Talisay, Cebu RB ordered close

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

The Monetary Board issued Resolution 1223.A on Sept. 21 prohibiting the Rural Bank of Talisay (Cebu) 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 a receiver on Sept. 22 with a directive to proceed with the takeover and liquidation of the closed rural bank in accordance with RA 3591 or the PDIC Charter.

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 seven problematic rural banks. Aside from Rural Bank of Talisay, the regulator also shuttered the United Consumers Rural Bank Inc. in July, Bangko Pangasinan – A Rural Bank Inc. in June, 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.

In 2022, 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).

To strengthen the sector, the central bank has rolled out the Rural Bank Strengthening Program to enhance the operations, capacity, and competitiveness of the industry.

The BSP earlier announced the completion of the consolidation of Bayanihan Bank Inc. and Rural Bank of Pozorrubio Inc. as well as the completion of the merge between Bangko Kabuhayan Inc., First Agro-Industrial Rural Bank Inc. and Progressive Bank Inc.