A RURAL bank in Bicol has been permitted to voluntary surrender its banking license, according to the Bangko Sentral ng Pilipinas (BSP).

In a circular dated April 14, BSP Deputy Governor Chuchi G. Fonacier said that the Monetary Board approved the voluntary license surrender of First Naga Rural Bank, Inc.

“The end-view of the voluntary surrender of the banking license is to proceed with voluntary dissolution and liquidation,” Ms. Fonacier said in a text message.

The Philippine Deposit and Insurance Corp. handles the liquidation and administration of assets of such lenders.

The BSP allows for a voluntary surrender of a banking license for lenders undertaking a voluntary dissolution and liquidation or those that want to become non-bank institutions.

Operating income of rural banks hit P29.627 billion in 2019, up from P26.554 billion a year earlier, according to the BSP.

Meanwhile, total assets stood at P243.891 billion in 2019, from P229.867 a year earlier. — Luz Wendy T. Noble