THE POLICY-SETTING Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has closed another rural bank, bringing the number of institutions it has shut down this year to five.

The MB has ordered the closure of Bangko Pangasinan – A Rural Bank, Inc. in its Resolution No. 694.A, according to a bulletin posted on the website of the Philippine Deposit Insurance Corp. (PDIC).

The lender was prohibited from doing business in the country on June 1, pursuant to Section 30 of the amended Republic Act. No. 7653 or the New Central Bank Act.

The same resolution directed the PDIC to proceed with the takeover and liquidation in accordance with the PDIC Charter.

Its charter provides that a bank placed under liquidation is no longer permitted to resume banking business and will not be rehabilitated.

With its main branch located in Dagupan City, the rural bank has a total of four branches in Pangasinan, Alaminos City, and in the municipalities of Burgos, Aguilar, and Bolinao.

“The PDIC took over the bank and all its branches, assets, records and affairs on June 2, 2023,” the PDIC said.

Upon placement of a bank under liquidation, the powers, functions and duties of the directors, officers and stockholders of the bank are terminated.

The directors, officers, and stockholders will also be prohibited 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 Bangko Pangasinan – A Rural Bank, Inc. 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.

Bangko Pangasinan is the fifth rural bank closed by the BSP this year. The regulator shut down Rural Bank of San Juan in May, Binangonan Rural Bank, Inc. in April, Rural Bank of San Marcelino, Inc. in March and Rural Bank of San Agustin (Isabela), Inc. in January.

Last year, the BSP closed down nine banks, namely the Rural Bank of Galimuyod (Ilocos Sur) Inc., Rural Bank of Polomolok (South Cotabato), Banco Rural De General Tinio (Nueva Ecija), Farmers Savings and Loan Bank (Bulacan), Metro-Cebu Public Savings Bank, Rural Bank of Mahaplag (Leyte), Rural Bank of Salcedo (Ilocos Sur), Rural Bank of San Lorenzo Ruiz (Siniloan), and Rural Bank of San Nicolas (Pangasinan).

In 2021, the number of banks closed by the BSP climbed to 13 from just five in 2020.

Despite the rising number of closed rural banks, central bank data showed that total assets of small lenders rose by 19.8% to P343.84 billion as of end-December 2022 from P287.03 billion a year prior. — K.B. Ta-asan

RELATED ARTICLESMORE FROM AUTHOR