17th rural bank ordered close
The Bangko Sentral ng Pilipinas (BSP) has ordered the closure of another problematic bank, bringing to 17 the number of financial institutions shuttered by the regulator as part of efforts to weed out weak players in the industry.
Under Resolution No. 1956.A issued last Thursday, the BSP’s Monetary Board prohibited the Community Rural Bank of Dingras (Ilocos Norte) Inc. from doing business in the Philippines.
The closed rural bank was immediately placed under the supervision of the state- run Philippine Deposit Insurance Corp. (PDIC) last Friday.
It has three branches with its head office located at Medina St. corner Puruganan St., Brgy. Madamba ( Pob.), Dingras, Ilocos Norte. Its two branches are located in Batac and Paoay.
Based on the bank information sheet filed with the PDIC, the bank is owned by Teresita Villa with 35.98 percent, Caridad Villa with 18.28 percent, Jose Salasac with 3.61 percent, Rolando Unciano with 2.69 percent, Marino Unciano with 2.41 percent, Evelyn Unciano with 2.24 percent, Trinidad Nagum with 2.12 percent, and Rene Hermano with 2.09 percent.
Latest available records showed the closed bank had 1,859 accounts with total deposit liabilities of P75.6 million. Total insured deposits amounted to P74.5 million involving 98.5 percent of total deposit accounts.
PDIC assured depositors that all valid deposits and claims would be paid up to the maximum deposit insurance coverage of P500,000. The schedule of claims settlement operations would be announced as soon as finalized.
It also reminded borrowers to continue paying their loan obligations with the closed Community Rural Bank of Dingras and to transact only with designated PDIC representatives at the bank premises.
Meanwhile, PDIC enjoined all depositors and borrowers to attend the Depositors-Borrowers’ Forum on Nov. 17.
The BSP had previously ordered the closure of the Rural Bank of Luna ( Isabela) Inc.; Rural Bank of Alabat (Quezon) Inc.; Rural Bank of Cabadbaran (Agusan) Inc.; Rural Bank of Siaton (Siaton, Negros Oriental) Inc.; New Rural Bank Of Binalbagan (Negros Occidental) Inc.; Comsavings Bank with trade name GSIS Family Bank; Rural Bank of Amadeo (Cavite) Inc.; and Surigao City Evergreen Rural Bank Inc.
Other closed banks include Rural Bank of Malinao (Aklan) Inc.; Koronadal Rural Bank Inc.; Rural Bank of Panay Inc.; Rural Bank of Basay (Negros Oriental) Inc.; Rural Bank of Bayawan ( Negros Oriental) Inc.; Lapu-Lapu Rural Bank Inc.; and Rural Bank of Villaviciosa (Abra) Inc.; and the Rural Bank of Claveria (Cagayan) Inc.
Last year, the BSP shut down 14 problematic banks.
BSP Deputy Governor Nestor Espenilla Jr. had said the country’s banking system has evolved over the years with the closure of some players as well as the mergers and consolidation of the others.
“The system is evolving so what we are seeing are the weaker players which have decided to get out of the system or combine with the others. We keep saying compared with 10 years ago the banking system today, those that remain will continue to service the market is more stronger than the banking system 10 years ago,” he said.
The BSP is looking at consolidating the Strengthening Program for Rural Banks ( SPRB) Plus and the Consolidation Program for Rural Banks (CPRB) to entice mergers among smaller banks with the entry of stronger foreign banks into the country.