THE BANGKO SENTRAL ng Pilipinas (BSP) has shut down a bank based in Quezon City, bringing the number of closed lenders to 12 this year.
The BSP’s Monetary Board ordered the closure of the San Francisco Del Monte Rural Bank on Thursday. The Philippine Deposit Insurance Corp. (PDIC) took over the bank a day later and liquidate its assets.
San Francisco Del Monte Rural Bank runs one branch in Barangay Damayan in the city.
The central bank has the authority to shut down banks which are found not viable to remain in business. The PDIC’s takeover paves the way for the state-run insurer to acquire the bank’s assets and pay liabilities to depositors.
Bank deposits are insured up to P500,000 per depositor, according to the PDIC charter. Any lender which have been placed under liquidation cannot be reopened or revive its banking operations.
Funds used to settle valid deposit insurance claims are drawn from the Deposit Insurance Fund managed by the PDIC, as well as from remaining cash and assets held by the fallen lender.
With the PDIC takeover, bank directors, officers and shareholders cannot do transactions or meddle with records on the lender’s behalf.
The shutdown of the Quezon City-based bank brings the total of shuttered lenders to 12 this year, already well above the seven which the BSP ordered closed in 2017.
Other lenders which have been shuttered by the BSP this year include the Rural Bank of Maigo, Inc. in Lanao del Norte; the Rural Bank of Luna, Inc. in Apayao; Rural Bank of Pagbilao, Inc. in Quezon; the Rural Bank of Sta. Elena, Inc. in Camarines Norte.
The Tiaong Rural Bank, Inc., Empire Rural Bank, and Women’s Rural Bank, Inc. in Batangas; Bangko Buena Consolidated, Inc. of Iloilo; the Rural Bank of Initao, Inc. in Misamis Oriental; and the Rural Bank of Loreto, Inc. in Dinagat Islands have also been ordered to stop operations earlier this year.
BSP Governor Nestor A. Espenilla, Jr. previously said that they are actively weeding out “weak” banks in the interest of consumer protection and financial stability. — Melissa Luz T. Lopez