BSP orders closure of Rural Bank of Mabitac

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of another problematic bank, bringing to two the number of banks shuttered by the regulator this year.

BSP Deputy Governor Chuchi Fonacier issued a circular announcing the closure of Rural Bank of Mabitac (Laguna) Inc.

Fonacier said state-run Philippine Deposit Insurance Corp. (PDIC) has been designated as receiver with a directive to proceed with the takeover and liquidation of the aforementioned rural bank in accordance with Section 12 (a) of RA 3591 or the PDIC Charter.

Rural Bank of Mabitac is a 17-unit rural bank with head office located at 17 J. Rizal St., Brgy. Sinagtala (Pob.), Mabitac, Laguna.

It has two branches located in Candelaria and Infanta, Quezon; six extension offices in Laguna (Cabuyao, Calamba, Los Baños, Paete, Siniloan and Sta. Maria); five micro banking offices in Laguna (Cabuyao, Los Baños, Paete), Batangas (Tanauan) and Rizal (Tanay); and three other banking offices located in Nagcarlan, Sta. Cruz and Sta. Rosa, all in Laguna.

Latest available records showed the rural bank had 45,807 deposit accounts with total deposit liabilities of P367.1 million. Total insured deposits amounted to P288.3 million, equivalent to 78.52 percent of total deposits.

PDIC assured depositors that all valid deposits and claims shall be paid up to the maximum deposit insurance coverage of P500,000. Individual depositors with valid deposit accounts with balances of P100,000 and below shall be eligible for early payment and need not file deposit insurance claims, provided they have no outstanding obligations.

Early this month, BSP closed down Bagong Bangko Rural ng Malabang (Lanao del Sur) Inc. The problematic bank is a single-unit rural bank located at 593 Bayan St., Brgy. China Town (Pob.), Malabang, Lanao del Sur.

Last year, the regulator closed down 12 problematic banks as part of its efforts to rid the industry of weak players.