BSP padlocks Cebu-based rural bank

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of another rural bank as it continues to weed out weak players in the banking industry to protect the interest of depositors.

BSP Deputy Governor Nestor Espenilla Jr. said the central bank’s Monetary Board has issued Resolution No. 121 prohibiting Lapu-Lapu Rural Bank Inc. from doing business in the Philippines.

The BSP also placed all the assets and affairs of the rural bank under receivership of the state-run Philippine Deposit Insurance Corp. (PDIC) pursuant to Section 30 of Republic Act 7653 or the New Central Bank Act.

Lapu-Lapu Rural Bank is located in Santa Catalina St., Poblacion II, Carcar City in Cebu.

This is the second rural bank ordered closed by the BSP this year.

Last year, a total of 14 rural banks were ordered closed by the BSP’s Monetary Board and were placed under the supervision of the PDIC.

These are Community Bank (Rural Bank of San Alfonso) Inc., Community Rural Bank of Magsaysay (Davao del Sur) Inc., Rural Bank of Labrador (Pangasinan) Inc., Rural Bank of Magsingal (Ilocos Sur) Inc., Rural Bank of Pres. Roxas (North Cotabato) Inc., Rural Bank of Sta. Magdalena (Sorsogon) Inc., Siargao Bank (A Rural Bank) Inc., Surigaonon Rural Banking Corp., Farmer’s Rural Bank Inc. in Batangas, Xavier-Punla Rural Bank Inc., Rural Bank of Buguias, Rural Bank of Calasiao, the Rural Bank of Caba (La Union) Inc. and Peñafrancia Rural Bank of Calabanga (Camarines Sur) Inc.