BSP and AMA Bank Reach Compromise to Resolve Years-Long Dispute

The Bangko Sentral ng Pilipinas (BSP) and AMA Rural Bank of Mandaluyong Inc. have reached a compromise agreement, ending a legal battle that began with the bank’s closure in 2019.

The central bank stated that the two parties have “mutually and amicably resolved all of their disputes fully and comprehensively”. This move aims to protect the interests of depositors and clients.

Under the agreement, depositors, creditors, and other clients are advised to submit claims for payment. They should also direct all related inquiries to AMA Bank.

The BSP confirmed that AMA Bank will remain under its regulatory jurisdiction to ensure the proper implementation of the settlement.

The dispute stems from the Monetary Board’s November 2019 order to close the bank and place it under Philippine Deposit Insurance Corp. (PDIC) receivership. At the time, regulators cited irregular loans and questionable transactions as the basis for the move.

However, the Court of Appeals later overturned this decision. This ruling was eventually affirmed by the Supreme Court in March 2023, which declared the closure “unwarranted” and not based on grounds provided by law.

Following the final court ruling in May 2024, the PDIC began the process of turning over assets. This included a transfer of PHP 259.43 million in cash completed in March 2025.

The compromise marks a significant shift towards resolving the deadlock. This situation has long affected holders of deposit accounts, which totalled approximately PHP 1.4 billion at the time of closure.

Featured image by armmypicca via Freepik.

The post BSP and AMA Bank Reach Compromise to Resolve Years-Long Dispute appeared first on Fintech News Philippines.