BSP, AMA Bank reach compromise

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January 6, 2026 | 12:00am

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) said it has reached a compromise agreement with AMA Rural Bank of Mandaluyong Inc., ending years of legal disputes stemming from the bank’s controversial closure in 2019 and paving the way for the settlement of depositor claims.

In a statement, the BSP said they “have mutually and amicably resolved all of their disputes fully and comprehensively” and agreed to enter into a compromise agreement “for the protection of the interests of the depositors and bank clients” of the rural lender.

Under the agreement, depositors, creditors and other bank clients were advised to submit their claims for payment directly to AMA Bank and to address all related inquiries to the bank.

The BSP added that, in accordance with the compromise agreement, AMA Bank would remain under the central bank’s regulatory jurisdiction to ensure the proper implementation of the settlement.

The latest development follows more than five years of legal battles and regulatory deadlock after the BSP’s Monetary Board ordered the closure of AMA Bank in November 2019 due to alleged liquidity issues and placed the lender under liquidation by the Philippine Deposit Insurance Corp. (PDIC).

At the time of its closure, AMA Bank, owned by businessman Amable Aguiluz, held about P1.4 billion in deposits across 8,434 accounts and operated several branches nationwide.

However, the closure was later overturned by the Court of Appeals, which in a September 2020 decision ruled that the BSP acted without valid grounds. The CA ordered the reopening of the bank and the return of its seized assets.

The appellate court’s ruling was eventually affirmed by the Supreme Court, which in March 2023 denied the petitions of the BSP and PDIC and ordered compliance with the CA decision.

In May 2024, the Supreme Court en banc denied with finality the motions for reconsideration filed by the BSP and PDIC, making the ruling final and executory.

Despite the final court ruling, the reopening of AMA Bank and the release of its assets were repeatedly delayed, prompting frustration among depositors, many of whom staged visits to the BSP and appealed for immediate action.

In a previous statement, the PDIC said it had already completed the turnover of AMA Bank’s documents, records, branches and non-cash assets between June and July 2023, in the presence of a court-designated sheriff.

As of March 2025, the PDIC confirmed the transfer of P259.43 million in cash assets to AMA Bank, in compliance with the court’s directive. The PDIC has repeatedly advised depositors, creditors and borrowers to await official announcements and to coordinate directly with the bank.

The BSP’s latest statement marks its first formal acknowledgment of a negotiated settlement with AMA Bank since the High Court’s decision became final, signaling a shift toward resolving the long-running dispute that has kept depositors in limbo since 2019.