BSP shuts down 12th bank this year

The Philippine Star - - BUSINESS - By LAWRENCE AG­CAOILI

The Bangko Sen­tral ng Pilip­inas (BSP) closed down a prob­lem­atic bank in Que­zon City, bring­ing to 12 the num­ber of banks shut­tered this year as the reg­u­la­tor con­tin­ues to rid the in­dus­try of weak play­ers.

The cen­tral bank’s Mon­e­tary Board is­sued Res­o­lu­tion 1819, pro­hibit­ing San Fran­cisco del Monte Ru­ral Bank Inc. from do­ing busi­ness and plac­ing it un­der the su­per­vi­sion of the state-run Philip­pine De­posit In­sur­ance Corp. (PDIC).

San Fran­cisco del Monte Ru­ral Bank is a sin­gle-unit ru­ral bank lo­cated on Del Monte Av­enue in Que­zon City.

Lat­est avail­able records showed the closed bank had 2,043 de­posit ac­counts with to­tal de­posit li­a­bil­i­ties of P284.03 mil­lion. Of the to­tal amount, 99.14 per­cent or P281.58 mil­lion are in­sured.

PDIC as­sured de­pos­i­tors that all valid de­posits and claims shall be paid up to the max­i­mum de­posit in­sur­ance cov­er­age of P500,000.

Aside from the San Fran­cisco del Monte Ru­ral Bank, the BSP has or­dered the clo­sure of Pan­gasi­nan-based Malasiqui Pro­gres­sive Sav­ings and Loan Bank, Ru­ral Bank of Luna (Apayao), Ru­ral Bank of Pag­bi­lao, Ru­ral Bank of Sta. Elena (Ca­marines Norte), Batan­gas­based Tiaong Ru­ral Bank, Iloilo-based Bangko Buena Con­sol­i­dated, Batan­gas-based Women’s Ru­ral Bank, Ru­ral Bank of Ini­tao (Misamis Ori­en­tal), Em­pire Ru­ral Bank in Lipa City, Batan­gas, Ru­ral Bank of Loreto (Suri­gao del Norte), and Ru­ral Bank of Maigo (Lanao del Norte).

The num­ber of banks closed down by the reg­u­la­tor so far this year has ex­ceeded last year’s num­ber of seven as it con­tin­ues to heighten its cam­paign against weak banks.

BSP Gover­nor Nestor Espe­nilla Jr. ear­lier said the reg­u­la­tor would not hes­i­tate to close down banks to pro­tect the pub­lic.

“Fi­nan­cial sta­bil­ity is some­thing that we con­stantly ad­vo­cate for our econ­omy and to do that we have to im­ple­ment strong mea­sures. We had im­posed a dis­ci­pline of align­ing our stan­dards to global stan­dards and we have also not hes­i­tated to shut down banks that do not do what they are sup­posed to do in pro­tect­ing the pub­lic,” he said.

Espe­nilla, who chairs the seven-mem­ber Mon­e­tary Board, added the BSP con­tin­ues to weed out weak el­e­ments in the bank­ing in­dus­try that cre­ate vul­ner­a­bil­i­ties to the Philip­pine econ­omy.

“You know it is one of the tough­est de­ci­sions of the BSP when­ever we have to close down a bank. But still it is our duty to pro­tect the pub­lic from fi­nan­cial in­sti­tu­tions that do not pro­tect them,” the BSP chief said.

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