The Philippine Star

BSP shuts down Siqui­jor bank

- By LAWRENCE AGCAOILI Finance · Banking · Insurance · Social Security · Business · Society · Bangko Sentral ng Pilipinas · Guihulngan · Malabang · Lanao del Sur

The Bangko Sen­tral ng Pilip­inas (BSP) has shut down an­other ail­ing ru­ral bank, bring­ing to eight the num­ber of closed banks this year as the reg­u­la­tor con­tin­ues to weed out weak play­ers.

The cen­tral bank is­sued MB Res­o­lu­tion 1570.A pro­hibit­ing Ru­ral Bank of Larena (Siqui­jor) Inc. to op­er­ate.

The reg­u­la­tor also or­dered state-run Philip­pine De­posit In­surance Corp. (PDIC) to act as re­ceiver to pro­ceed with the takeover and liq­ui­da­tion of the ru­ral bank.

Ru­ral Bank of Larena is a sin­gle-unit ru­ral bank lo­cated on Boni­fa­cio St., Brgy. North Pobla­cion, Larena, Siqui­jor.

Lat­est avail­able records showed Ru­ral Bank of Larena has 482 de­posit ac­counts with to­tal de­posit li­a­bil­i­ties of P12.9 mil­lion, of which 96.2 per­cent or P12.4 mil­lion are in­sured de­posits.

The state-run de­posit in­surer as­sured de­pos­i­tors that all valid de­posits and claims shall be paid up to the max­i­mum de­posit in­surance cover­age of P500,000.

This is the eighth bank or­dered closed by the BSP. Oth­ers or­dered closed by the reg­u­la­tor this year in­clude East Coast Ru­ral Bank of Hagonoy, Ru­ral Bank of Gui­hul­ngan (Ne­gros Ori­en­tal), Ru­ral Bank of Basey (Samar), Valiant Bank, The Palawan Bank (Palawan Devel­op­ment Bank), Ru­ral Bank of Mabitac (La­guna) and Bagong Bangko Ru­ral ng Mal­a­bang (Lanao del Sur).

Un­der Sec­tion 13 of Repub­lic Act 3591, as amended, PDIC can ac­cept let­ters of in­tent from in­ter­ested banks and non-bank in­sti­tu­tions for pos­si­ble pur­chase of as­sets and as­sump­tion of li­a­bil­i­ties as a mode of liq­ui­dat­ing the closed bank within 60 days from the takeover.

The BSP and PDIC have been push­ing merg­ers and con­sol­i­da­tion in the in­dus­try through the grant of in­cen­tives un­der the Con­sol­i­da­tion Pro­gram for Ru­ral Banks to fur­ther strengthen the coun­try’s bank­ing in­dus­try.

Ru­ral banks play an im­por­tant role in pro­vid­ing es­sen­tial fi­nan­cial ser­vices to the com­mu­nity, par­tic­u­larly in their spe­cial­ized or niche mar­kets, and in pro­mot­ing fi­nan­cial in­clu­sion and fi­nan­cial sta­bil­ity.

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