BSP padlocks 7th problematic bank

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of the Rural Bank of Santa Fe Inc. in Romblon, bringing to seven the number of banks shut down this year.

BSP Deputy Governor Chuchi Fonacier said the Monetary Board issued Resolution 1415.A last Oct. 21 prohibiting the Rural Bank of Santa Fe from doing business pursuant to Section 30 of Republic Act 7653 or The New Central Bank Act.

Fonacier said the Philippine Deposit Insurance Corp. (PDIC) has been directed to take over the closed bank and act as receiver in the takeover and liquidation of the rural bank.

The shuttered bank is located at 127 P. Contes St., Barangay Poblacion, Santa Fe in Romblon.

In a separate bulletin, PDIC said it took over the closed bank, its assets, records and affairs last Oct. 26.

“The PDIC Charter provides in Section 13, that a bank placed under liquidation shall in no case be re-opened and permitted to resume banking business. Furthermore, Section 12 expressly provides that banks closed by the Monetary Board shall no longer be rehabilitated,” the state-run deposit insurer said.

The BSP earlier ordered the closure of Lucena-based Grand Agri Rural Bank Inc., Rural Bank of Datu Paglas based in Maguindanao, Rural Bank of Caloocan, Rural Bank of Alimodian (Iloilo) Inc., Palm Tree Bank Inc. based in Cagayan de Oro and Occidental Mindoro Rural Bank Inc.

Last year, the regulator shut down Providence Rural Bank, Rural Bank of Tibiao (Antique), De La O Rural Bank, San Fernando Rural Bank and Cooperative Bank of Aurora.

PDIC paid P124.11 million worth of insurance claims for 7,072 valid deposit accounts maintained in five banks, or 76 percent of the estimated total deposit accounts of 9,305.

BSP Governor Benjamin Diokno earlier announced the launch of the Rural Banking Industry Strengthening Program (RBSP) which aims to strengthen the industry in recognition of its critical role in providing financial services in rural and agricultural communities.

“The program is part of the BSP’s broader and continuing efforts to boost the resilience of the rural banking industry, which is a key agent of countryside development as it provides financial services to rural communities, including micro, small and medium enterprises,” Diokno said.