BSP shuts down Isabela Rural Bank

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of another problematic rural bank, bringing to six the number of institutions shut down this year.

In a circular letter, the BSP has prohibited United Consumers Rural Bank Inc. from doing business in the Philippines pursuant to the New Central Bank Act.

State-run Philippine Deposit Insurance Corp. (PDIC) took over the closed bank as receiver last July 20 with a directive to proceed with the take over and liquidation of the closed rural bank in accordance with the PDIC Charter.

United Consumers Rural Bank Inc. is a single-unit bank located in the Public Market Bldg., Sta. Rosa, Aurora in Isabela.

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 the bank are not required to file deposit insurance claims.

So far this year, the BSP has ordered the closure of six problematic rural banks.

Aside from the United Consumers Rural Bank Inc., BSP has shuttered Bangko Pangasinan, Rural Bank of San Juan (Southern Leyte) Inc., Binangonan Rural Bank Inc., Rural Bank of San Marcelino Inc., and Rural Bank of San Agustin (Isabela) Inc.