BSP closes Jalajala Rural Bank

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of another problematic bank, bringing to 21 the number of shuttered banks this year as the regulator continues to weed out the weak players from the industry.

In a resolution, the BSP has ordered the closure of Eastern Rizal (Jalajala) Rural Bank Inc.

The rural bank is a three-unit rural bank with head office located at C. Villaran St., Jalajala, Rizal. Its two branches are located in Cainta, Rizal and Marikina City.

Latest available records showed Eastern Rizal (Jalajala) Rural Bank had 3,216 accounts with total deposit liabilities of P47.8 million. Total insured deposits amounted to P47.4 million involving 99.1 percent of total deposit accounts.

PDIC assured depositors that all valid deposits and claims would be paid up to the maximum deposit insurance coverage of P500,000.

The state-run deposit insurer urged all depositors and borrowers of the bank to attend the depositors-borrowers’ forum on Dec. 14.

BSP Deputy Governor Nestor Espenilla Jr. earlier said the country’s banking system has evolved over the years with the closure of some players as well as the mergers and consolidation of the others.