BSP shuts down Rural Bank of Pagbilao

MANILA, Philippines — With still four months left, the Bangko Sentral ng Pilipinas (BSP) has already exceeded the number of problematic banks ordered closed last year after it shuttered another bank in Quezon province.

In a resolution, the BSP prohibited the Rural Bank of Pagbilao Inc. from doing business in the country and placed it under the supervision of the state-run Philippine Deposit Insurance Corp. (PDIC).

The problematic bank is a three-unit rural bank with head office located along C.M. Recto Ave., Mapagong, Pagbilao, Quezon. It has branches in Barangay Ibabang Dupay, Lucena City and Barangay Sta. Catalina, Pagbilao.

Latest available records showed the closed rural bank had 3,324 deposit accounts with total deposit liabilities of P110.05 million. Total insured deposits amounted to P95.82 million equivalent to 87.1 percent of total deposits.

The BSP has so far ordered the closure of eight problematic banks this year, more than last year’s seven.

Aside from the Rural Bank of Pagbilao, other banks ordered closed by the BSP are the Rural Bank of Sta. Elena (Camarines Norte), Batangas-based Tiaong Rural Bank, Iloilo-based Bangko Buena Consolidated Inc., Batangas-based Women’s Rural Bank Inc., Rural Bank of Initao (Misamis Oriental) Inc., Empire Rural Bank Inc. in Lipa City, Batangas as well as the Rural Bank of Loreto (Surigao del Norte) Inc.

The government continues to provide incentives under the Consolidation Program for Rural Banks to encourage mergers and consolidations among small banks particularly rural banks to further strengthen and enhance the viability of the banking system.