Two more rural banks add to list of shuttered lenders
THE BANGKO Sentral ng Pilipinas (BSP) shuttered two provincial banks last week, bringing to five the number of small lenders ordered closed since the year opened.
In separate circular letters signed April 20, the Monetary Board shut down the Rural Bank of Iligan City, Inc. and the Rural Bank of Ragay, Inc. in Camarines Sur after they were found unviable to remain in business.
The Philippine Deposit Insurance Corp. (PDIC) said it has taken over the two lenders on Friday, or a day after the central bank announced the respective closures.
According to PDIC data, the Rural Bank of Ragay has one branch in the town of Del Gallego in Camarines Sur, with Emma Louisa C. Aquino as its chairman and president. Total deposits stood at P178.5 million held in 8,062 bank accounts, although insurance coverage only stood at P172.9 million.
On the other hand, the Rural Bank of Iligan City also operates one branch and is led by its chairman Francis C. Adeva and its president Esmeraldo C. Roque, Jr., who owns a 40% stake in the financial firm. The lender holds P27.9 million in total deposits distributed across 394 accounts. Barely half of the deposits or P13.2 million are insured under PDIC.
As the state insurer, the PDIC is tasked to assume all the assets of a closed bank, which it will then dispose in order to settle dues to its depositors. Under the law, all bank accounts are insured up to P500,000 each.
Account owners with deposits worth P100,000 and below may avail of early payment even without filing insurance claims, except for those whose accounts have outstanding obligations with the bank or those owned by businesses.
Rural Bank of Ragay is the second Camarines Sur-based lender to fold this year, following the fate of the Rural Bank of Goa, Inc. which was shuttered in March.
Other banks closed down by the central bank earlier this year are the Countryside Cooperative Rural Bank of Batangas and the Rural Bank of Barotac Viejo, Inc.
In 2016, the BSP shut down 22 rural and thrift lenders which were found to be incapable of sustaining their operations. —