accounts at the end of last year, with P33.4 million worth of deposits. Some 92.99% or P31.06 million are insured.

“PDIC assured depositors that all valid deposits and claims shall be paid up to the maximum deposit insurance coverage of P500,000.00,” it said.

Providence Rural Bank. is a single-branch bank located in Camalaniugan, Cagayan. — Beatrice M. Laforga