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Business

BSP closes Pangasinan bank

Lawrence Agcaoili - The Philippine Star

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of Kaluyagan Rural Bank Inc. in Pangasinan, bringing to seven the number of problematic banks shuttered this year.

The BSP has issued a resolution prohibiting the Kaluyagan Rural Bank from doing business in the country pursuant to Section 30 of Republic Act 7653 or The New Central Bank Act, as amended.

The regulator also ordered the Philippine Deposit Insurance Corp. (PDIC) to take over the closed bank and act as receiver with a directive to proceed with the takeover and liquidation of the rural bank .

The shuttered bank is located at Mabini street, Barangay Mabini (Poblacion) San Carlos City. It has one branch located at Perez Boulevard, Barangay Herrero in Dagupan City.

PDIC took over the closed bank, its assets, records and affairs last Oct. 29.

“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.

Prior to the closure of the Kaluyagan Rural Bank, the regulator has ordered the closure of the Rural Bank of Santa Fe in Romblon, 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 ordered the closure of 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 launching of the Rural Banking Industry Strengthening Program (RBSP) that 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.

BANGKO SENTRAL NG PILIPINAS

PDIC

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