BSP shuts down South Cotabato rural bank

The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of Rural Bank of Polomolok Inc. based in South Cotabato, bringing to eight the number of problematic banks shuttered this year.

BSP Deputy Governor Chuchi Fonacier said the Monetary Board issued Resolution 985.A last July 14 prohibiting the Rural bank of Polomolok from doing business in the Philippines as mandated under Republic Act 7653 or The Central Bank Act.

Fonacier said state-run Philippine Deposit Insurance Corp. (PDIC) has been designated as receiver and has been directed to proceed with the liquidation of the problematic thrift bank in accordance with RA 3591 or the PDIC Charter.

In a separate bulletin, PDIC took over the closed bank with head office address at National Highway, Barangay Magsaysay, Polomolok, South Cotabato last July 18.

Rural Bank of Polomolok has three branches located in Barangay Poblacion, Alabel in Sarangani; Cagampang St., Barangay Dadiangas South in General Santos City; and the National Highway, Barangay Poblacion, Maasim also in Sarangani.

The PDIC Charter provides that a bank placed under liquidation shall in no case be re-opened and permitted to resume banking business. It also states that banks closed by the Monetary Board shall no longer be rehabilitated.

Upon placement of a bank under liquidation, the powers, functions and duties of the directors, officers and stockholders of the bank are terminated. Accordingly, the directors, officers, and stockholders shall be barred from interfering in any way with the assets, records and affairs of the bank.

“Therefore, anyone in possession of any asset and/or records of the closed Rural Bank of Polomolok is advised not to allow or honor any transaction affecting the same without the consent of the receiver and to immediately turnover the said assets and/or records to the designated deputy receiver,” the PDIC said.

The BSP earlier ordered the closure of Banco Rural De General Tinio in Nueva Ecija, Farmers Savings and Loan Bank Inc. based in Bulacan, Metro-Cebu Public Savings Bank, the Rural Bank of Mahaplag (Leyte) Inc., the Rural Bank of Salcedo (Ilocos Sur) Inc., the Rural Bank of San Lorenzo Ruiz (Siniloan) Inc., and the Rural Bank of San Nicolas (Pangasinan).

The number of problematic banks ordered closed by the central bank almost tripled to 13 last year from five in 2020 as the country has yet to fully recover from the impact of the pandemic.