BSP shuts down 21st bank for year
The BSP’s Monetary Board issued Resolution 2133.A last Dec.1 prohibiting Xavier-Tibod Bank, Inc. (A Microfinance Rural Bank) in Misamis Oriental from doing business in the Philippines and placing it under the supervision of the Philippine Deposit Insurance Corp. (PDIC).
MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has padlocked another problematic bank, bringing to 21 the number of shuttered lenders this year as part of efforts to protect the depositing public from weak players.
The BSP’s Monetary Board issued Resolution 2133.A last Dec.1 prohibiting Xavier-Tibod Bank, Inc. (A Microfinance Rural Bank) in Misamis Oriental from doing business in the Philippines and placing it under the supervision of the Philippine Deposit Insurance Corp. (PDIC)
As a result, a total of 918 accounts containing deposits worth P7.9 million as of end-September were frozen under PDIC supervision.
Of the total, insured deposits amounted to P7.7 million, accounting for 97.8 percent of the entire deposit accounts. PDIC assured depositors with valid claims up to the maximum insurance coverage of P500,000 will be paid.
It is scheduled to hold a Depositors-Borrowers’ Forum on Dec. 14.
The number of banks, mostly based on the countryside, closed down this year had already surpassed last year’s 14, BSP data showed.
Before Xavier-Tibod Bank, the central also placed under receivership the Rural Bank of Magallon (Moises Padilla, Negros Occidental) Inc.; Rural Bank of Salinas Inc., Community Rural Bank of Dingras (Ilocos Norte) Inc.; Rural Bank of Luna (Isabela) Inc.; Rural Bank of Alabat (Quezon) Inc.; Rural Bank of Cabadbaran (Agusan) Inc.; Rural Bank of Siaton (Siaton, Negros Oriental) Inc.; New Rural Bank Of Binalbagan (Negros Occidental) Inc.; and Comsavings Bank with trade name GSIS Family Bank.
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