BSP shuts down rural bank in Pangasinan

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has closed down another problematic rural bank, bringing to five the number of institutions shuttered this year as it continues to weed out weak players in the industry.

The BSP has issued Resolution 694.A prohibiting the Bangko Pangasinan – A Rural Bank Inc. from doing business in the Philippines pursuant to Section 30 of Republic Act 7653 or the New Central Bank Act, as amended.

State-run Philippine Deposit Insurance Corp. (PDIC) took over the closed bank as receiver last June 2 with a directive to proceed with the take over and liquidation of the closed rural bank in accordance with RA 3591 or the PDIC Charter.

Bangko Pangasinan is a five-unit rural bank with head office located in ET Gonzales Bldg., MacArthur Highway, MH Del Pilar St., Mayombo, Dagupan City,

Pangasinan, while its four branches are located in Alaminos City, Burgos, Aguilar, and Bolinao, all in Pangasinan.

Latest available records show that as of end-2021, the closed bank had 3,828 deposit accounts with total deposit liabilities of P273.2 million, of which 91.2 percent or P249.2 million are insured deposits.

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

Individual account holders of valid deposits with balances of P100,000 and below, who have no outstanding obligations or have not acted as co-makers of obligations with Bangko Pangasinan  are not required to file deposit insurance claims.

So far this year, the BSP has ordered the closure of five problematic rural banks. Aside from Bangko Pangasinan, the regulator also shuttered Rural Bank of San Juan (Southern Leyte) Inc. in May, Binangonan Rural Bank Inc. in April, Rural Bank of San Marcelino Inc. in March and Rural Bank of San Agustin (Isabela) Inc. in January.

Last year, the BSP closed down nine problematic banks including the Rural Bank of Galimuyod (Ilocos Sur) Inc., Rural Bank of Polomolok (South Cotabato), Banco Rural De General Tinio in Nueva Ecija, Farmers Savings and Loan Bank based in Bulacan, Metro-Cebu Public Savings Bank, Rural Bank of Mahaplag (Leyte) , Rural Bank of Salcedo (Ilocos Sur), Rural Bank of San Lorenzo Ruiz (Siniloan), and  Rural Bank of San Nicolas (Pangasinan).