BSP shuts down 12th bank this year

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) closed down a problematic bank in Quezon City, bringing to 12 the number of banks shuttered this year as the regulator continues to rid the industry of weak players.

The central bank’s Monetary Board issued Resolution 1819, prohibiting San Francisco del Monte Rural Bank Inc. from doing business and placing it under the supervision of the state-run Philippine Deposit Insurance Corp. (PDIC).

San Francisco del Monte Rural Bank is a single-unit rural bank located on Del Monte Avenue in Quezon City.

Latest available records showed the closed bank had 2,043 deposit accounts with total deposit liabilities of P284.03 million. Of the total amount, 99.14 percent or P281.58 million are insured.

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

Aside from the San Francisco del Monte Rural Bank, the BSP has ordered the closure of Pangasinan-based Malasiqui Progressive Savings and Loan Bank, Rural Bank of Luna (Apayao), Rural Bank of Pagbilao, Rural Bank of Sta. Elena (Camarines Norte), Batangas-based Tiaong Rural Bank, Iloilo-based Bangko Buena Consolidated, Batangas-based Women’s Rural Bank, Rural Bank of Initao (Misamis Oriental), Empire Rural Bank in Lipa City, Batangas, Rural Bank of Loreto (Surigao del Norte), and Rural Bank of Maigo (Lanao del Norte).

The number of banks closed down by the regulator so far this year has exceeded last year’s number of seven as it continues to heighten its campaign against weak banks.

BSP Governor Nestor Espenilla Jr. earlier said the regulator would not hesitate to close down banks to protect the public.

“Financial stability is something that we constantly advocate for our economy and to do that we have to implement strong measures. We had imposed a discipline of aligning our standards to global standards and we have also not hesitated to shut down banks that do not do what they are supposed to do in protecting the public,” he said.

Espenilla, who chairs the seven-member Monetary Board, added the BSP continues to weed out weak elements in the banking industry that create vulnerabilities to the Philippine economy.

“You know it is one of the toughest decisions of the BSP whenever we have to close down a bank. But still it is our duty to protect the public from financial institutions that do not protect them,” the BSP chief said.