MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of Opportunity Kauswagan Bank Inc. (A Microfinance Rural Bank) in Iloilo City, bringing to 13 the number of problematic banks shuttered this year, as the regulator continues to weed out weak players in the banking sector.
BSP Deputy Governor Chuchi Fonacier said the Monetary Board issued Resolution 1635.8 last Dec. 2 prohibiting the Opportunty Kauswagan Bank operating under the business name OK Bank from doing business in the country pursuant to Section 30 of Republic Act 7653 or The New Central Bank Act, as amended.
Fonacier said the regulator has also directed 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 in accordance with Section 12 (a) of RA 3591 or the PDIC Charter, as amended.
Based on the website of the Microfinance Council of the Philippines Inc., OK Bank is the leading microfinance bank in the Philippines, empowering the poor through client-focused banking and allied services and catering to half a million clients by 2014.
The Christ-centered microfinance bank was created from the 2008 merger of Opportunity Microfinance Bank Inc. and Kauswagan Bank Inc. (A Microfinance-Oriented Thrift Bank), and formally started its operations in 2009.
With its head office in Iloilo City, OK Bank has 13 branches operating in Luzon and the Visayas.
The BSP and PDIC together with other financial regulators including the Securities and Exchange Commission (SEC), Philippine Competition Commission (PCC), and the Cooperative Development Authority (CDA) signed an agreement streamline the merger, consolidation, and acquisition process among banks.
The agreement aims to streamline processes, reduce processing time, and facilitate prompt action of applications for mergers, consolidations, and acquisitions.
The regulators agreed on a harmonized list of requirements for merger, consolidation, and acquisition proposals of banks, effectively cutting by half the number of documentary requirements to 30 from 58.
The synchronized timelines and the elimination of duplicate functions among the concerned agencies would significantly reduce the total processing time to only 55 from an average of about 160 business day