TWO MORE RURAL BANKS ORDERED CLOSED BY BSP
Ten banks placed under PDIC receivership so far this year
TWO more rural banks have ordered closed and placed under receivership by the Bangko Sentral ng Pilipinas (BSP), staterun Philippine Deposit Insurance Corp. (PDIC) announced.
Pangasinan-based Malasiqui Progressive Savings and Loan Bank, Inc. and Apayao- based Rural Bank of Luna were prohibited from doing business and their assets and affairs placed under PDIC control.
The single- unit Malasiqui Progressive Savings and Loan Bank, headquartered at Quezon Blvd. Extension, Brgy. Poblacion, Malasiqui, Pangasinan, had 1,064 accounts with total deposit liabilities of P73.5 million as of end- June.
Total insured deposits amounted to P67.5 million or 91.8 percent of total deposits.
The five- unit Rural Bank of Luna, meanwhile, is headquartered in San Isidro Norte, Luna, Apayao, Cagayan Valley. Its four branches are in Abulug, Alcala, Allacapan and Buguey, all in Cagayan, Cagayan Valley.
As of June 30, the rural bank had 10,090 accounts with total deposit liabilities of P213.13 million. Total insured deposits amounted to P185.06 million or 86.8 percent of total deposits.
Depositors of closed banks under PDIC receivership are entitled to be paid up to the maximum insurance coverage of P500,000.
According to the PDIC, depositors with valid accounts of P100,000 and below are eligible for early payment and need not file deposit insurance claims, except when they have outstanding obligations with the closed banks or acted as co- makers of obligations.
“These individual depositors must ensure that they have complete and updated addresses with the bank,” PDIC said.
Depositors of Malasiqui Progressive Savings and Loan Bank can update their addresses until August 23, 2018, while those of the Rural Bank of Luna can do so until September 4, 2018 using forms to be distributed by PDIC representatives at bank premises.
The Malasiqui Progressive Savings and Loan Bank, Inc. and the Rural Bank of Luna are the ninth and 10th banks to be placed under PDIC receivership this year.
The Monetary Board closed seven banks in 2017 and 22 banks in 2016, placing them all under PDIC receivership.
Closing financially troubled banks is one of the duties of the Bangko Sentral to protect the public interest, its chief has stressed.
“We had imposed a discipline of aligning our standards to global standards. We have also not hesitated to shut down banks that do not do what they are supposed to do in protecting the public,” central bank Governor Nestor Espenilla Jr. said in a recent forum.
“You know it is one of the toughest decision of the BSP whenever we have to close down a bank. But still it is our duty to protect the public from not protect them,” he added.
Espenilla highlighted the importance of financial stability for effective monetary policy, pointing out that a frag the transmission of monetary policy to the real economy.